The importance of literacy performance for the labour force British Columbia

1
The importance of literacy performance for the
labour force British Columbia

• Satya Brink, Ph.D.
• Director, National Learning Policy Research
• Learning Policy Directorate, HRSDC
• November 2007

2
Literacy and Numeracy are the foundation for the
Essential skills required for success in a
changing world

• Globalization Communities need to be
  competitive in terms of economic growth,
  population retention and social wellbeing.
• Human capital New imperatives to develop
  skills for the future and effectively use the
  skills of those already living and working in the
  community
• Technological change Community residents must
  be able to adapt to new technologies in the home,
  community and the work place.

• Essential Skills
• Reading text
• Document use
• Numeracy
• Writing
• Oral communication
• Working with others
• Continuous learning
• Thinking skills
• Computer use

3
International Adult Literacy and Skills Survey
(IALS)

• Conducted in 2003
• Population survey to measure the pool of
  national competencies
• Essential Skills included
• Assessed domains
• prose
• Document
• Numeracy
• Problem solving (thinking)
• Self reported skills
• Computer skills
• All provinces and territories
• 23,000 respondents, aged 16 and over to 65
  representing 25 million adults.

4
Introduction
Literacy proficiency the ability to understand
and employ printed information in daily
activities, at home, at work and in the
community. It is not about whether or not one
can read but how well one reads.
4 Domains, measure skills at five levels

• Prose The knowledge and skills needed to
  understand and use information from texts
  including editorials, news stories, brochures
  and instruction manuals.
• Document The knowledge and skills required to
  locate and use information contained in various
  formats, including job applications, payroll
  forms, transportation schedules, maps, tables,
  and charts.
• Numeracy The knowledge and skills required to
  apply arithmetic operations, either alone or
  sequentially, to numbers embedded in printed
  materials, such as balancing an account, figuring
  out a tip, completing an order form or
  determining the amount of interest on a loan
  from an advertisement .
• Problem Solving Involves goal-directed thinking
  and action in situations for which no routine
  solution procedure is available. The
  understanding of the problem situation and its
  step-by-step transformation, based on planning
  and reasoning constitute the process of problem
  solving. (Only four proficiency levels)

• Level 1 0 - 225 points
• Level 2 226 -275 points
• Level 3 276-325 points
• Level 4 326 -375 points
• Level 5 376 -500 points

Proficiency level for modern economy
and knowledge-based society
5
Why is literacy important for the work force and
the labour market?

• Literacy has an independent effect, over and
  above the impact of education and work experience
  on labour market outcomes.
• Literacy is highly correlated with employability.
  Those with high literacy have more stable and
  secure jobs that pay better.
• Literacy is an important competence for future
  training.
• Competence in literacy is associated with high
  demand skills such as the ability to use
  computers.
• Literacy has been shown to be a contributor to
  GDP growth. It has also been shown that there is
  a relationship between economic disparities and
  literacy inequities.

HRSDC, Learning Policy Directorate
6
Importance of literacy for the work force and
labour market
In Canada, literacy has a strong independent
effect on earnings, over and above the impact of
years of schooling and years of experience
Per cent increase in weekly earnings per increase
of 10 percentiles on prose, document, numeracy
and problem solving scales, and per increase of
additional year of schooling and work experience,
adjusted three least squares model, labour force
population aged 16 to 65, 2003
Source ALL/ IALSS, 2003
HRSDC, Learning Policy Directorate
7
Among Canadians of working age, those who are
employed have higher average proficiency scores
(Level 3) than those who are either unemployed
or who are not in the labour force
Importance of literacy for the work force and
labour market
Average proficiency scores by labour force
status, population 16 to 65, Canada, 2003
Level 3
Source IALSS, 2003
HRSDC, Learning Policy Directorate
8
The employed score higher regardless of the
province of residence
Distribution of literacy performance
Source IALSS 2003
HRSDC, Learning Policy Directorate
9
Those with higher average scores earn
more(population employed, aged 16-65)
Literacy performance- Earnings
Note Excluded those that had earnings less than 0
Source IALSS, 2003
HRSDC, Learning Policy Directorate
10
In Canada, those who participate in adult
learning activities have higher average scores in
all domains
Literacy performance- Adult training participation
Average scores in the four skill domains,
populations aged 16-65 receiving adult education
and training, Canada, 2003
Source IALSS, 2003
HRSDC, Learning Policy Directorate
11
Prose literacy proficiency is associated with the
use of computers for task-oriented purposes
Literacy performance-ICT
Use of computers for task-oriented purposes by
prose literacy level, mean index scores on a
scale measuring the intensity of use of computers
for task-oriented purposes, by prose literacy
levels, population aged 16 to 65, Canada, 2003
Source IALSS, 2003
12
Skill and macro-economic outcomes GDP per capita
and literacy
A. Relationship between GDP per capita and per
cent at prose literacy Levels 1 and 2,
population aged 16-65, 1994-1998
Source Scott Murray-Unesco
HRSDC, Learning Policy Directorate
13
British Columbia performance
Gross domestic product (GDP) per capita and
numeracy proficiency average score in 2003,
Canada and Provinces (population 16-65)
IALSS 2003, 16-65 years
Source IALSS 2003
14
THE RISING DEMAND FOR HIGHER LITERACY COMPETENCE
IN THE LABOUR MARKET

