Question

Underemployment is caused when ______.

Options

• More workers are employed than actually required.

• Fewer workers are employed than actually required.

• Workers are paid more than their actual output.

• Jobs are given only to highly educated workers.

Answer 1

Underemployment is caused when more workers are employed than actually required.

Explanation:

Underemployment occurs when people are working, but their skills, time, or potential are not fully utilised. In other words, more workers are employed than necessary for the amount of work available. For example, in rural India, several family members may work on a small piece of farmland even though only one or two people are needed. Everyone is technically employed, but their productivity is very low; this is underemployment.