2 Skills-related underemployment
Our second dimension of underemployment is skills-related underemployment. We examine levels and trends over time in the number of workers who have skills that are greater than those required in their current job. We measure skills-related underemployment via one indicator we construct as follows:
Using education level data, we first group employees into those who have High, Intermediate and Low skill levels.
We group occupations into three skill levels: those that demand High, Intermediate and Low skills.
We consider employees as being skills-related underemployed when their education level is higher than the skill level required in their current occupation.
(See Technical Appendix 3: Skills-related underemployment for full details).