The Economic Costs of Low Literacy

August 17, 2026

Low literacy costs the US economy over $300 billion in lost earnings, lower workplace productivity, higher crime, & more government assistance.

Low literacy costs the US economy over $300 billion a year in lost earnings, lower workplace productivity, higher crime, and more government assistance.

  • Reaching level 3 proficiency in literacy and numeracy improves a person’s economic, social, and educational outcomes.
  • 80% of people living in poverty read at level 2 or below.
  • Those with skills at level 1* or below are four times more likely to live in poverty.
  • Children born to parents with low-literacy skills are likely to have low skills themselves, perpetuating poverty and other socioeconomic issues.

Adult education works!

  • Increasing a person’s literacy skills by just one level makes them 50% less likely to live in poverty.
  • In adult education programs nationwide, 47% of adult learners made gains in skills over the course of a year…
  • More than 80% of our students made progress on individual goals in 2025/26.

* People reading at level 1 (the lowest level) can understand very short, simple sentences.

Learn more about adult literacy and skills on ProLiteracy’s Fact Sheet.

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