National Institute for Literacy - Facts & Statistics

NATIONAL INSTITUTE FOR LITERACY ARCHIVED CONTENT

Corporate concerns

The Educational Quality of the Workforce National Employer Survey done in 1994 found the following:

32% of establishments said that less than or equal to 75% of their workforce are fully proficient,
21% believe that greater than 75% and less than or equal to 85% of their workforce are proficient,
27% believe that greater than 85% and less than or equal to 95% of their workforce are proficient, and
19% believe that more than 95% of their workforce are proficient.
(Zemsky, p3)

The AMA's study, "Corporate Concerns", found that companies ranked developing and improving workforce skills as the:

8th most important corporate concern out of a possible 25 issues in 2001 compared to
9th out of 25 in 2000 and 1999.
(American Management Association, p1)

Small business owners in the "Voices from Main Street: Assessing the State of Small Business Workforce Skills" 2000 survey stated that:

34% were extremely or very satisfied with the skills and education of employees and prospective employees.
(American Express, Small Business Services, p11)
65% said that improving the quality of workforce skills and education was very important.
(American Express, Small Business Services, p2)

The 2001 AMA Survey on Workplace Testing found the following facts:

11% of respondent firms tested all job applicants in math skills, compared to
10% in 2000 and
8% in 1999.
14% of respondent firms tested all job applicants for literacy skills, compared to
13% in 2000 and
11% in 1999.
35% of respondent firms tested some job applicants in literacy skills, compared to
37% in 2000 and
34% in 1999.
38% of respondent firms tested some job applicants in math skills, compared to
39% in 2000 and
37% in 1999.
41% of respondent firms tested some job applicants for basic skills, compared to
43% in 2000 and
41% in 1999.
34.1% of applicants tested by respondent firms lacked the skills necessary to perform the jobs they sought in 2000, compared to
38.3% in 1999 and
35.5% in 1998.
84.6% of the respondent firms did not hire skill-deficient applicants.
3.5% hired skill deficient applicants and assigned them to obligatory remedial training,
3% hired them and offered voluntary remedial training, and
8.2% took other action.
(American Management Association, p1)

The survey "Voices from Main Street: Assessing the State of Small Business Workforce Skills" found the following skills very important in 2000:

Productivity increases based on different factors:

Manufacturing sector:

10% increase in the average education of all workers* is associated with an increase of 8.6%
10% increase in hours results in an increase of 5.6%
10% increase in capital stock results in an increase of 3.4%

Non-manufacturing sector:

10% increase in the average education of all workers* is associated with an increase of 11%
10% increase in hours results in an increase of 6.3%
10% increase in capital stock results in an increase of 3.9%.
(National Center on the Educational Quality of the Workforce, p2)

*Equivalent to slightly more than one additional year of schooling.

In a study on the economic benefits of the workplace, 98% of employers reported the following results with Workplace Education Programs:

The EQW National Employer Survey, 1994, found that establishments were engaged in the following training activities:

Also in 1994:

Less than 20% of employers in the business services, retail, or construction sectors offered literary, numeracy, and basic education training
More than 50% of employers in utilities, finance, insurance, and primary metals offered this type of training.
(Lynch, p12)

The survey "Voices from Main Street: Assessing the State of Small Business Workforce Skills" found the following in 2000:

38% of small businesses participated in local workforce skills improvement programs.
40% of small businesses were aware of local workforce skills improvement programs.

Of the small businesses participating in local workforce skills improvement programs: