Underemployed workers

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Employed people who want to work more hours or worked reduced hours, including preferred hours and usual hours not worked, and underemployment ratios.

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Reference period
February 2024

Key statistics

In February 2024:

  • Of the 14.5 million employed people in May 2024, 1.7 were underemployed
  • 889,800 part-time workers were underemployed
  • About half of the underemployed part-time workers preferred to work full-time hours (49%).

This Underemployed workers release contains data from both the May 2024 Labour Force survey and the February 2024 Participation, Job Search and Mobility survey.

Other data collected from the Participation, Job Search and Mobility survey are published in:

Microdata from the PJSM survey for 2015 to 2024 is available in TableBuilder and DataLab (as a supplementary file to the Longitudinal Labour Force). For more information, refer to Microdata and TableBuilder: Participation, Job Search and Mobility

A detailed data item list for the PJSM microdata is available in Microdata and TableBuilder: Participation, Job Search and Mobility

Underemployed - May 2024

Comparison with underemployment measures in Labour Force, Australia

The following analysis explores underemployment using an expanded scope and is additional to the measures found in Labour Force, Australia; Labour Force, Australia, Detailed publications and data published from the Participation, Job Search and Mobility Survey.

It includes all people indicating:

  • they had their hours reduced (e.g. they were stood down or their employer had insufficient work for them); or
  • they had a preference to work more hours than they usually work.

In contrast, the headline underemployment estimates published in Labour Force, Australia, which are based on long-standing international standards, include two groups: part-time employed who would prefer, and are available for, more hours than they usually work, plus full-time employed who worked part-time hours for economic reasons.

The ABS recommends using the data below as a supplementary analytical series for understanding the underemployed population.

Employed people can be underemployed either because:

  • they worked less than their usual hours for economic reasons (i.e. due to being 'stood down, or there was insufficient or no work available - Hours reduced (sometimes referred to as the 'Cyclical underemployed')
  • they would prefer (and are available) to work more hours than they usually work - Prefers more hours (sometimes referred to as the 'Structural underemployed').

Of the 14.5 million employed people in May 2024, 1.7 million were underemployed. Of these:

  • 328,000 people had their hours reduced - 119,700 were employed full-time and 208,300 employed part-time
  • 1,492,800 people preferred more hours - 586,800 were employed full-time and 906,100 employed part-time.

There were 137,400 people who were in both categories - they had their hours reduced to less than usual and also preferred to work more than usual hours.

Diagram 1: Expanded scope of underemployment

Note: There are people who preferred more hours and also had their hours reduced, that is, they worked less hours than usual, and also prefer to work more than their usual hours - so the sum of the people who preferred more hours and people who had their hours reduced does not equal the total underemployed.

While Chart 1 shows a 'headcount measure' of underemployment (the number of people who are underemployed) an alternative way to look at underemployment is through a 'volume measure' of underemployment - the number of 'hours not worked' by underemployed people.

Chart 2 shows the weekly hours not worked of underemployed people. The weekly hours not worked are:

  • the number of additional hours they would prefer, and are available, to work (preferred more hours)
  • the difference between usual hours and the hours actually worked in the reference week (hours reduced).

In May 2024, there were a total of 18.2 million hours not worked. Of these:

  • 16.6 million hours were not worked by people who preferred more hours - i.e. the additional hours preferred
  • 3.2 million hours were not worked by people who had their hours reduced - i.e. the usual hours not worked for economic reasons.

Hours not worked by people who had their hours reduced is the difference between their usual hours and the hours actually worked in the reference week, and the hours not worked by people who preferred more hours is the additional hours preferred.

In May 2024, the headcount underemployment ratio was 11.6% while the hours-based underemployment ratio was considerably lower at 3.8%.

The headcount underemployment ratio is the number of underemployed as a proportion of all employed.
The hours-based underemployment ratio is the hours not worked as a proportion of the potential hours of employed people (i.e. the hours usually worked of all employed plus the additional hours preferred of the structurally underemployed).

Hours-based measures of underemployment are generally lower than headcount measures, as the hours-based measures account for the extent of a person's underemployment whereas a headcount measure counts all underemployed people the same.

The headcount underemployment ratio is the number of underemployed as a proportion of all employed.
The hours-based underemployment ratio is the hours not worked as a proportion of the potential hours of employed people (i.e. the hours usually worked of all employed plus the additional hours preferred by the structurally underemployed).

Sex and Age

Note: There are people who preferred more hours and also had their hours reduced, that is, they worked less hours than usual, and also prefer to work more than their usual hours - so the sum of the people who preferred more hours and the people who had their hours reduced does not equal the total underemployed.

In May 2024, 11.6% of all employed people were underemployed (the underemployment ratio). Since July 2014 (the first month this expanded data are available for), employed women have generally been slightly more likely to be underemployed than men. However, since the start of the COVID-19 pandemic the underemployment ratio has generally been higher for men.