• A majority of jobs among the knowledge-intensive
  occupations which will grow rapidly in the future
  employ workers with literacy level 3 or higher.
• Though the demands in regional labour markets
  vary, most industrial sectors employ a high
  proportion of workers with literacy level 3 or
  higher.
• Most industrial sectors employ a high proportion
  of workers with numeracy level 3 or higher and
  this is more pronounced in the western regional
  economies.

HRSDC, Learning Policy Directorate
15
In Canada, the average scores for those working
in knowledge intensive jobs were well above level
3
Demand for literacy in the labour market
Average scores in prose, document, numeracy and
problem solving, population 16 to 65, by
industry, Canada, 2003
Level 3 and above for prose, document and
numeracy is 276 points and above and 301 points
is the cut-off for problem solving.
Source IALSS, 2003
HRSDC, Learning Policy Directorate
16
Knowledge-intensive sectors had higher
proportions of workers with document literacy
proficiency above level 3. All industrial
sectors had at least 40 of their workers at
level 3 or above in most regions
Demand for literacy in the labour market
Per cent of labour force populations (16-65) at
document literacy Levels 3 and 4/5, by type of
industry, 2003
Source IALSS 2003
HRSDC, Learning Policy Directorate
17
All industrial sectors had at least 40 of their
workers with numeracy proficiency levels of level
3 or above
Literacy performance- Industry
Per cent of labour force population at numeracy
levels 3 and 4/5, by type of industry, population
16 to 65, Canada and regions, 2003
Source IALSS, 2003
HRSDC, Learning Policy Directorate
18
Distribution of literacy proficiency in the work
force

• Canada is in the middle of the pack in literacy
  performance in international comparisons.
• 42 of working age Canadians have low literacy
  (Levels 1 and 2).
• The distribution of literacy performance has not
  improved in the last decade.
• Though most Canadians of working age are
  employed, those with low literacy have lower
  employment rates than those with higher literacy
  levels.
• Income is correlated with literacy levels, though
  there are some with low literacy who earn in the
  upper quintiles.

HRSDC, Learning Policy Directorate
19
Portrait of Canadians with prose literacy
proficiency below level 3
Literacy performance- Employment
Recent immigrants 10 years or less
Educational attainment was derived using variable
a4c
Source IALSS, 2003
20
In BC, about 41 of those at Level 1 are employed
compared to over 80 of those who scored at
Levels 4/5
Distribution of literacy performance
Per cent of employed population in each document
literacy level, population 16 to 65, Canada and
Regions, 2003
Source IALSS, 2003
HRSDC, Learning Policy Directorate
21
Workers in occupations requiring university
education had an average prose literacy score
that was 52 points higher than the average score
of workers in occupations requiring on-job
training only
Distribution of literacy performance
Average prose literacy score by required
educational skill level occupation, labour force
population excluding managers, 16 to 65, 2003
Percentage of population (excluding managers)
A19.0
B40.8 C30.1 D10.1
Source IALSS, 2003
HRSDC, Learning Policy Directorate
22
Concentration of low literacy among population
groups

