by

G. Oscar Anderson, AARP Research

Underemployment can be defined two ways: when a person is working part-time involuntarily or when someone works at a job that does not use their skills and talents. A new AARP study finds

that the circumstances that lead to underemployment vary significantly for workers ages 45 and older, and the solutions for helping them must be equally varied.

control, including age discrimination (26%) or low salary (24%).

For both groups, age discrimination came up as a reason for their underemployment. For those in jobs mismatched to their skills, age discrimination was the number one reason cited to explain

their underemployment (26% cited it as a reason). Notably, those over age 60 are more likely to report age discrimination as a factor contributing to their underemployment situation than

those in their 40s and 50s, regardless of their underemployment type.

Americans who are underemployed because of a skill mismatch are significantly more likely to be unsatisfied with their job than those who are underemployed by hours (45% unsatisfied vs. 22%

unsatisfied). And just three in ten of those mismatched skill workers say they are in a field that could use their skills.

Underemployment is prompting many to search for a new job. AARP discovered nearly half of underemployed workers ages 45+ are job hunting—about 30 percent for a full-time position and 18

percent for an additional part-time job. One in four respondents reports  having been on the market for six months or more. For this underemployed group, online job sites are the top

job-search resource (72%), followed by personal connections (46%), social media (34%), and LinkedIn (30%).

Just 25% of underemployed workers surveyed, meanwhile, have tapped the expertise of professionals in their job search. Notably, those who don’t use their full skill set in their work are

less likely to have sought professional employment help for their job search than those experiencing low work-hour underemployment.

These AARP survey results suggest that solutions need to recognize the reasons behind the individual’s underemployment and the form it takes. Those who are mismatched in their skills may be

the best candidates for help and could benefit from additional training or job search coaching.

The survey was fielded online  August 12–19, 2019, to 750 underemployed adults ages 45+. Respondents were screened for their workforce status and then for underemployment. Quotas were set

for age, gender, income, and region. Respondents were weighted to CPS benchmarks for adults 45+ working or looking for work and then readjusted for the final underemployed sample.

For more information, please contact Oscar Anderson at [email protected]. For media inquiries, please contact [email protected].

Suggested citation:

Anderson, G. Oscar. Underemployment in Midlife and Older Workers. Washington, DC: AARP Research, January 2020. https://doi.org/10.26419/res.00344.001

MORE FROM AARP

September 2023 Employment Data Digest

A monthly digest of BLS employment data that examines findings from the Employment Situation Report for people ages 55+

Workers and Employers Gain from Health and Wellness Benefits

Offering health and wellness benefits to workers also benefits employers. Yoga, meditation, and relaxation training also improve employees' brain health.

Older Workers Have Mixed Feelings About AI

Older workers see AI as both an opportunity and a threat, depending on their role in the workplace. This study explores AI's impact on the future of work.

Money is a Primary Driver of Job Change

A recent AARP study finds that one in six adults age 50-plus are planning to make a job change in 2024. Money is the primary driver.

A Retirement Savings Option for Alaska Small Businesses

Seven in ten Alaska small business owners support a privately managed, ready-to-go retirement savings option for themselves and their employees.

{ "maxItems":5, "itemsPerRow":"3", "rows":"4", "loadMore":"6", "adsNum":"0", "resultsLength":"5" }