Question

Why should we be worried about underemployment?

Answer 1

We should be worried about underemployment because it suggests economic inefficiencies and lower output. In India, many labourers are trapped in low-productivity agricultural employment that contributes nothing to the economy. This concealed unemployment means that their potential is not being completely utilized. Underemployment reduces incomes, reduces living standards, and perpetuates poverty. It emphasises the importance of increasing job creation in the secondary and tertiary sectors in order to give more productive and meaningful work opportunities.