Underemployment is a problem that has been particularly difficult on recent college graduates, but its effects are felt by all demographics.
Although the unemployment rate is down, you could say we have the most well-educated bartenders and busboys in history. The World Economic Forum found that most college-educated workers took jobs in low-earning industries between 2000 and 2014, and wages of young college graduates are 2.5 percent lower than they were in 2000.
This has an impact on more than just graduates and the parents they may be moving back in with. Unemployed and underemployed people spend less on consumables. In turn, low demand for goods and services leads to lower growth, and companies that aren’t growing don’t create more jobs.
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