• Low literacy is concentrated among workers in
  certain sectors. Almost two thirds are in 5
  sectors in each province.
• There is a high proportion of those with less
  than high school education among those who score
  at level 1 or 2.
• Immigrants whose mother tongue is neither English
  or French have proficiency levels 1 or 2.
• Aboriginal people have low literacy challenges.
  (Information is available only for the
  territories and for urban aboriginals in
  Saskatchewan and Manitoba)
• Persons with low literacy are found in every age
  group, however, even among youth in the prime age
  for further education or entry into the labour
  force, 40 score below level 3 in prose literacy.
• Literacy competency declines with age. There are
  also some indications of skill loss.

HRSDC, Learning Policy Directorate
23
Approximate population estimate of employees at
levels 1 and 2 in prose proficiency in
construction industry, Canada, 2003, population
16-65
Low literacy performance - Industry
Source IALSS, 2003
HRSDC, Learning Policy Directorate
24
Approximate population estimate of employees at
levels 1 and 2 in prose proficiency in
manufacturing industry, Canada, 2003, population
16-65
Low literacy performance - Industry
Source IALSS, 2003
HRSDC, Learning Policy Directorate
25
Approximate population estimate of employees at
levels 1 and 2 in prose proficiency in
manufacturing industry (continued), Canada, 2003,
population 16-65
Low literacy performance - Industry
Source IALSS, 2003
HRSDC, Learning Policy Directorate
26
Approximate population estimate of employees at
levels 1 and 2 in prose proficiency in Trade,
finance, Insurance, real estate and leasing
industries industry, Canada, 2003, population
16-65
Low literacy performance - Industry
Source IALSS, 2003
HRSDC, Learning Policy Directorate
27
Approximate population estimate of employees at
levels 1 and 2 in prose proficiency in health
care and social assistance industry, Canada,
2003, population 16-65
Low literacy performance - Industry
Source IALSS, 2003
HRSDC, Learning Policy Directorate
28
Approximate population estimate of employees at
levels 1 and 2 in prose proficiency in food and
accommodation industry, Canada, 2003, population
16-65
Low literacy performance - Industry
Source IALSS, 2003
HRSDC, Learning Policy Directorate
29
Subgroups - Immigrants
The literacy performance of immigrants was higher
among those with mother tongue the same as the
language of test (population 16-65)
Source IALS, 2003
30
Low literacy concentration
At every level of education and age group,
employed immigrants have lower average literacy
scores than employed Canadian born (aged 16-65)
Note Average score for employed immigrants aged
16-25 with university PSE is suppressed due to
small sample size.
Educational attainment was derived using variable
a4c
Source IALSS, 2003
HRSDC, Learning Policy Directorate
31
Background information of importance for IALSS
results British Columbia
Total population (2003) 4,154,600 Population
15-64(2005) 2,972,400 Population
/ square km (2005) 4.50 Population 65 and over
(2005) 586,800 Immigrants
(2001) 1,009,820
Gender Distribution (population 15-64,
2005) Males 1,486,000 Females 1,486,300
Population by mother tongue (Census
2001) English only 2,825,780
French only
54,400 Non-official languages only
939,945 English and French
6,780 Eng. and non-off language
39,525 French and non-off language 1,705
Population 15 years and over by highest level of
schooling (Census 2001) Less than high school
886,085 High school graduate 395,735
Trade Vocational cert. 99,020
College education 853,120 University 926,610
Source Statistics Canada
32
Proficiency varied across domains and population
age in British Columbia.
British Columbia literacy performance
Average proficiency scores, population 16 and
older and population 16 to 65, British Columbia,
2003
- Below level 3 (276)
Proficiency levels are defined differently for
problem solving
Source IALSS, 2003
33
The number of people (population 16 to 65) with
low literacy increased by 0.1 million from 1994
to 2003in British Columbia
British Columbia literacy performance
0.5 million
0.7 million
1.1 million
0.9 million
0.5 million
0.6 million
0.4 million
0.4 million
Total 2.3 million
Total 2.8 million
Sources IALSS, 2003 IALS, 1994
34
Low literacy performance
Main characteristics of people at level 1 and 2
in prose IALSS in British Columbia (population
16-65)

