Australian Underemployment: Causes, Effects, and Solutions Essay

This essay examines the multifaceted issue of underemployment in Australia, defining it as a situation where individuals desire and are available for more work hours but are unable to secure them, often working less than 35 hours per week. The essay attributes the causes of underemployment to market forces of demand and supply, along with business cycles, which influence employment patterns and income. It highlights that an oversupply of laborers and downturns in business cycles can lead to part-time employment. The effects of underemployment, as explored in the essay, include psychological challenges like job dissatisfaction, low self-esteem, anger, and depression. Furthermore, it discusses the economic consequences, such as financial insecurity, poverty, and the potential for unemployment. The essay concludes by emphasizing that underemployment mirrors unemployment in its causes and outcomes, significantly impacting individuals' psychological, economic, and social well-being.

Health Science
Students Name
Institution

Cause and Effect 1
Introduction
Noteworthy, underemployment is a form of unemployment in a developed
country such as Australia.According to the Australian Bureau of Statistics definition,
underemployment refers to persons over fifteen years who desire to work and are
available for additional working hours but such terms of employment are not available.
Notably, working less than 35hours weekly is considered underemployment in the
Australian context. Among the major causes of underemployment is the shift in market
forces of demand and supply and business cycles. Consequently, underemployment leads
to unemployment, financial insecurity, lower job satisfaction, anger, and depression.
Overall, underemployment causes are responsible for the unemployment and its
consequences.
Causes.
Unfortunately, market forces of demand and supply are responsible for
underemployment. This is because in the case that there is a large supply of laborers but
the availability of employment opportunities is limited .Basically, an oversupply of
laborers at the expense of existing working opportunities will lead to part of the taskforce
being partially employed. Moreover, the business cycles have an impact on the demand
and supply of goods and services thus influencing employment patterns and income.
Usually, downturn business cycles lead to few working hours which is underemployment.
Also, due to the seasonal nature of some business opportunities, for instance, agricultural

Cause and Effect 2
and horticultural products industries experience a downturn in business cycles might lead
to unemployment and fewer working hours thus promoting under-employment.
Additionally, business downturn cycles in agricultural based companies
might lead to laborer layoffs. Typically,agricultural based industries thrive on seasons
when agricultural produce are available but because of seasonal changes, agricultural
produce might be scarce hence underemployment for fulltime and part-time laborers.
Based on the Official site gazette, three out of four employed persons in the agricultural
sector are underemployed (Winefield & Anderson 2011).Agriculture based industries are
likely to experience low business cycles when the produce required in production has
decreased in supply. Typically, low business cycles might force industries into early
retrenchment of workers or layoffs thus underemployment and unemployment.
Also, factors of demand and supply in dominant industries such as mining
and manufacturing have shifted thus underemployment. Owing to the industrial shift
from manufacturing to retail trade, food, and accommodation industries has created part-
time employment due to fewer working hours (Farwin & Uthayakumar,2018)..For
instance, miners worked more hours during the mining boom as contrasted with after the
mining boom. Currently, due to the struggling nature of the Australian manufacturing and
mining industries, fewer workers are needed in these industries hence underemployment.
Owing to the flexibility of working hours in part-time employment there is
underemployment. Unlike full-time workings, Part-time laborers are able to choose their
working hours hence the growing demand for part-time employment opportunities
(Chung, 2018).Some workers prefer to choose work hours.

Cause and Effect 3
Unlike full time employment, laborers work more than 35 hours a week
hence underemployment. Also, the availability of more part-time employment
opportunities in the service and hospitality industries has made the demand for flexible
working hours rise hence promoting underemployment. The rising demand for flexible
employment schedule has contributed to the underemployment growth rates.
Effect
As a result of underemployment, full-time and part-time laborers might
experience psychological challenges. Some of these psychological challenges include job
dissatisfaction, low self-esteem, anger, and depression (Oliver, 2018).Sometimes part
time laborers get to work on employment opportunities they do not desire or lack the
expertise. This might lead to frustration and dissatisfaction in the workplace. Also, the
fact that part-time work equals fewer hours at the workplace might lead to financial
instability thus leading to conditions such as depression. Additionally, lower job
dissatisfaction for laborers might stem from underutilization of their skillset at the
workplace.
The fact that underemployment involves fewer work hours might underutilize the
employment expertise of the laborers thus contributing to low satisfaction at the
workplace. The fact that laborers are unable to fully realize their potential at the
workplace might lead to frustrations and low morale at the workplace. Also, the
unemployed are likely to suffer from depression due to financial insecurity and financial
instability. This happens due to the lack of income certainty and the fact that part time
workers earn less as compared to fully employed laborers with a monthly income. The

Cause and Effect 4
inability to purchase basic necessities due to low income might contribute to depression
among workers (Warren, 2015).
Consequently, market forces of demand and supply also contribute to
underemployment. Through underemployment, laborers earn less income thus
contributing to lower economic living standards. In a way, underemployment leads to
unemployment. Basically, underemployment is a form of unemployment. Usually, during
the business downturn, most employers would prefer to lay off workers so as to reduce
additional expenses in order to make a profit. In the business. Also when the demand for
a product reduces, employers are likely to reduce the workforce in order to maintain
profit margins. To reduce wastage, employers might cut down on the workforce in the
event that the demand for goods and services has gone down thus leading to
unemployment.
Moreover, the downturn in the demand for goods and services might lead
to reduced income for laborers hence financial insecurity and uncertainty. The fact that
partial employment lacks long term benefits such as insurance, pension contributes to
poverty in the long run. Also, low income from partial employment contributes to
poverty where laborers are unable to purchase basic necessities .Also, low income earners
are unlikely to partake in investment due to limited disposable income thus contributing
to rising poverty levels. Unfortunately, market forces of demand and supply keep various
industries in business. A downturn in the business cycle leads to massive unemployment
which affects the psychological, economic and social aspects of laborers' lives.
Conclusion

Cause and Effect 5
Worth noting, underemployment is a form of unemployment .Equally, the causes
and impacts of unemployment are similar to those of underemployment. Specifically,
underemployment is a consequence of market forces of demand and supply inclusive of
the business cycle. Among the effects of underemployment are psychological challenges
such as anger, depression and lower employment satisfaction. On an economic front,
underemployment causes financial insecurity, poverty, and unemployment. Overall,
under-employment is as bad as unemployment in causes and outcomes.

Cause and Effect 6
References
Chung, H. (2018).Flexible working and unpaid in the UK Revisited. Retrieved from
http://journals.sagepub.com/doi/10.1177/0022185618763975
Farwin, S. A. (2018). The relationship between underemployment and job evidence from
Nuwaragama area, Anuradhapura district .Journal of Management, Vol 14, Issue 1,PP
46-56
Oliver, D. (2018).The Australian Labor Market in 2017.Retrieved from
http://journals.sagepub.com/doi/10.1177/0022185618763975
Satisfaction of commercial bank employees:
Warren, T. (2015).Work time underemployment and financial hardship: Class inequalities and
recession in the UK. Retrieved from
https://journals.sagepub.com/doi/pdf/10.1177/0950017014559264
Wilkins, R. (2018).The consequences of underemployment for the underemployed. Journal of
Industrial relations. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?
doi=10.1.1.880.5376&rep=rep1&type=pdf

Cause and Effect 7
Winefield, H.A. & Anderson, S. (20110.The Impact of underemployment on psychological
health, physical health, and work Attitudes. Underemployment: Psychological,
Economic, and Social Challenges. Pg 165-185