What term describes individuals employed in jobs below their skill level?

The term that describes individuals employed in jobs below their skill level is "underemployment." Underemployment occurs when people are working in roles that do not fully utilize their skills, education, or experience, often leading to job dissatisfaction. This situation can arise for several reasons, such as economic downturns, changes in industry demand, or personal circumstances that limit one's job opportunities.

People who are underemployed may have advanced degrees but find themselves in positions that do not require their level of qualification, which can impact both their economic well-being and personal fulfillment. Underemployment is a significant issue because it highlights the gap between a person's potential and their actual job situation, which is particularly relevant in discussions about labor markets and economic health.