Foundational or ‘workplace literacy’ skills — including communication, problem solving and digital competency — are becoming essential as employers struggle to find candidates who meet current labour market needs, says Alison Howard, executive director of ABC Life Literacy Canada.
“Nearly half of working-age Canadians struggle with low literacy, and that is a major barrier to full participation in a knowledge-driven economy.”
Six in 10 workers will require training by 2027, yet only half have access to adequate learning opportunities, according to a 2023 World Economic Forum report.
Low workplace literacy affects productivity, safety and employee well-being. Workers who feel unable to meet job expectations often experience higher stress and lower confidence. When foundational skills improve, employees tend to perform more effectively, feel more supported and are better positioned for advancement.
The business case is strong. The Canadian Apprenticeship Forum estimates that every dollar invested in skills training returns $1.38 in employer benefits through gains in accuracy, efficiency and safety. Employers that invest in literacy support often see stronger teamwork, improved time management and reduced turnover.
Certain employee groups — including newcomers, older workers, women and racialized workers — face greater barriers to accessing training. Flexible approaches, such as offering a mix of in-person and online sessions during paid hours, can help increase participation. Partnerships with community organizations can also extend the reach of workplace programs.
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With training demands expected to rise sharply before 2027, employers that prioritize foundational skills will be better positioned to build resilient, competitive workforces. Howard encourages organizations to assess current skill gaps, remove barriers to learning and integrate literacy development into long-term talent strategies.