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In this methodological study, the authors estimated a latent class model of youth underemployment using data collected through the Youth Survey of the National Longitudinal Surveys of Labor Force Behaviour in the United States from approximately 900 high school students who graduated in 1980. Then, they examined relationships between underemployment and gender, race, and high school program participation for the period from 1981 through 1990. Their findings demonstrate the methodological tractability of their measure of underemployment. The proposed measure adds value to the measurement of labour market outcomes of educational programs by providing a single summary labour force measure as a substitute for the myriad of measures commonly applied to summarise labour market outcomes.