Underutilization of labour force

Mass unemployment of human resources
Inadequate use of manpower

Nature

Mass unemployment is a complex matter in transient, suburban, developing communities. Large numbers of people are tending to move to the city to seek employment. Many of these newcomers (and many of the original residents as well) are not trained in the skills and methods necessary for a rapidly expanding, technologically oriented economy. In addition, the young people find, when they finish school that they are vying with hundreds of others for every available job in the city. Likewise, the young educated women are not meaningfully employed in the over-crowded families but cannot find openings in the job market. Family care structures ensure the support of these people, often "carrying" them for years in the hope that an opportunity will arise. These circumstances have produced a large force of unemployed urban residents while an extensive amount of necessary work remains untackled in their own home villages. This mass of disengaged and unproductive people not only means that something positive that could be done is not done, but has the negative effect of a drain both economically and psychologically on the community: the support of the unemployed leads to even more reduced family resources; and the inactivity and unused energy of the unemployed, and especially the young, fosters a mood of hopelessness.

Background

The underutilization of the labour force emerged as a global concern during the Great Depression, when mass unemployment and widespread skill mismatches became starkly visible. Post-World War II economic shifts and the rise of automation further highlighted persistent inefficiencies in labour deployment. International organizations, such as the International Labour Organization, began systematically tracking underemployment and labour market slack, recognizing its profound implications for economic growth, social stability, and equitable development across both industrialized and developing nations.

Incidence

Underutilization of the labour force is a persistent issue affecting both developed and developing economies, with the International Labour Organization estimating that in 2023, over 473 million people worldwide were either unemployed or underemployed. This phenomenon is particularly acute among youth and women, and is exacerbated by economic downturns, technological change, and mismatches between skills and available jobs, leading to significant losses in productivity and economic growth across regions.
In 2022, South Africa reported an expanded unemployment rate—including discouraged job seekers—of over 45%, highlighting severe underutilization of its labour force. This situation has contributed to rising poverty and social unrest in the country.

Claim

The underutilization of the labour force is a critical and unacceptable problem. Wasting human potential not only stifles economic growth but also breeds frustration, inequality, and social unrest. Every skilled individual left idle or underemployed represents a lost opportunity for innovation and progress. Ignoring this issue is a grave injustice to both individuals and society. Immediate, decisive action is essential to harness our workforce’s full potential and secure a prosperous future.

Counter-claim

The so-called "underutilization of the labour force" is vastly overstated and hardly a pressing issue. In reality, many people choose flexible or part-time work for personal reasons, and technological advancements naturally shift job demands. Obsessing over underutilization distracts from genuine economic progress and innovation. The labour market is adapting, not failing, and there’s no need to manufacture panic over a non-problem that resolves itself as society evolves.