Underemployment is a situation in which people seem to be employed but in actuality they are not.

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Detailed Solution

The above statement is True.
Underemployment is a situation in which people seem to be employed, but in actuality, they are not. In underemployment, workers are made to work less than their potential. Under the situation of unemployment, if we move out the extra workers, production would not suffer. For example, Roshini, who has a plot of land, works on her land along with her husband and five young children. Only three people are required to cultivate crops, but there are four extra people. If the extra four people are removed and placed in a factory, then not only will Roshni's family income also increase, but also the production of land would increase. Hence, the job is hidden in underemployment. It is also called hidden or disguised employment.

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