UNDER

EMPLOYMENT
WHO ARE THE UNDEREMPLOYED?

Three (3) common categories

1. Skilled workers in low-income jobs.

2. Skilled workers in jobs that don’t fully utilize their skills

3. Part-time workers who would rather work full-time

TYPES OF UNDEREMPLOYMENT

1. Visible
- These are employees who work fewer hours than what is considered normal in their
field or industry.
- They possess the skills to be given a full-time position but are unable to find regular
employment.
2. Invisible
- These are the individuals that work jobs that don’t utilize their skills.
- According to the CFI or Corporate Finance Institute “This type of underemployment
is very difficult to measure and requires extensive research and surveys.”
TYPES OF UNDEREMPLOYMENT

3. The marginally attached to the labor force

- This type includes people who have looked for employment in the past, who
would like to work, but have given up looking for employment altogether
because of their prolonged inability to find work.

Can be considered*
The working poor
- These are the people that have jobs, but are still under the poverty line.
ADVERSE IMPACT
Statics
According to the Philippines Statistics Authority, underemployment rate is
down to 17.3% in July 2020 compared to the estimate of 18.9% in April 2020.
However, the underemployment rate is still worse than the estimate in July
2019 at 13.6%. In terms of count, about 7.1 million were underemployed as
July 2020, given the varying working arrangements and reduced working hours
being implemented by companies/establishments. In July 2019 and April 2020,
about 5.8 million and 6.4 million Filipinos, respectively, were underemployed.
ADVERSE IMPACT

1. Job Growth
- Low income, lower than their supposed pay grade.
2. Business Growth
- Employees not being able to update their skills
3. Health
- Stress and sense of inadequacy.
SOLUTIONS
1. Training in the workplace
- Today’s employers more often than not favour outside hires with ready-to-go experience.
- By doing employers or trainers are allowing entry-level employees to gain experience and help them climb the
career ladder.

2. Developing Entrepreneurship
- Young entrepreneurs need coaching and networks to build job-creating businesses.
- Leaders need to foster a culture of mentorship.

3. Skill Bridging Programs

- These are for those who left schools or school leavers.
- This is to provide them with knowledge or to help them recollect already claimed knowledge.
BY JOEMARI SUBA