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The number of unemployed remains unchanged but the number of people in jobs looking for extra...

The number of unemployed remains unchanged but the number of people in jobs looking for extra hours has increased. How does this affect the underutilisation rate? Explain your answer.

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Answer #1

It can actually be mentioned that the number of people looking for jobsfor extra hours increased and this actually means that the underutilization rate increased because of the fact that the people can tend to work more and their capacity is not fully utilised and this proportion is increasing means the underutilization rate is increasing all in all and in this regard it can be mentioned that this underutilization rate is directly linked with that of the efficiency where this has to be bridged so that efficiency in terms of production can be reached

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