Australian Industry Group research has sparked an historic agreement to boost the numeracy, literacy and digital skills of South Australians.  

The National Skills Agreement has unlocked more than $5 million in federal funding to lift foundation skills across the state, delivering greater access to adult community education (ACE) and fee-free foundation skills. 

In addition, the South Australian Government will invest another $9 million over three years for 22 organisations across Adelaide and regional South Australia to deliver more fee-free training places in ACE projects.  

The funding agreement was sparked by shock findings from an Australian Industry Group Centre for Education and Training (CET) survey, which revealed nearly 90 per cent of Australian businesses are suffering productivity issues owing to low levels of language, literacy, numeracy and digital literacy among workers. 

The Centre surveys a cross-section of Australian businesses every two years to learn more about skills and workforce challenges across the economy.  

The impacts of low levels of literacy and numeracy uncovered in our most recent survey, in 2024, include wasted time, poor completion of work documents and reports, teamwork and communications problems and staff lacking confidence and willingness to take on new work. 

Australian Industry Group CET Executive Director Caroline Smith said it was a great outcome that the Centre’s findings had sparked such significant action. 

“We applaud all efforts to lift foundation skills standards and outcomes through targeted investments to address language, literacy, numeracy and digital literacy,” Dr Smith said. 
 
“This week’s announcement by the Government of South Australia of its agreement with the Federal Government to boost adult literacy and numeracy skills is welcome, as it is expected to contribute to enhancing productivity and social connectedness in the workplace.” 

Australian Industry Group Head of South Australia Estha van der Linden also commended the state and federal governments for their historic initiative. 

“South Australian businesses have observed a concerning decline in literacy rates, which has impacted the workforce and overall productivity,” she added. 

Employers can tap into other initiatives, such as the national Skills for Education and Employment (SEE) Program, to help enhance their workforce’s literacy, numeracy and digital skills, especially through learning in a workplace context. 
 
Through the National Skills Agreement, the Federal Government has committed to partnering with states and territories to support Australians facing foundation skills challenges to access quality training that will help them participate in further education and training, employment and the broader community. 

Counting the cost: Addressing the impact of low levels of literacy and numeracy in the workplace  

Wendy Larter

Wendy Larter is Communications Manager at Australian Industry Group.

A former journalist for newspapers and magazines including The Courier-Mail in Brisbane and Metro, the News of the World, The Times and Elle in the UK, she is passionate about giving businesses a voice.