The restructuring of the economy due to the rise of globalization in the labour markets is what led to lower employment opportunities. This gave rise to the undermining issue of Underemployment that can have only ghastly effects on any economy. This is certainly a pervasive issue; however, it was not discussed in detail as of 2011 when the book ‘Underemployment- Psychological, Economic and Social Challenges’ was published. The book managed to explain how the signature problem of Unemployment was overshadowing the rising issue of Underemployment. (Douglas C. Maynard and Daniel C. Feldman, 2011). 

In a country like India, Overpopulation and Unemployment are not the only hindrances to survival. Though India has had a history with Unemployment, the issue of Underemployment is equally the reason why India is still a ‘developing nation’. One may think that Underemployment and Unemployment are interchangeable terms but sadly, Indian society still considers an underemployed person worthy of respect more than an unemployed individual only because an underemployed person chooses to work in spite of a low salary. 

Comparative statistics between US and India
In 2014, research was conducted by the economists at Duke University and the University of North Carolina in the US. Reports stated that 44 percent of recent college graduates in the US were stuck in jobs that did not require any higher education. (Matt O'Brien, 2014). This was because not everyone happened to find a job worth their degree, thus, ended up working in café shops that paid them not even half the amount they spent on their education. Moreover, their chances for a better salary would decrease even if they found a job worth their degree due to the peanuts their previous job paid them. This can leave the person in a long spell of Underemployment for the rest of their life. 

The research, also, found that 37 percent of four-year grads and 66 percent of college graduates tend to be underemployed at the start of their careers. (Matt O’Brien, 2014). The results of this research stated that the more the student stayed underemployed, there was a likelihood that they would further remain underemployed for several longer years. Researchers Clark, Joubert and Maurel called this phase “a transitory state for 23-year-old students”. The economists in this study called Underemployment a bigger problem than Unemployment. This is because they felt that unemployed people were more likely to find a job with an income worth their qualification and recover the losses but the underemployed ones can never do that. (Matt O’Brien, 2014)

In comparison to India, every stratum of the society including various work backgrounds have faced Underemployment. The 2018 report on the ‘State of Working India’ stated that 40 percent of workers among the “non-agricultural wage earners'' were poorly paid and did not have a secure job. These statistics were accumulated before the Covid-19 pandemic. Amidst Covid-19, around 54 lakh individuals resorted to lower quality employment from which 47 lakh were from the agricultural field while seven lakh people were daily wagers. (Yogendra Yadav, 2021).

The World Bank keeps updating citizens about India’s declining unemployment rates, what is not shown is that India has a rising number of underemployed citizens as well. The Centre for Monitoring Indian Economy (CMIE) mentioned that India’s unemployment rate declined to 5.27% in 2019, owing to the Covid-19 pandemic. (CMIE Report, 2021) However, there has been no mention of the number of the underemployed citizens. It is an undeniable fact that several individuals were left unemployed due to Covid-19 and the only way to survive was to work in low-income jobs or work part-time. 

Not only this, it was reported by the Sachivalaya Administration that around 23 lakh unemployed citizens applied for a peon’s job in Uttar Pradesh which had only 368 vacancies. From the 23 lakh applicants, two lakh candidates were just graduates while 255 candidates were PhD holders. (Shailvee Sharda, 2015). The Indian Railways had issued a statement regarding the job vacancies where they were offering vacancies for 90 thousand candidates but around 2.5 crore applications were received. (Mahendra K Singh, 2018).

Effects of Underemployment 

The issue of Underemployment may have several causes starting from structural changes, technological changes or even sudden increases in demand and supply in the economy but Underemployment can have significant effects on a country’s growth and development as well. Firstly, on a national level, it will give rise to poverty as inadequate income will lead to inadequate demand for products and inadequate supply. If there is no supply then there is no economic growth which will reduce the GDP, thus, leading to a recession in the country. Secondly, if individuals have been underemployed for years, an inefficiency to perform well will start developing which will lead to under-confidence, anxiety and many other mental health and financial issues on a personal level. (Corporate Finance Institute).

Avi Lewis rightly said, ‘We are dealing with a crisis of Inequality, of Joblessness, of Underemployment.’ The issue of Underemployment needs to be dealt with equal importance and awareness just like any other issue of national concern. The problem is that almost all countries are trying to fight Unemployment so they have not paid attention to this rising phenomenon that can prove to be even more harmful in the coming years. The question that one needs to ask is that ‘Is one’s country well aware of how Underemployment has been rising and does the country have enough resources to curb this issue?’ or ‘Is this issue not being addressed as it paves the way to solve the larger issue of Unemployment?’