What is the term for workers who are highly skilled but working in low-paying or part-time jobs?

Study for the Economic Principles exam. Engage with flashcards and multiple choice questions, each with hints and explanations. Get ready for success!

The term for workers who are highly skilled but working in low-paying or part-time jobs is "underemployed." This classification highlights a mismatch between an individual's qualifications and the job opportunities available to them. Underemployment can happen for various reasons, such as economic downturns, changes in industry demand, or personal circumstances.

These workers are often capable of contributing more value to their jobs than they are currently able to, which raises concerns about resource allocation in the labor market. Underemployment can lead to dissatisfaction and a decrease in overall economic productivity since these workers might not be fully utilizing their skills and education in their current roles.

In contrast, overqualified specifically indicates that a worker possesses more skills or qualifications than are necessary for their job, while discouraged workers refers to individuals who have stopped looking for employment due to a lack of opportunities. Unskilled labor describes jobs that do not require specialized skills or training. Therefore, underemployed remains the most fitting term for the situation described.

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