Low literacy impacts vast majority of businesses

Woman confused with paperwork. | Newsreel
Low literacy levels are holding back Australian business productivity. | Photo: L Juba (iStock)

Low worker literacy and numeracy is impacting the productivity of nearly 90 percent Australian businesses.

A survey by peak employer body the Australian Industry Group found 88 percent of businesses had productivity issues because of low levels of language, literacy, numeracy and digital literacy among workers.

Ai Group Chief Executive Innes Willox said the survey of more than 250 businesses, which employ almost 300,000 people, found employees were having trouble completing documents, reports and tasks and lacked the confidence and willingness to take on new work.

Mr Willox said the low levels of literacy and numeracy caused social inclusion issues and were holding back productivity.

“Productivity is the key to improving the everyday lives and pay packets for every Australian, and this report shows we need to get the basics right to improve it,” he said.

“We need to grasp the opportunity to remove barriers to people getting a job and for employers to keep improving staff skill sets to maximise productivity in the workplace.”

Mr Willox said 63 percent of business surveyed stated poor literacy and numeracy lead to poor completion of workplace documents and reports, 55 percent said the problem led to time wastage, 49 percent said it contributed to a lack of confidence and willingness among staff to take on new work, and 47 percent said it caused teamwork and communications problems.

“Ai Group’s research highlights the potential productivity uplift from increasing language, literacy and numeracy skills.

“Part of the solution is ensuring programs are accessible for employers through workplace and vocational delivery models.

“Government, education and training providers, industry and individuals need to work together to get this right.”

Twenty-seven per cent said low levels of literacy and numeracy could be a factor in workplace safety issues.

The survey also showed 42 percent of companies require greater basic digital skills capabilities to cope with more advanced technologies and digital capability within the business.

Read the full report: Counting the cost: Addressing the impact of low levels of literacy and numeracy in the workplace.