Functional illiteracy refers to the inability of an individual to use reading, speaking, writing, and computational skills efficiently in everyday life situations. Unlike an illiterate, a functionally illiterate adult could be able to read and write text in his native language (with a variable degree of grammatical correctness, speed, and style), but is unable like the former, even in his own cultural and linguistic environment, to perform such fundamental tasks as filling out an employment application, following written instructions, reading a newspaper, reading traffic signs, consulting a dictionary, or understanding a bus schedule. In short, when confronted with printed materials, adults without basic literacy skills cannot function effectively. This also refers to the inability of an individual to use the so-called information and communication technologies (use a personal computer to work with a word processor, a web browser, a spreadsheet application, or use a mobile phone) adequately and efficiently, or the difficulty of learning new skills in a continuing education environment. Those who are functionally illiterate are subjected to social intimidation, health risks, stress, low income, and other pitfalls associated with their inability.
The correlation between crime and functional illiteracy is well-known to criminologists and sociologists throughout the world. In the early 2000s, it was estimated that 60% of adults in federal and state prisons in the United States were functionally or marginally illiterate, and 85% of juvenile offenders had problems associated with reading, writing, and basic math.
Also in the United States, according to Nation's Business magazine, an estimated 15 million adults holding jobs at the beginning of the 21st century were functionally illiterate. The American Council of Life Insurance reported that 75% of the Fortune 500 companies provide some level of remedial training for their workers.
A Literacy at Work Study published by the Northeast Institute in 2001 found that business losses attributed to basic skill deficiencies run into billions of dollars a year due to low productivity, errors, and accidents attributed to functional illiteracy.
Sociological research has demonstrated that countries with lower levels of functional illiteracy among their adult populations tend to be those with the highest levels of scientific literacy among the lower stratum of young people nearing the end of their formal academic studies. This correspondence suggests that a contributing factor to a society's level of civic literacy is the capacity of the schools to bring students near the bottom to the basic level of cognitive proficiency, that the key link between formal schooling and civic literacy lies in the capacity of schools to assure the students attaining the functional literacy required to comprehend the basic texts and documents associated with competent citizenship.
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