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Workplace Literacy Facts

Scope . . .
More than 20 percent of adults read at or below a fifth-grade level -- far below the level needed to earn a living wage. The National Adult Literacy Survey found that over 40 million Americans age 16 and older have significant literacy needs. The National Literacy Act defines literacy as "an individual's ability to read, write, and speak in English, compute and solve problems at levels of proficiency necessary to function on the job and in society, to achieve one's goals, and develop one's knowledge and potential."

Literacy and Work . . .
The U.S. Department of Labor estimates that illiteracy costs US business about $225 billion a year in lost productivity. American businesses are estimated to lose over $60 billion in productivity each year due to employees' lack of basic skills. Not surprisingly, costs stem from employee mistakes, injuries, absenteeism, tardiness, and missed opportunities for improvement. American businesses are estimated to lose over $60 billion in productivity each year due to employees' lack of basic skills.

About 20 percent of America's workers have low basic skills, and 75 percent of unemployed adults have reading or writing difficulties. Workers who lack a high school diploma earn a mean monthly income of $452, compared to $1,829 for those with a bachelor's degree.

The number of companies reporting skilled worker shortages more than doubled between 1995 and 1998, from 27 percent to over 47 percent. A survey of more than 300 executives found that, while 71 percent reported that basic written communication training was critical to meeting their workplaces' changing skills demands, only 26 percent of companies offered this kind of training. While 47 percent of the executives reported the need for workers to improve basic math skills, only 5 percent of companies offered basic math skills training.

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