Research has shown that as literacy levels rise, so do levels of employment and self-sufficiency. The International Adult Literacy Survey (IALS), in its landmark study, found a direct correlation between labour force participation and literacy levels. People with lower literacy skills tend to be unemployed for longer periods of time and receive lower wages than those with higher literacy levels. They are more likely to rely on some form of social assistance or to cycle back and forth between welfare and low wage jobs (Statistics Canada: 1996, p. 8). According to the U.S. National Adult Literary Survey, The likelihood of being on welfare goes up as literacy goes down; conversely, the number of weeks worked during the year, average weekly wage and annual income all rise with literacy levels. (Quoted in D'Amico: 1997, iii).

The official unemployment rate for Manitobans at the lowest literacy level (Level 1) is nearly 26%, compared with a 4% unemployment rate for highly educated workers (Literacy Partners of Manitoba, Lets Talk About Literacy, Sept., 1999). Many labour market specialists say that actual unemployment rates are much higher, since they do not take into consideration the number of "discouraged workers": (those who have given up searching for jobs) or the number of underemployed workers: (those who would like full-time jobs but cannot find them) (Schellenberg and Ross: 1997).

Limited reading, writing, and math skills mean fewer opportunities for employment. Today's labour market demands higher literacy levels and academic credentials than ever before. Even manual and service sector jobs often require a minimum of Grade 10 education, as well as computer literacy, good communication and problem-solving skills, and customer relations. Human Resources Development Canada estimates that by the Year 2005, 40% of all job openings will require at least a four year university degree. Another 60% will require a high school diploma.⁵

Manitoba economists are beginning to speak of a severe "skills shortage": too few highly skilled workers for today's technologically-advanced workplace. According to a recent Canadian Federation of Business survey, approximately 52% of Manitoba member companies have trouble finding skilled workers compared with 39% in Alberta ("Manitoba Hard Hit by labour shortage" Brandon Sun: July 5, 1999).