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Low literacy impacts personal growth and economic well-being

• There is a correlation between literacy and wage levels in Canada. A Statistics Canada study indicates that each additional year of education a person receives is worth 8.3 percent on their paycheque. Using an annual base salary of $30,000, this amounts to an additional $2,490 per year (Literacy, Numeracy and Labour Market Outcomes in Canada, Statistics Canada, 2001).
• The 9 million Canadian adults who have low literacy are about twice as likely to be unemployed (International Adult Literacy and Skills Survey (IALSS), 2005).
• A rise of one percent in literacy scores relative to the international average is associated with an eventual 2.5-per cent relative rise in labour productivity and a 1.5-per cent rise in Gross Domestic Product (GDP) per person (Literacy scores, human capital and growth across 14 OECD countries, Serge Coulombe, Jean-François Tremblay and Sylvie Marchand, Statistics Canada, 2004).

ABC CANADA believes that one of the keys to developing a competitive and stable economy is to ensure that Canadians are continually learning. One of our goals is to make Canadians aware of the opportunities that await them as they enter into a life of learning. We are also committed to connecting Canadians with literacy help in their community. Through ABC CANADA’s LEARN program, we provide contact information for literacy organizations in all Yellow Pages™ directories across Canada.

Why investing in workplace literacy matters

Improved literacy skills among employees bring about numerous benefits, both to the individual worker and to the organization. With a shrinking workforce, ever-increasing technological demands, unparalleled competition domestically and globally, and changes in the mix of the labour market - including increased immigration - the need for investment in literacy and essential skills has never been greater.

Key benefits of investing in workplace literacy:

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).

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).

Enhanced workplace efficiencies

• Greater understanding of job demands and procedures facilitates communication and enhances workplace efficiencies.

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 team work and improved labour-management relations (The Economic Benefits of Improving Literacy Skills in the Workplace, Conference Board of Canada, 2007).

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).

Higher productivity

• 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).

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) (Public Investment in Skills: Are Canadian Governments Doing Enough?, Serge Coulombe and Jean-François Tremblay, C.D. Howe Institute, 2005).