underutilisation
Underutilisation refers to the underuse of available resources in an economy or organization relative to their potential or planned capacity. It can involve labor, capital, land, or technology that is available but not being employed to its full extent.
Capacity utilisation is a common economic concept used to gauge underutilisation. It measures actual output as
Labor underutilisation encompasses several conditions: unemployment, underemployment (such as part-time workers who want full-time work), and
Causes of underutilisation include deficient demand, structural shifts in the economy, misallocation of capital, regulatory or
Implications include reduced productivity growth, higher unit costs, suppressed investment, and broader social effects such as
Measurement and policy responses: Economies monitor capacity utilisation and output gaps to assess slack and potential