What does uneconomic mean?
Uneconomic is an adjective meaning that something is not profitable, cost-effective, or worth the resources and expense involved. It commonly describes businesses, activities, industries, or public services whose costs cannot be justified by the benefits they produce. The word often carries a slightly formal tone and is especially associated with British economic and business writing, although unprofitable is more widely understood and more common in American English. Uneconomic does not necessarily mean that something is worthless or undesirable: a service may be socially beneficial while still being uneconomic in financial terms. The term is therefore useful for distinguishing financial viability from broader social value, efficiency, or usefulness. Its negation of economic also distinguishes it from merely inefficient: an uneconomic venture may lose money or fail to cover its costs altogether.
adjectiveNot profitable or cost-effective; not producing enough benefit to justify the resources or expense involved.
- Not profitable, cost-effective, or worth the expense; not producing enough benefit to justify its cost.
"The factory may provide jobs, but it is uneconomic to keep it running."
"The company closed the plant because it had become uneconomic to operate it."
"The minister argued that the service was socially valuable but uneconomic to provide."
Sometimes doing the right thing and doing the profitable thing are not the same thing.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does uneconomic come from?
Uneconomic was formed in English by adding the negative prefix un- to economic. The word economic derives through Latin from Greek oikonomikos, related to oikonomia, meaning household management, which is built from oikos, meaning house, and nomos, meaning law or management. The English formation belongs to the same root family as economy, economics, and economist.
Related word forms
How uneconomic is actually used
The word is formal and chiefly British; in American English, unprofitable is more usual. It is often used in economic, industrial, and business discussion.
Easily confused with uneconomic
Uneconomic is the standard chiefly British spelling, while uneconomical is a less common variant with essentially the same meaning.