Literacy, numeracy and problem solving are essential to function in today’s world. For individuals, they are the key to realizing their full economic and social potential and the foundation upon which they acquire additional knowledge and skills throughout adulthood. They are strongly associated with individual outcomes and enable people to participate in their communities, make wise consumer decisions, and construct social networks.
Proficiency in literacy, numeracy and problem solving enhance the capacity of individuals to participate in lifelong learning and to improve productivity. In a global economy, a highly skilled population is an asset and fundamental to economic growth. Factors such as globalization, the impact of new technologies and the move to a knowledge economy have led the occupational composition in Canada to shift towards more highly skilled occupations requiring higher levels of education. A knowledge economy requires workers who can adapt quickly to the changing skills requirements in the labour market.
The social implications of literacy, numeracy and problem solving are no less important. Understanding the link between these competencies and civic participation, for example, has important implications for building strong communities and social institutions. Inadequate proficiencies in literacy, numeracy or problem solving increase the risk of exclusion for particular societal groups.
Canada, as well as many other countries, invests heavily in compulsory education in order to build a strong foundation of literacy, numeracy and problem solving. Measuring the distribution of these competencies in the population can assist individuals, employers, communities and governments in making decisions that are crucial to achieving high rates of economic growth, reducing inequalities in economic and social outcomes, and promoting social inclusion.
Previous international research has already shown that most of the differences in the level and distribution of skill can be explained by social background, education and a range of factors that reflect how adults lead their lives. Further, differences in the level and distribution of skill have been found to be associated with large differences in outcomes in multiple facets of life – work, education, home and the community. And finally, large differences in skills exist both within and between countries.