• Level 1
• 391,000
• 64 (248,000) were immigrants
• 49 were male and 51 female
• 46 were employed
• 15 were unemployed
• Education
• 45 less than high school
• 36 had completed high school
• 19 had post-secondary education
• Mother tongue
• 36 English and/or French
• 64 non-official language

• Level 2
• 590,000
• 32 (188,000) were immigrants
• 59 were male and 41 female
• 67 were employed
• 11 were unemployed
• Education
• 28 less than high school
• 38 had completed high school
• 34 had post-secondary education
• Mother tongue
• 69 English and/or French
• 31 non-official language

Using 5 plausible values Educational attainment
was derived using variable edlev3
Source IALSS, 2003
35
British Columbia performance
Impact of low numeracy in the population 16-65.
Total 10,681,000
Source IALSS, 2003
36
Aboriginal people tend to score significantly
lower than non-Aboriginal people in both prose
literacy and numeracy.
Subgroup-Aboriginal

• Non-Aboriginals residing in BC performed better
  than the national average of non-Aboriginals in
  both prose literacy and numeracy.
• The working age Aboriginals in BC scored 259
  points in prose literacy and 242 points in
  numeracy. These people were performing at level
  2.
• Their scores were slightly lower than the average
  score for Aboriginals in Canada, although the
  differences were not significant.

Note Estimates for Aboriginal people are not
representative in the provinces due to small
sample size.
Source IALSS, 2003
37
Low literacy concentration
Persons with low literacy are found in every age
group

• The proportions with level 1 literacy increase
  with age in Canada.
• The pattern is less clear for level 2 literacy in
  Canada.
• BC has one of the highest proportions of low
  literacy individuals aged 56-65.
• In almost all provinces about ¼ of persons with
  low literacy were in the 36-45 age group.

Low literacy by age, Canada
Percent of Canadians (16-65) below level 3 by
province and age group
Source IALSS 2003
HRSDC, Learning Policy Directorate
38
Literacy performance and employment
In British Columbia, people who were employed had
a higher average prose score than employed
Canadians
Source IALSS 2003
39
In British Columbia, about 57 of population aged
16 to 65 participated in adult training,
compared to 50 in Canada. 31 of population
aged 16 to 65 took courses, which was similar to
Alberta.
Literacy performance- Adult training participation
Percent of population receiving adult education
and training the year preceding the interview, by
type of participation, population 16 to 65,
Canada, provinces and territories, 2003
Source IALSS, 2003
40
In BC, individuals with a university degree
scored on average 64 points higher than those
with less than a high school education
Low literacy concentration
Mean prose proficiency scores by education level,
population 16-65, Canada and provinces, 2003
Educational attainment was derived using variable
a4c
Source IALSS, 2003
HRSDC, Learning Policy Directorate
41
Performance by Age, British Columbia
In Canada, prose literacy scores declined with
age In British Columbia, the decline was more
gradual.
Source IALSS, 2003
42
Low literacy performance
Concentration of people at levels 1 and 2 in
prose in British Columbia (IALSS population
16-65).
43
Concentration of people at levels 4 and 5 in
prose in British Columbia (IALSS population
16-65).
44
Low literacy performance
Concentration of people at levels 1 and 2 in
prose in Vancouver (IALSS population 16-65).
45
Concentration of people at levels 4 and 5 in
prose in Vancouver (IALSS population 16-65).
46
KEY MESSAGES
Conclusion

• Literacy is closely related to labour market
  outcomes
• The growth sectors of the economy demand higher
  literacy
• Low literacy is concentrated among workers in
  certain economic sectors
• Low literacy is concentrated among some
  sub-population groups with both personal and
  societal consequences

Contact information Satya Brink, Ph.D. Director,
National Learning Policy Research Learning Policy
Directorate Human Resources and Social
Development Canada Place du Portage, Phase IV, 3
Floor 140 Promenade du Portage Gatineau, QC K1A
0J9 Tel [phone] Fax [phone] Satya.Brin
k_at_hrsdc-drhsc.gc.ca
HRSDC, Learning Policy Directorate