Low Literacy Rates Have Significant Economic and Social Costs According to Jim Kim, President of the World Bank, literacy in reading, math and science will be essential for the jobs of the future. Many young people today still lack these skills. The most recently available data shows that around 85% of the world’s adults have basic literacy, but there is a lot of variation across regions and age groups. So, it goes without saying that there is a critical need to improve the quality of education to prepare the next generation for a digitally demanding future, and enable more people to achieve their aspirations. TEXT BY SUSAN VROLIJK, BRAND & COMMUNICATION MANAGER, PWC
In order to help local communities solve these important problems, PwC, Stichting Lezen en Schrijven Bonaire and Fundashon Forma, recently teamed up to bring more awareness about low literacy and its social and financial consequences. As stated, reading, math and science are becoming increasingly essential in today’s labor force. However, there is a growing group that do not meet the basic qualifications. The ‘Algemene
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CURAÇAO BUSINESS
| NUMBER 4 | 2017
Rekenkamer’ in the Netherlands conducted a research about the illiteracy rate. This research shows that 2.5 million people in the Netherlands have difficulty with idiom, math or both. On behalf of Stichting Lezen & Schrijven Nederland, PwC calculated what the economic and social costs are related to low literacy levels in the Netherlands. Low literacy costs the Dutch society almost 1 billion euros annually. The financial consequences are considerably high, not only for the taxpayer, but also for the low-literates themselves. In the Netherlands, the consequences can be seen in the following areas:
Unemployment
A little less than half of all low-literates are unemployed. Often because they do not have enough skills to find a job. As a result, they miss a total of € 359 million a year: money that cannot be spent for the benefit of the economy.
Social Security
The group of unemployed low-income earners will receive a benefit. These benefits cost the government some € 88 million a year.
Tax
The unemployed low-skilled sector have no taxable income. The low-literates who work, often have a lower taxable salary. As a result, the government misses out on € 229 million in tax revenues a year.
