The percentage of the American workforce considered “underemployed” hit 20.3% during the month of March, according to a survey conducted by Gallup. The “underemployed” category consists of workers who are unemployed or can not find a sufficient amount of work.
Quoth Gallup:
A rise in the percentage of part-timers wanting to work full time (from 9.2% to 9.9%) is responsible for the March increase in underemployment. Unemployment saw a slight, but insignificant, decline in March.
Which is in line with predictions from Bloomberg, which expects a small number of jobs created but the unemployment rate to remain at a disturbing 9.7%.
Six in 10 underemployed Americans are not hopeful they will find work or move from part-time to full-time work in the next four weeks. That translates to 12% of the workforce that is both underemployed and not hopeful they will find their desired amount of work. The lack of change suggests that underemployed Americans anticipated long-term difficulties in finding work well before the administration’s formal announcement was made.
It’s another reminder that a lower unemployment rate doesn’t necessarily translate to higher household incomes. The unemployment rate only accounts for the percentage of the workforce without a job. What’s not figured into that statistic would be the percentage of individuals who are unable to find sufficient work or have dropped out of the workforce entirely.


by Stephan Tawney on April 1, 2010