Numeracy and literacy problems lower pay

Workers who have problems with reading and writing often earn less than their colleagues, research has found.

The difficulties are common in all workplaces, but private sector workers are most likely to have problems with numeracy and literacy. Transport workers had the biggest literacy skill gaps and the highest levels of numeracy difficulties, which were also high in wholesale, retail, and other services areas.

The ESRI analysed the 2006 national employment survey, to which 50,000 workers responded. The authors say literacy difficulties could be understated as workers with acute problems may have been unable to complete the survey.

“People with literacy and numeracy issues often hide their problem, especially in the workplace where they fear ridicule or worse,” said Inez Bailey, director of the National Adult Literacy Agency, which commissioned the research, which found 1.5% of employees had a literacy difficulty.

* 2% reported a numeracy difficulty;

* 6% of those with no qualification higher than Junior Cert had literacy issues and 9% had numeracy difficulties;

* Literacy difficulties reduced a person’s earnings by 5%, but were only an issue in the private sector

There was no wage penalty for numeracy difficulties, except to a small degree for full-time workers and those in the lowest pay brackets.

Men were more likely than women to struggle with reading or maths, but the wage differential was greater for women with literacy problems. The negative wage impact was highest among full-time workers with literacy issues, who earn 8% less than peers.

Skills Minister Ciarán Cannon said the findings showed upskilling workers could benefit the economy.

But Ms Bailey said there had been more focus from policymakers on teaching literacy and numeracy at school and far less concern with those in work who did not attain the required levels in their initial education.

Meanwhile, the Department of Education has clarified the €17m being cut from its school transport budget is for 2010-2014 rather than just this year. The system carries 114,000 students daily and there were 13,500 new applicants for transport to second-level schools this year. Of those, 10,500 were eligible for transport to their nearest school, and 130 who were ineligible and sought concessionary bus places have not been accommodated.