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Underemployment equilibrium
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===Overstaffing=== Overstaffing refers to the state when firms or other organizations that act as [[employer]]s in an economy are hiring more people than they need. This is much less common than overqualification. This redundancy invalidates unemployment rates as a signal for the existence of underemployment equilibrium. When firms are overstaffed, they can not achieve their maximum profit levels, which leads to undesirable social consequences such as low GDP growth. Organizations plagued by overstaffing, including not-for-profit organizations, cannot achieve maximum efficiency and their ability to [[value creation|create value]] according to their mission, vision and purpose will be hampered.<ref>Definition of overstaffed from the Cambridge Advanced Learner's Dictionary & Thesaurus Β© Cambridge University Press</ref>[6]
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