Holyrood inquiry into rise in underemployment

A HO L Y R O O D committee has launched an inquiry into why people end up doing jobs for which they are overqualified.

Underemployment has increased since the recession, although the Economy Committee said the issue is not well understood.

Convener Murdo Fraser said: “Unemployment figures are routinely used as a temperature check on our labour market. Recent unemployment statistics show a drop in those that are unemployed but evidence suggests that these figures mask a more complicated picture, with underemployment on an upwards trend.

“Little is known about the impact of this trend on our economy and on those that are underemployed.”

The committee will look at the effects of the economic crisis on underemployment, who is most likely to be affected, what is known about the degree of invisible underemployment where people are employed in posts which do not make use of their skill levels and whether policies can be targeted to address it.

The committee defines underemployment to include employed people aged 16 and over willing to work additional hours during their working week, meaning they want another job in addition to their existing one, want another job with more hours, or want to increase the total number of hours worked.

“The inquiry will also consider what actions business, the public and third sector and the Scottish Government can take on underemployment without having the unintended consequences of increasing unemployment levels,” Mr Fraser said.