Surveying a cross section of Australian businesses every two years to learn more about skills and workforce challenges across the economy, this report finds that low levels of literacy and numeracy are having a more pronounced effect on productivity in the workplace than reported in 2022.

The survey asks companies about both the external and internal factors driving their skills and workforce needs now and into the future. It also asks where the skills challenges or shortages are, and the steps businesses plan to take to develop or acquire the skills and capabilities they consider they need to succeed.

Key findings

• Low levels of literacy and numeracy continue to have an impact on both employees and employers in 2024, with 88% of companies affected by low levels of literacy and numeracy.
• The impacts of low levels of literacy and numeracy include time wasted, poor completion of work documents and reports, teamwork and communications problems, and staff lacking confidence and willingness to take on new work.
• 42% of companies require greater basic digital skills capabilities over the coming 12 months as digitally enhanced technology and communications become increasingly integrated into job tasks and functions across all occupations.

Recommendations

1. The Commonwealth, State and Territory governments should ensure that policy, programs and resourcing of language, literacy, numeracy and digital literacy:

• acknowledge that foundation skills are both an inclusion and a productivity issue; 
• recognise the importance of the vocational and workplace contexts in delivering foundation skills learning for adults, including appropriate funding; and
• include clear, achievable targets and resourcing to address low levels of literacy and numeracy, and digital literacy in the adult population and workplace;

2. The Commonwealth Government should undertake formative and summative evaluation of the Skills for Education and Employment (SEE) Program, including to ensure that vocational and workplace delivery are sufficiently incorporated in the program.