TD Bank has published a report calling for Canada to redouble efforts to improve literacy, to shore up its standing in the global economy.

The report, which was authored by TD’s deputy chief economist, Craig Alexander, argues that many individuals lack the adequate literacy skills to fully participate in the economy and civil society. It notes that poor youth literacy is related to high school drop out rates, long-term unemployment and higher crime rates. Poor literacy in English and French amongst immigrants severely hampers the ability of many new arrivals to integrate into Canadian society and its economy, it said.

TD estimates that a 1% increase in literacy rates could boost the national income by as much as $32 billion, noting that an economic payoff of more than $80 billion could be achieved if all Canadians reached the desired level of literacy.

The report notes that almost four in 10 youths aged 15 have insufficient reading skills; while more than two in 10 university graduates, almost five in 10 Canadian adults and six in 10 immigrants have inadequate literacy skills in English or French.

It stresses that these troubles are concentrated in specific regions and among various populations, which can accentuate and entrench economic disparity. Francophones and aboriginals scored lower than the national average in literacy scores. Significant regional differences were also cited. Literacy levels tend to decline from above national average in western Canada to below national average in eastern Canada.

The report recommends that efforts focus on youth literacy, particularly at the early childhood education, primary and secondary levels. TD suggests a more coordinated and complementary approach could come about if the federal government took responsibility for national literacy standards, while the provincial governments are explicitly responsible for program delivery. The private sector should also be encouraged to offer employees the opportunity to develop language skills and more basic abilities that could reinforce or bolster their literacy, it said.

“Our place in the world is increasingly defined by its intellectual, rather than political, boundaries,” said Frank McKenna, deputy chair of TD Bank Financial Group and TD’s literacy champion. “High levels of literacy ensure that we all have the ability to comprehend, compute and convey information and ideas necessary to support our future prosperity. Improving literacy levels is a national imperative.”