American Economy,  Unemployment Rate

Poll Watch: Underemployment 21% or Higher In Nine States Including California

View underemployment data for every state

Despite the U.S. Bureau of Labor Statistics report today, Gallup raises another issue that may loom as more important – UNDEREMPLOYMENT.

Underemployed Americans are generally those who are not working to their desired capacity. Gallup considers respondents to be “underemployed” if they are either 1) unemployed or 2) employed part time (under 30 hours per week) and wish to be employed full time. The definition of unemployment used as a component of underemployment closely follows the government’s definition; respondents are “unemployed” if they don’t have a job, and are actively looking for work and are available to begin work. Gallup reports underemployment by state in the following ranges: 9.0%-11.9%, 12.0%-14.9%, 15.0%-17.9%, 18.0%-20.9%, and 21.0%-24.9%.

The nine states with underemployment rates of 21% or higher were relatively spread out across the country and include the nation’s largest state, California, as well as Michigan and Nevada, which have been hit by downturns in the automotive and gambling industries, respectively. Twenty-two states cluster in the underemployment range of 18% to 20.9%, relatively close to the 18.9% national average.

Here are the charts:

So, what does this mean?

Although the national unemployment rates are marginally decreasing, there is a large population of Americans that are not working enough. This is a measure of the real impact of the job situation and will have political implications – particularly in key battleground states as the campaigns for 2012 begin. Note the states of North Carolina, Nevada, Florida and Michigan are on the highest underemployment list.

Underemployment is a measure of the real impact of the job situation in the U.S., taking into account as it does workers who are out of and explicitly looking for work, as well as those who may be working part time but would like to work full time. The extent of underemployment in the U.S. varies widely by state, from relatively low levels in the energy states of North Dakota and Wyoming to quite high levels in a number of states, including the nation’s largest, California.