Mental Health Effects of Underemployment/Overqualification
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Being underemployed or overqualified can have serious negative effects on an employee’s mental health and psychological well-being. An employee would be considered underemployed if they are not being paid enough for the work they are doing (underpayment), are not working as many hours as needed/desired (involuntary part-time or temporary workers), are not working in their field of expertise (field mismatch), or have skills and qualifications that are not being used (overqualification).
The psychological negative effects can depend on the type of underemployment. For example, underpayment and involuntary part-time or temporary work can adversely affect people due to job insecurity and lack of access to basic financial resources. These types of underemployment are typically referred to as resource deprivation, which means they have limited access to their basic physical and psychological needs, which creates feelings of stress, uncertainty, and instability.
People who are overqualified or not working in their field of expertise are more likely to experience distress caused by job satisfaction, regretting life choices, and feeling undervalued.
These types of underemployment are typically referred to as relative deprivation, and lead to feelings of “anger, mistreatment, and resentment”. More specifically, the more that an employee feels that they are overqualified for their job, the more likely they are to experience symptoms of depression, anxiety, and chronic stress.
Overqualification has been repeatedly linked to personal distress and job dissatisfaction, which likely develops when the worker has surplus education and skills that are being neglected and underutilized (Johnson & Johnson, 1996). It can cause the worker to experience feelings of lack of control, lower self-esteem, and learned helplessness.
While some people may argue that any employment is better than no employment, some studies suggest that young people who have found employment that does not utilize their skills are just as psychologically distressed as people who are unemployed. This clearly demonstrates that the quality of employment matters deeply, and that underemployment can be equally as upsetting to one’s mental health as unemployment.
There are many possible reasons behind these negative consequences of underemployment. Some theories suggest that underemployed workers feel unsatisfied because their job does not meet their expectations compared to previous jobs, colleagues, hours desired, or skill utilization. People may take on roles that do not meet their expectations to avoid unemployment, so that their basic needs can be met first. Since people need a job to meet basic survival needs, they accept jobs that are not ideal or fitting for them, which causes distress. These unmet expectations can lead to disappointment and hopelessness, which can lead to depression and even some cases of suicide.
The quality of employment is a very important aspect of an employee’s well-being, as being underemployed can have a multitude of negative consequences on their mental health. If they are being underpaid or not working as much as needed, it can lead to distress regarding financial security and stability. If they are overqualified, it can lead to distress regarding self-esteem and dissatisfaction, which often leads to depression, and anxiety. These psychological consequences of different types of underemployment can be just as great as the psychological consequences of unemployment. The underlying cause of these situations is that people need to meet their basic survival needs, so they accept jobs that are not suitable for them, which in turn causes dissatisfaction and leads to a decline in mental well-being.
Since this phenomenon is leading to a rise in cases of depression, anxiety, and suicide, it is imperative that the issue be addressed. This should be looked at from a public health perspective, and employers and policymakers should be made more aware of the rising problem.
Underemployment issues also have implications for those working in mental health, so that they can take someone’s job status into account during initial screenings and offer specialized support.
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Hanna Morris
Undergraduate Student of Psychological Sciences at Northern Arizona University
Trainee within the framework of the Intern Abroad Program
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References
- Allan, B. A., Kim, T., & Shein, B. (2022). Underemployment and mental health: A longitudinal study. Journal of Counseling Psychology, 69(5). https://doi.org/10.1037/cou0000610
- Feldman, D. C. (1996). The Nature, Antecedents and Consequences of Underemployment. Journal of Management, 22(3), 385–407. https://doi.org/10.1177/014920639602200302
- Johnson, G. J., & Johnson, W. R. (1996). Perceived Overqualification and Psychological Well-Being. The Journal of Social Psychology, 136(4), 435–445. https://doi.org/10.1080/00224545.1996.9714025
- Mousteri, V., Daly, M., & Delaney, L. (2020). Underemployment and psychological distress: Propensity score and fixed effects estimates from two large UK samples. Social Science & Medicine, 244, 112641. https://doi.org/10.1016/j.socscimed.2019.112641
- O’Brien, G. E., & Feather, N. T. (1990). The relative effects of unemployment and quality of employment on the affect, work values and personal control of adolescents. Journal of Occupational Psychology, 63(2), 151–165. https://doi.org/10.1111/j.2044-8325.1990.tb00517.x
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