When a worker is employed for fewer hours than they are capable of and willing to work, resulting in underutilization of their labor capacity, this specific condition is termed as ___ unemployment.

Answer: underemployment

Underemployment is a severe issue in developing economies like India, often manifesting visibly in the gig economy or invisibly in agriculture (disguised unemployment). It means the economy is not generating enough full-time, productive jobs, leading to lower aggregate wages, reduced purchasing power, and wasted human capital potential.