Employment status refers to an individual's current situation regarding their job or work. It can include categories such as employed, unemployed, or underemployed. Employed individuals work for a company or are self-employed, while unemployed individuals are actively seeking work but do not have a job. Underemployed individuals may work part-time or in jobs that do not fully utilize their skills. Understanding employment status is important for various reasons, including eligibility for benefits and economic analysis. For example, government agencies often track employment status to assess the health of the economy. Accurate data on employment status helps inform policies and programs aimed at improving job opportunities and workforce development.