3 Signs You’re Underemployed
Written by
Yaël Bizouati-Kennedy
Edited by
Molly Sullivan
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If you’re working part time, not feeling challenged enough in your job or feeling overqualified for your position, you might be underemployed. While there are many signs that you can be in such a position, experts said it’s key to be aware of them as being underemployed may have detrimental consequences for your future financial well-being, as well as your mental health.
Underemployment is the underuse of a worker’s skills, education or availability, a predicament that often results in diminished financial gains and professional stagnation, said Sophia Tang, founder, Nako Cosmetics.
“Reflecting on my initial years in the beauty industry, I was often confined to roles that barely scratched the surface of my capabilities and aspirations, ” she said. “This mismatch limited my earning potential and professional growth, echoing the silent struggle many face in their careers.”
And underemployed workers typically earn much less than the money they can make in a job that fully matches their qualifications, making it difficult to keep up with day-to-day expenses, let alone invest or save for retirement, said Sebastian Morgan, senior career coach and CV/resume expert at CV Genius.
“Underemployment can even limit your future earning potential by making it more difficult to gain the specialized experience necessary to advance to more senior roles over the course of your career,” Morgan added.
Here are some red flags pointing out that you may be underemployed.
You’re Overqualified
If you feel overqualified for your current job, never feel challenged and have few opportunities for advancement or growth, you may be underemployed, said Peter C. Earle, senior economist, American Institute for Economic Research.
“Additionally, if you are working at a job where your direct co-workers — people doing the same job — are vastly less schooled or experienced than you, or if your educational peers are doing higher level jobs and/or making much more money, those are indications of the underutilization of your skills, training or experience,” Earle added.
You’re Unengaged
If you find yourself unengaged, underutilized or generally dissatisfied with your day-to-day responsibilities, it could be a sign that you’re underemployed.
“The most obvious indicator is if your skills and experience far exceed your actual job duties. For instance, if you have an advanced degree or significant expertise, but your role doesn’t require much strategic thinking or specialized knowledge, you may feel stagnant,” said Gauri Manglik, CEO and co-founder at Instrumentl.
You Have Stopped Learning on the Job
Another red flag is if you’ve stopped learning on the job, Manglik said.
“Professional growth and development tend to taper off when you have little room for expanded responsibilities. Feeling bored, unmotivated and ‘checked out’ are other clues. The work itself provides no sense of meaning or impact,” she added.
What Can You Do About It?
Yet, experts — such as Manglik — said that if these signs sound familiar, “don’t despair.”
First, take stock of your transferable abilities and determine industries or roles that would be a better match. You can also seek out projects that stretch your skills or discuss growth opportunities with your manager. And if your company offers few options, Manglik recommended polishing your resume and expanding your search.
“The goal is to find work that’s challenging, engaging, and makes the best use of your talents,” Manglik said.
And of course, staying in an underemployment situation can seriously erode your financial stability and make it difficult to grow your wealth, said Morgan, adding that there are ways you can build yourself up financially if you’re underemployed.
He suggested seeking support and guidance from career counselors, mentors or financial advisors to develop a comprehensive plan for your financial growth.
“If this is out of your reach right now, many communities offer free career and financial counseling services,” he added.
“You should also invest in your professional development. Take online courses, get industry-specific certifications, and attend networking events to upskill and gain valuable connections,” he said. “By taking these tangible steps, you can start to regain control of your finances, build your skills, and position yourself for greater financial success, even while underemployed.”
In addition, experts also underscored the importance of networking — nurturing and building relationships are also important during times of underemployment as many job opportunities arise through connections.
“You may consider attending a conference, reaching out to old colleagues or being intentional about developing new relationships within your current organization,” said Jessica Roper, director of career services at University of Phoenix, adding that being proactive can make a significant difference.
“While underemployment is most often a less than ideal situation, it can present opportunities for resilience and personal growth as you navigate through adversity, adapt to change, and seek out new avenues for professional development and career success,” she said.
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