Labor Force Underutilization

Labor Force Underutilization refers to the mismatch between the number of people who are available and willing to work and those who are effectively employed. This includes not only unemployed individuals actively seeking work but also those working part-time who desire full-time positions, and discouraged workers who have stopped looking for employment altogether. Essentially, it highlights the inefficiencies in the labor market, indicating that skilled individuals are not fully engaged in productive work, which can have negative impacts on the economy and individual livelihoods.