Home About News Opinion: Literacy is key to economic growth (Special to Financial Post)

Opinion: Literacy is key to economic growth (Special to Financial Post)

May. 21 2025

By Mélanie Valcin, President and CEO of United for Literacy

One in five Canadians struggle with basic reading, which means they struggle in the labour market, too. We must do better

Person placing a coin into a piggy bank sitting on a stack of books, with a chalkboard in the background showing math equations.

When we think of economic growth, we often focus on trade, innovation and technology. But underpinning it all is literacy. Being able to read, write and understand numbers and other information are basic to a resilient economy and inclusive society.

Last December, the Programme for the International Assessment of Adult Competencies (PIAAC) revealed that one in five working-age Canadian adults struggles with basic reading. These are parents trying to support their kids’ education. Workers interpreting safety instructions. Voters reviewing ballots. People wrestling with prescriptions, job applications or household bills.

Canada’s literacy numbers are above average globally, but the findings reveal a troubling truth: our literacy gap has widened over the past 10 years. Ignoring this reality risks deepening social inequalities and limiting Canada’s long-term prosperity.

I recently attended the 2025 World Literacy Summit in Oxford. Global leaders shared practical strategies to strengthen foundational skills. What stood out most were the real-world solutions already in place. For example, in Ireland, a 10-year national plan embeds adult literacy across sectors, including “Skills for Work” programs that offer on-site literacy and numeracy training during paid work hours. In Australia, integrates foundational skills into workforce and economic development through initiatives like the “Skills for Education and Employment” (SEE) program, which provides free language, literacy and numeracy training to job-seekers, delivered by community organizations and Training and Further Education institutes with input from employers.

These are not top-down interventions; they are evidence-based partnerships between governments, businesses and civil society. Canada has many strong examples, too, but they remain fragmented and lack the national coordination and investments needed to scale impact. The ability to read, write and problem-solve remains one of the most powerful tools we have to foster economic resilience. People without strong foundational skills are more likely to experience unemployment, low wages and poverty.

The consequences are not just individual. A 2018 study for the Canada West Foundation found that a one per cent increase in adult literacy could boost Canada’s GDP by over $50 billion and raise national productivity by five per cent. That is a clear and measurable return on investment. And beyond GDP gains there’s reduced strain on health and justice systems, higher civic engagement and increased intergenerational benefits — for when adults improve their skills, their children do better too.

The 2024 PIAAC results reveals that about 40 per cent of adults with low literacy had not completed high school. Roughly 25 per cent were newcomers whose first language is neither English nor French. Indigenous adults were also overrepresented, especially in northern, rural, and remote regions.

At my organization, we see the human side of these numbers every day. We meet individuals who are looking for meaningful support, not shortcuts. One of our learners told us: “I want to learn carpentry so I can fix things in my home. I want to help others discover books and feel better. I want to show others they can learn new things too.”

The most effective literacy programs are community-based, accessible, and grounded in everyday realities. We work with libraries, shelters, schools, settlement agencies and workplaces, meeting people where they are. We design programs with local partners to reflect each community’s needs and strengths. In Nunavut, for example, we partner with the territorial government to support individuals who want to work in the building trades sector. In Ontario, we collaborate with community health centres to deliver reading and digital literacy programs for adults facing both literacy and mental health challenges. In Manitoba, we help young parents who do not have their high school diploma to pursue the Canadian Adult Education Credential (CAEC), opening doors to further education and employment.

But community initiatives can only go so far. Governments have their role to play. Employers can embed essential skills into workplace learning. Business leaders and philanthropic partners can help scale innovation in the sector. Individuals can volunteer, donate or simply talk more openly about this issue.

We should not allow nearly 20 per cent of adults to remain on the margins of Canadian society. We need to make sure everyone has access to the most basic skill they need to participate fully, contribute meaningfully and benefit from the opportunities this country has to offer.

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