Workplace Literacy Facts

Literacy is often measured on a prose and document literacy scale of 1 to 5. Level 3, equivalent to high school completion, is the desired threshold for coping with the rapidly changing skill demands of a knowledge-based economy and society (International Survey of Reading Skills (ISRS), 2005).

Four out of 10 adult Canadians, age 16 to 65 - representing 9 million Canadians - struggle with low literacy. They fall below level 3 on the prose literacy scale (Adult Literacy and Life Skills (ALL) Survey, Statistics Canada and the Organization for Economic Co-operation and Development, 2005).

Approximately 72 per cent of these Canadians below Level 3 are employed (International Adult Literacy and Skills Survey (IALSS), 2003).

Approximately 53 per cent of unemployed Canadians have scores below Level 3. Lower-skilled adults tend to work fewer weeks, experience more and longer periods of un¬employment, and earn lower wages when they are working (International Adult Literacy and Skills Survey (IALSS), 2003).

There are 972,000 Canadians at Level 1, and 1.6 million at Level 2, who are either unemployed or employed but earning a low income (International Adult Literacy and Skills Survey (IALSS), 2003).

Individuals with Level 1 and 2 skills are at the most risk of losing their current jobs as a result of technological, process or organizational change, including job losses due to outsourcing. It is unlikely that these individuals have the reading and numeracy skill to cope with the majority of jobs that will replace the jobs that are lost (International Adult Literacy and Skills Survey (IALSS), 2003).

Benefits of Workplace Literacy

Higher productivity

Low literacy levels cost businesses $2.5 billion annually in lost productivity (Literacy Alberta, 2007).
79% of respondents in a Conference Board of Canada study report that they have observed increased productivity in their workplaces because of their basic skills programs (The Economic Benefits of Improving Literacy Skills in the Workplace, Conference Board of Canada, 2007).
According to the study The Impact of Basic Skills Programs on Canadian Workplaces, 66% of respondents saw reduced error rates in people’s work. Additionally, 85% of respondents saw increases in the quality of people’s work and 73% saw increases in work effort.
In the same study, 94% of respondents reported that basic skills programs positively influenced participants’ reading, writing and oral communication skills in ways that benefit the workplace (The Impact of Basic Skills Programs on Canadian Workplaces (2nd ed.), 1997).
An extra year of schooling can raise productivity by between 4.9% and 8.5% in the manufacturing sector, and between 5.9% and 12.7% in the services sector (Canadian Council on Learning, 2007).
According to the Canadian Apprenticeship Forum, on average, a one-dollar investment in training returns a benefit to the employer of $1.38.

Increased workplace safety

The understanding of safety regulations and procedures leads to fewer injuries, which in turn leads to reduced insurance costs and less employee downtime.
In a Conference Board of Canada study, 82% of respondents associated increased health and safety with their workplace’s basic skills program (The Economic Benefits of Improving Literacy Skills in the Workplace, Conference Board of Canada, 2007).
In 2002, the average lost-time injury in Ontario cost $59,000 and in 2006, the cost was approximately $98,000 (Workplace Safety and Insurance Board).

Enhanced workplace efficiencies

Greater understanding of job demands and procedures facilitates communication and enhances workplace efficiencies.
In a workplace literacy study, 90% of employers indicated that employees who took basic skills programs had an increased ability to work independently (The Impact of Basic Skills Programs on Canadian Workplaces (2nd ed.), 1997).

Increased competitiveness

Enhanced literacy skills prepare employees for managerial and technological changes in the workplace, and position the company for greater competitiveness.

More vibrant and engaged workforce

When literacy skills are enhanced, employees are better suited to meet the demands of the job and better prepared to assume greater responsibilities and seek promotion.
An organization active in offering education and employment opportunities is more likely to retain its employees.
Employees who participate in literacy and essential skills programs increase their level of self-confidence, acquire new skills, are better prepared to seek promotion opportunities, and believe that they are valued by their workplaces.
A Conference Board of Canada report also indicates that employees are more inclined to take ownership of their work, become more effective decision-makers and assume a more engaged and participative role within the organization. Other benefits include enhanced teamwork and improved labour-management relations (The Economic Benefits of Improving Literacy Skills in the Workplace, Conference Board of Canada, 2007).
According to another study, 85% of respondents reported that basic skills programs enhanced participants’ ability to work within a team-based model. 63% of respondents reported that basic skills programs help workplaces to retain employees over time (The Impact of Basic Skills Programs on Canadian Workplaces (2nd ed.), 1997).

More competent use of technology

In a Conference Board of Canada study, 87% of respondents said that programs impact positively on participants’ ability to use workplace-based technology (The Economic Benefits of Improving Literacy Skills in the Workplace, Conference Board of Canada, 2007).

Bolstered Canadian economy

A more literate workforce boosts productivity: The C. D. Howe Institute reports that a 1% rise in a country’s literacy level, relative to the international average, is associated with an eventual 2.5% rise in labour productivity and a 1.5% rise in the per capita Gross Domestic Product (GDP). This 1% increase in literacy rates would boost the national income by as much as $32 billion (Public Investment in Skills: Are Canadian Governments Doing Enough?, Serge Coulombe and Jean-François Tremblay, C.D. Howe Institute, 2005 and Canadian Labour Congress, 2007).
Differences in average adult literacy levels explain as much as 55% of long-term differences in the long-term growth rate of GDP per capita as well as productivity growth at the national and international level. (The International Survey of Reading Skills (ISRS), 2008).

Enlarged employment opportunities

Greater literacy and numeracy skills improve chances of individuals finding work and attaining promotions on the job.
Workers with higher literacy skills earn more income, are less likely to be unemployed, experience shorter periods of unemployment, and are more likely to find full-time rather than part-time work (International Adult Literacy and Skills Survey, Statistics Canada, OECD, 2005).