When a skilled worker cannot find a higher-paid job but choose to work in positions requiring fewer skills with lower pay or a worker who would rather work full-time cannot secure such positions but secure only part-time positions, the situations are examples of underemployment.
Underemployment exists when workers do not get the positions that they have skills for but only get jobs requiring lower skills.
Underemployment can also exist when, for example, an engineer works as a customer service officer with less pay. Another example is when a graduate works in a part-time role when she desires a full-time job.
Thus, these two scenarios describe examples of underemployment.
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