Unemployed or Underemployed in 2010

So is it better to be unemployed or underemployed? The answer really depends on three conditions. The economy, the job and the person.

In the past, during a growing economy, I had met with active job seekers that honestly wanted more in their careers. Money was not a motivating factor for their job search. These job seekers wanted something more challenging, more responsibility and in some cases maybe even a management position. These job seekers were underemployed. Some of these job seekers would even welcome unemployment because unemployment would give them the time and motive to find their dream job. As a recruiter, if I found a passive candidate that felt underemployed, I knew I found a gem. So these candidates felt it was better to be unemployed than underemployed.

But today, March of 2010, things are different. The national unemployment rate is 9.7% (www.bls.gov) and the unemployment rate for professionals in information technology and accounting may be well above 10%. (I am guessing 15% to 20%) At least 75% of candidates I talk to are unemployed. Many have been unemployed for 6 months or longer and many have exhausted their unemployment benefits. Most of these people will, and should, consider any job in their field. I would also suggest to these people to not to get hung up on salaries, hourly rates, or if the job is contract verses permanent. Any job, like “any port in a storm for a ship” is better than no job.

My friend Paul emailed and stated, “I can tell you my thoughts! Underemployed is better.”

I asked, “Why?”

His reply, “As you know I had been unemployed for a 6 month period. It was the worst time ever. I am now employed with a company at a level I feel is below my skill level and is below my pay grade, but it is a job.”

He also added, “I feel that since I feel I am underemployed, I have the opportunity to learn a new skill set and strengthen my existing skills. Also if I can prove myself as a valuable employee, I can get noticed and move into another position that allows me to demonstrate my talents.”

Great answer! And that is why Paul is employed now and will eventually move into a more challenging and better paying position.

Lore told me, “That is a no-brainer: Underemployed definitely. Having been laid off from a 6-figure income, unemployed for the first time in my professional life…the emotional distress has been debilitating.”

Lore also adds, “I am currently working a $9/hourly rate, and thriving mentally in spite of the fact that I have to rely on my savings to pay for my basic needs. The constant exposure to customers has been uplifting, at the same time allowing me to "network"…”

Another great answer as Lore finds something good in the job she has.

Daniel wrote, “My job search has been going on for nine months now and it is very draining…If I was 'only' underemployed, I could at least take pride in my achievements. Being unemployed when you really want to work and contribute something is very frustrating.”

Daniel’s comments seem to be the sentiments of most of the people I have talked to recently. Being unemployed and looking for a job is not only hard work, daunting in a recession, costly, at times depressing, it is also boring and distracting. So the general consensus today is that being underemployed is way better than being unemployed. So join a user group, take chances, read employment articles that lend advice, attend free employment groups and of course stay tuned to this blog. Most of all, consider any job at any salary or rate. If you get that job work hard, do your best even if you feel underemployed.

And remember, most employers and companies will not care what you were making per hour in your last job. However they will want to know you did a good job, worked hard and added value like Paul and Lore.