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2.1.3 Underemployment and Economic Inactivity (Edexcel A-Level Economics Teaching PowerPoint)


Last updated 12 Sept 2023

This editable and downloadable powerpoint covers Underemployment and Economic Inactivity

Underemployment is a condition in which workers are employed, but not using their skills, qualifications, or education to their full potential. Some examples of underemployment include:

  • Overqualification: When workers have a level of education or qualifications that exceed the requirements of their job.
  • Part-time employment: When workers are employed part-time but would prefer to work full-time.
  • Seasonal employment: When workers are employed only during certain seasons or months, resulting in periods of unemployment throughout the year.

Economic inactivity refers to people of working age who are not employed and not actively seeking work. This group includes:

  • Students
  • Retired people
  • Homemakers
  • People who are unable to work due to illness or disability
  • People who are not actively looking for work for other reasons

Economic inactivity differs from unemployment because it includes people who are not looking for work, while unemployment only includes people who are actively seeking employment but are unable to find it.

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