Note: There are people who preferred more hours and also had their hours reduced, that is, they worked less hours than usual, and also prefer to work more than their usual hours - so the sum of the people who preferred more hours and the people who had their hours reduced ratio does not equal the total underemployment ratio.

Full-time / part-time status

Chart 8 shows the number of part-time and full-time employed people who are cyclically or structurally underemployed. In May 2024, there were 671,100 underemployed full-time workers and just over 1 million underemployed part-time workers.

Of the underemployed full-time workers:

  • 119,700 had their hours reduced
  • 586,800 preferred more hours.

Amongst underemployed part-time workers:

  • 208,300 had their hours reduced
  • 906,100 preferred more hours.

Note: There are people who preferred more hours and also had their hours reduced, that is, they worked less hours than usual, and also prefer to work more than their usual hours - so the sum of the people who preferred more hours and the people who had their hours reduced does not equal the total underemployed.

Hours not worked by people who had their hours reduced is the difference between usual hours and the hours worked in the reference week, and the hours not worked by people who preferred more hours is the additional hours preferred.

Preferred hours

People who were underemployed in May 2024 because they preferred to work more hours than their usual hours, on average:

  • usually worked 27 hours a week
  • would have preferred to work an additional 11 hours a week.

People who were underemployed in May 2024 because they had their hours reduced for economic reasons, on average:

  • actually worked 18 hours a week
  • would have worked an additional 10 hours a week.

Occupation

Industry

Part-time workers - February 2024

In February 2024, there were 889,800 underemployed part-time workers who preferred to work more hours (21% of all part-time workers). This was an increase of 87,100 from 802,700 underemployed part-time workers in February last year (which was 20% of all part-time workers). 

  • Men increased by 32,800 from 326,900 in February 2023 to 359,700 in February 2024.
  • Women increased by 54,300 from 475,800 in February 2023 to 530,100 in February 2024.

 

Extra hours preferred

In February 2024, about half of the underemployed part-time workers preferred to work full-time hours (49% or 438,300 underemployed part-time workers). The other half preferred to work more hours but remain working part-time (51%, or 451,600 underemployed part-time workers).

  • Men aged 25-44 years were most likely to prefer to work full-time (71%).
  • Men aged 65 years and over were least likely to prefer to work full-time (29%).

 

In February 2024, half of the underemployed part-time workers preferred an extra 10 hours or less (median extra hours preferred).

  • Men aged 25-44 years preferred the most amount of extra hours (median extra hours = 13 hours).

 

Duration of insufficient hours

In February 2024, 359,800 underemployed part-time workers spent a year or more working in a job with insufficient hours (40% of all underemployed part-time workers).  

Half of all underemployed part-time workers worked with insufficient hours for 26 weeks or less (median duration of insufficient hours).

Looking for more work or more hours

In February 2024, of the 889,800 underemployed part-time workers, just under half (47%) took active steps to look for additional hours. The top three active steps taken to look for more hours were:

  • Wrote, phoned or applied in person to an employer (31%)
  • Asked current employer for more work (29%)
  • Answered an ad for a job on the Internet, in a newspaper, etc. (27%).

For underemployed part-time workers who looked for work or more hours in February 2024, the top five difficulties in finding more work were:

  • Too many applicants for available jobs - 12% (up from 10% in February 2023)
  • Insufficient work experience - 9.4% (up from 7.1% in February 2023)
  • Lacked necessary skills or education - 8.5% (up from 7.5% in February 2023)
  • No jobs with suitable hours - 7.0% (down from 7.7% in February 2023)
  • Own ill health or disability - 6.7% (up from 4.4% in February 2023).

The category 'Other difficulties,' which includes multiple reasons not elsewhere classified, was also high in February 2024 - 16%.

If a suitable job had been offered, 12% were prepared to move interstate, and 16% were prepared to move within their state or territory.

Just over half of underemployed part-time workers (54%) preferred not to change employers in order to work more hours.

Extended underutilisation

Definitions

Data downloads

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Underemployment

Data files

New measures of underemployment

In the near future, the ABS will be introducing an expanded suite of underemployment measures. These new measures will replace some of the series published in Tables 1 and 2. 

Download all (5.38 MB)

Part-time underemployment

Data files

Relative standard errors, Tables 2 to 8

Data files
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Previous catalogue number

This release uses ABS catalogue number 6229.0*.

Data from this release was previously published in:

 

* Note: Catalogue number 6229.0 was previously used for Survey of Persons Registered with the CES as Unemployed, Mar 1977.

** Note: Catalogue number 6226.0 was previously used for School Leavers, 1970 to 1974: their Employment Status and Education Experience, May 1975.

Methodology

Participation, Job Search and Mobility, Australia methodology, February 2024