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Investments glossary

Underemployment Equilibrium


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a good tooth, gets no gold

— Severin Meiland

Underemployment equilibrium is a condition where underemployment in an economy is persistently above the norm and has entered an equilibrium state. This, in turn, is a result of the unemployment rate being consistently above the natural rate of unemployment or non-accelerating inflation rate of unemployment (NAIRU) due to sustained economic weakness.

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