Underemployment in America

The nation’s lackluster economic performance continues to be a concern. This is evident in stubbornly high unemployment rates (See: Suburban and Urban Core Poverty: 2012 Special Report),which continue to be well above historic norms. There is another indicator, which may be even more important – underemployment. This figure, 80 percent above the unemployment rate, can be used as a measure of the "output gap," which a Congressional Research Service (CRS) report refers to as "the rate of actual output (economic) growth compared with the rate of potential output growth." CRS continues: "Potential output is a measure of the economy’s capacity to produce goods and services when resources (e.g., labor) are fully utilized" (Note 1).

by Wendell Cox

Full Story: http://www.newgeography.com/content/004016-underemployment-america