Work

From Graduation to Underemployment

Year: 2025
Type: article
Abstract: Underemployment is a global concern affecting both developed and developing nations. Despite a substantial increase in graduates, the labour market grapples with a structural issue of underemployment. Drawing on data from government reports, this study investigates the trends, contributing factors, and implications of skill mismatch in the context of graduate underemployment. The number of graduates produced has been increasing over the years. The main question is, do we have enough jobs for graduates? The analysis reveals an alarming trend of graduate underemployment, with overeducation intensifying over the years. Our study finds a widening gap between the rising graduates and the proportion of filled skilled jobs. Economically, a high underemployment rate decreases productivity among graduates, as their skills remain underutilised in roles that do not match their qualifications. Socially, underemployed graduates may experience lower wage rates, leading to dissatisfaction and a sense of unfulfillment in their careers. Hence, it is crucial to close the gap between graduates produced and skilled job creation. Recommendations include collaborative efforts between the government, educational institutions, and industries to address structural imbalances.
Language: English
Subfield: Education
Open Access status: diamond
OpenAlex ID: W4408313170
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