The Effects of Underemployment on your Career

Lisa Matomola

Most graduates aspire to get a job within the field they studied and often grow within the field. Depending on how fortunate one is, it may not always be the case. What then is under- employment and what are the causes as well as effects on employees?

What is underemploy- ment?

Underemployment oc- curs when an individual is in a position that doesn’t fully utilise their skills, qualifications and experi- ence. this is when an employee who works in a position, unwillingly finds himself/herself in a position that is paying a lower salary in comparison

to their skills and experi- ence. there are two types of underemployment, vis- ible and invisible. Visible underemployment refers to a situation where an employee works a lim- ited number of hours in a specific field. Invisible underemployment occurs when an employee works in a different field in com- parison to their skills and technical know-how.

What are the Causes

Inability to find a job due to high unemployment rates leads to underem- ployment. Job seekers take up any jobs available in

order to make ends meet. the lack of entry-level positions in some indus- tries makes it difficult for graduates to secure em- ployment, thus settling for any job that can keep them busy. Underemployment is prevalent in countries with high unemployment rates, especially during arecession.


Furthermore, when em-ployees lose jobs as a result of retrenchments or contracts not being renewed, they also ac- tively look for jobs that can help them put food on the table. In addition, underemployment occurs

when there is an oversup- ply of the same skills in the market, the more the graduates in the market in the same field, the harder it becomes to get a job as the demand is low in a specific industry. Lastly, technological advances may have consequences for employee jobs

Effects for Underem- ployment

Underemployment, like unemployment, has dire consequences for one’s career. An underemployed individual misses out on the opportunity to acquire skills in their field and at

times may struggle to find a job in their field of study. For others, it means that they are paid lower salaries as they cannot be paid on the basis of their current qualifications. At times, others find themselves changing careers unwill- ingly in order to avoid being underpaid for a very long time. Underemploy- ment can also affect one’s lifestyle, as individuals may live below the poverty line. Graduates are likely to not be exposed to jobs that can increase their knowl- edge and skills and at times even miss out on network- ing opportunities with ex- perts in their field who may be beneficial in terms of mentoring and coaching.

this is often referred to as structural unemployment. Underemployment can cause psychological, and mental health issues such as depression. For those employed, job satisfaction may be elusive and that the case and can result in disengaged employees.

Avoiding Underemployment

one can opt to not ap- ply for a job in a specific field, which at times may be tough, given the current economic downturn. What is important to note is that, the longer you stay in a role in which you may not be utilising your skills, the longer it will take you to get a job in that field.

Employers should also take into consideration that, when offering oppor- tunities to those who may be “overqualified”, they should also provide them with career advancement opportunities.

*Lisa Matomola is an HR Consultant and job finder/career coach

Twitter @mieyolisa


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