A recent survey of companies in the manufacturing, construction, mining and service industries found that 99% reported low levels of literacy and numeracy that affected their business. This confirms the OECD’s Programme for the International Assessment of Adult Competencies (PIAAC) research, that found that 53.5% of Australians had numeracy scores that were below-proficiency level and a third had literacy skills that are low enough they make them vulnerable.

 Workplace literacy and numeracy can impact your business

At an individual level, low numeracy and literacy skills can have a negative effect on self-esteem. Many take reading, writing and the ability to apply basic mathematical skills as a given. This can be particularly stressful for someone who struggles with them, particularly in a demanding workplace. If an employee is grappling with low literacy and numeracy skills, it can have a ripple effect across the organisation.

Literacy and numeracy are foundational skills. They’re crucial building blocks to a range of other capabilities from analysis to communication. Employees who have low literacy and numeracy skills may make critical errors in documents that can affect business productivity. It can also inhibit effective communication between team members which can lead to efficiencies at one end of the spectrum or occupational hazards at the other.



The overall impact of low literacy and numeracy can be significant, with international research finding that just a 1% increase in literacy skills can increase GDP by 1.5% and labour productivity by 2.5%

The digital age demands new skills

As technology takes over every aspect of work, the digital skills that businesses require also demand higher literacy and numeracy levels. Employees with STEM and technical skills are in high demand. Without them a business may be left behind.

The problem is that potential employees with these skills are in high demand and businesses are struggling to recruit people into roles, particularly in the trades, business automation, big data and artificial intelligence. In fact the survey found that 75% of businesses reported skill shortages, up from 49% the year before.

Employers can overcome this by retraining or upskilling their existing staff. At the base level, investing in language, literacy and numeracy programs can help bridge the existing gaps. But many businesses also need to build higher level skills so that they can meet the widening skill gaps. This can be achieved through various methods including partnerships with tertiary and vocational training organisations.

With skill gaps growing, employers can also overcome issues with literacy and numeracy by partnering with an agency who can help them find people with the right skills for their business.