This document is part of a project carried out for the Canadian Literacy and Learning Network (CLLN), exploring the relationship between literacy and income.

The authors analyzed data from the 2003 International Adult Literacy and Skills Survey and the 2005 to 2009 Surveys of Labour and Income Dynamics to determine the costs and savings associated with moving every Canadian with a Literacy Level 1 or 2 on the international literacy scale to Level 3, the proficiency level required to compete in global markets.

For the province of Nova Scotia, the authors estimate that a one-time investment of $987 million over five years would be required to raise the skills of all adults to Level 3. If that investment were made, earnings for the adults who receive literacy upgrading are estimated to rise by $2.79 billion, or an average of $3,686 per worker annually.

In addition, that investment in literacy could lead to savings of $96 million in employment insurance, workers’ compensation payments, and social assistance paid out in Nova Scotia.

There would also be benefits from reduced health costs, improvements in the quality of life, and growth in productivity, the authors point out.