Latest statistics reveal a hidden two percent are now underemployed
Commenting on Tuesday’s (29th April) release of the Bell-Blanchflower index of underemployment, Geraint Johnes, director at The Work Foundation, said:
“The latest underemployment rate of 9% shows that, despite the recovery, the labour market has still not adjusted back to what we once thought of as normal. Prior to the recession, there was very little underemployment amongst those in work but that is not the case at present, with it adding the equivalent of almost two percentage points to the official unemployment rate.
“The economy is showing some very encouraging signs but the nature of this recovery appears to be far more nuanced than usual. While the overall unemployment rate is falling, it may not reveal the full picture of the labour market. There already appears to be some evidence of job insecurity leading to larger numbers of people working unpaid overtime, of a rising trend in self-employment - where people opt for this path in the absence of others - and of underemployment especially prevalent amongst the young where the rate is now at 28.3%.”
