A leap of one million in underemployment rates is plunging families across the country into poverty, according to a shock report released yesterday.

The rapid rise means that 3.2 million people are now underemployed — characterised by a highly skilled workforce working part-time and for low pay, with the million-strong increase having taken place since the recession in 2007.

And the TUC analysis warns that underemployment will not return to pre-recession levels until 2023.

“Millions cannot get the full hours of work they want and all too often it means families end up stuck with poor living standards,” said TUC general secretary Frances O’Grady.

“Underemployment is still much higher than it was before the recession, so we have a long way to go to create enough of the full-time jobs that people want and need.

“We already had too much underemployment before the recession, so we need to reduce it much faster.”

Looking at all types of underemployment the analysis lays bear the true scale of the problem, including how many workers want more hours in their existing jobs and the number working part-time who want to work full-time.

“The government must address labour market failures that have left us with too many poor-quality jobs, and not enough decent jobs with full-time hours,” added Ms O’Grady.

“We need to make sure that people who want more work have the opportunity to do it.”

The study was published ahead of new figures on Wednesday which are expected to show a continued fall in unemployment.

Meanwhile separate research by the Joseph Rowntree Foundation, released at the same time as the TUC study, shows eight million families are living on less than the minimum needed to cover their household budget.

The foundation identified a widening gap in income “inadequacy” — not being paid enough to cover basic bills — with lone parents and single breadwinner families being hardest-hit.

Around 71 per cent of lone parents survive on inadequate incomes, up from 65 per cent since the 2008/9 recession, it found.

Cuts to benefits and tax credits and a real-term fall in wages caused the growing gap between the income families need and what they get, researchers said.

Foundation policy and research manager Katie Schmuecker said: “There has been a turnaround in who is suffering most. This year’s report shows a rapid widening of the gap between the incomes and costs of families with children.”

The research group called for changes to universal credit, more employers to pay the living wage and reforms to make sure people on low incomes don’t pay more for essential goods and services.