New York City, United States – The US underemployment crisis continues to worsen, with 8 percent of the population now underemployed, up 0.5 percent from 2024. BC Dodge, a marketing and communications professional, is one of the many affected, having been laid off from his job in late 2024 and struggling to find new employment.
Dodge has applied for over 350 jobs, but has only received six interviews. He eventually took part-time work in his field, but the pay is well below what he was earning before. This is a common experience for many underemployed workers, who are often forced to take on part-time or low-paying jobs to make ends meet.
The Economic Policy Institute has tracked the rate of underemployment since 1978 and reports that it has been on the rise. The impact of tariffs, increased healthcare costs, and a stagnating job market have all contributed to the growing number of underemployed workers. Jillian Hishaw, a personal bankruptcy lawyer in Charlotte, North Carolina, has seen an increase in inquiries about personal bankruptcy filings due to increased costs and a stalling job market.
Regional Context
The labour market is under strain, with layoffs reaching over 1.1 million in 2025, according to Challenger, Gray & Christmas. Job creation has failed to keep pace, with only 584,000 jobs added. This has resulted in more workers settling for underpaid or part-time work that does not meet basic living expenses.
Michele Evermore, senior fellow at the National Academy of Social Insurance, says that economic uncertainty driven by tariffs and developments in artificial intelligence has put businesses on pause, maintaining the status quo or scaling back. This has led to increased pressure on workers who are already struggling to make ends meet.
Official Statements
According to the Bureau of Labor Statistics, the number of people working part-time for economic reasons has hit 4.9 million. Long-term unemployment has also jumped 386,000 from this time last year to 1.8 million. The nonprofit sector has been particularly hard hit, losing 28,729 jobs in 2025.
US employers cut more than 108,000 jobs in January, while employers only announced intentions to hire 5,300 new roles for the month. Evermore notes that employers are not wanting to make any big investments right now, including increasing salaries to their workforce.
International Response
The underemployment crisis is not just a US issue, but a global problem. The World Bank and the International Labour Organization have reported on the growing issue of underemployment worldwide. The US is not alone in struggling to address this issue, and international cooperation may be necessary to find solutions.
Dodge and others like him continue to struggle to find viable employment. For now, the recognition of others stuck in the same situation is enough to keep them moving forward, submitting applications and waiting for a response that might not even come.
Source: Al Jazeera
