The correct answer is D) The person has a job but they are overqualified for it.
What does it mean when a person is underemployed?
Answer: "The person has a job but they are overqualified for it."
That is a common labor term to refer to an individual that has a job but he has more experience and skills to perform a better job. Then is when the term "underemployed" is used. This means that the employee can be placed in a much better position to maximize his talents, abilities, education, and past accomplishments.
Under difficult economic circumstances, skilled and experienced people have to accept different kinds of jobs although they are overqualified for those jobs because it is difficult to find a better job in the labor market.