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The demand for literacy skills in the workplace continues to rise as individuals face new technologies, new work processes, more advanced machinery, changes to regulations and new co-workers, all of which demand good or better levels of literacy. Workers must be able to understand what they have read and then apply that understanding to solve new problems. Unfortunately, almost half of working-age Albertans do not have the literacy skills required to perform most jobs in today's economy reliably and consistently. They are even less prepared for the jobs of tomorrow. Workers with low literacy levels, on average, work less productively, increase the need for do-overs, are involved in more workplace accidents, have poorer health and are more likely to be absent and are less adaptable to change. Research has shown that a one per cent rise in average literacy skills increases productivity by five per cent and GDP by three per cent - about $60 billion. While much of the solution to Alberta's pervasive and persistent literacy problem requires education systems to change what they do, how and when they do it and for whom, this will not be enough. The solutions to Alberta's literacy problem cross all life stages and all are required for Albertans to build and maintain skills they need to help themselves and the province flourish.

Unfortunately, many post-secondary students with learning problems may not be aware their learning difficulties could stem from weak literacy. They will struggle to learn the content, fail to learn key competencies and may drop out of their programs unless literacy challenges are assessed and addressed. Older adults can lose literacy skills if they do not maintain their literacy practice. The direct correlation between literacy levels and health care, volunteerism and citizenship make it important that older adults be encouraged to engage in activities which use literacy. Recommendations for post-secondary institutions, employers, and community organizations are provided.

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This report is one of a series that explore a number of the most important issues currently impacting the skills ecosystem in Canada. Whether it's new technology or global events driving the pace of change, Canadians are being asked to adapt in the workplace. Canada needs an essential skill framework that includes and looks beyond simple literacy and numeracy. It needs to include the 'soft skills' that industry leaders say are key to success and other essential skills that will help Canadians adapt, no matter what comes their way. Each needs to be measured and tracked to ensure Canadians remain globally competitive, and this paper argues that renewing Canada's Essential Skills framework is the place to start.

Key messages are: (1) it is estimated that half of working-aged adults are without the literacy skills required to perform well in the majority of jobs in the economy or to learn the skills required for new ones; (2) there is growing demand not only for technological skills, but also 'soft skills', such as resilience, emotional stability, flexibility and adaptability; and if skills and competencies are the new workplace 'currency', we need shared approaches to understanding how to define, evaluate and develop them; and (3) in spite of evidence of the positive impact and return on investment from literacy and essentials skills upgrading, the private sector is not stepping up; Canadians lag behind a number of countries in participation of many forms of adult education and literacy training; and a lack of employer investments in essential skills training is an important barrier for many adults with low literacy rates.

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Canada has one of the best-educated, most highly credentialed workforces in the world – but that doesn't mean it is the most competent. In a world where competencies are the new credentials, Canadian workers could become even better at their jobs if some lessons [were taken] from other jurisdictions. Slow adoption of competency frameworks is creating missed opportunities. Around the world, firms, industry associations, post-secondary institutions and governments are working to create competency frameworks that itemize the specific skills, knowledge and attributes that jobs require and the ways an individual can prove they have them. Canada lags behind. While a few firms and associations have begun this work, particularly in the mining and manufacturing sectors, overall this approach is still in its infancy compared to what has been happening in Europe. Canadian stakeholders can benefit from the experience of other countries. By learning what works, and knowing what practices to avoid, a Canadian system could be the answer to widely reported skills mismatches.

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Workplaces are changing quickly. Machines or algorithms are replacing some tasks, and new and changing jobs require additional technical skills. To keep pace with these changes in current and future jobs, the ability to keep learning is the most important basic skill for any job. Because literacy is the most important 'learning to learn skill,' Canada's workforce requires high levels of literacy. However, many Canadian workers have poor literacy skills. Canada's provincial, territorial and federal governments are rapidly turning attention to the skill gaps in the economy and looking for the best ways to build them in the working-aged population. The solutions they implement will not succeed unless they also incorporate building literacy skills. Improving the literacy skills of Canada's workforce - and putting them to full use - will close the skills gap and improve productivity.

Solutions to Canada's literacy problem include efforts to: Improve the literacy skills of graduates of K-12 and post-secondary programs; Understand the skills needs of employers and the skills proficiencies of the workforce through investigating the market for skills and building and implementing competency frameworks; embed literacy in all workforce education and training initiatives for all working-aged adults; stop skill loss in some workers through employers increasing the knowledge and skill intensity of their jobs, assessing the skills of job applicants with reliable tools, investing in literacy, numeracy and problem-solving skill upgrading and adjusting work processes to ensure skills gained are put to use; transform the federally funded Labour Market Programs offered in the provinces and territories; avoid reliance on 21st Century Skills as the 'silver bullet' that will end skills shortages; and mandate the new Future Skills Centre to include cognitive skills in its research.

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