The OECD argues that “information processing skills” will be crucial for all adults. They are needed to succeed in a world of rapid technological advancement(OECD).

Technological change including automation and AI are transforming the very nature of work. Digitalization is transforming the way that basic skills are used. Completely new roles are being created. These require a mix of “information processing skills”. The OECD defines three core skills. Literacy enables people to process written information and to communicate effectively. Numeracy underpins most decision making and financial literacy. Complex data is becoming more and more common. Alone these are not sufficient. We all need to be able to problem solve in a world where we need to adapt to changing data and rules.

To assess the current level of skills the OECD performed a survey. It assessed literacy, numeracy and adaptive problem-solving skills of a sample was 160 000 adults aged 16-65. They were from 31 countries and economies, representing 673 million people. This survey took place in 2021/3, and the results were published a few months ago. It not only measured the skills. As well it looked at backgrounds, jobs, salary and life satisfaction. It wanted to validate the importance of these skills and to provide a benchmark.

These Skills Matter.

Skills are key drivers of employability and wages, over and above formal education. Higher numeracy scores mean a greater chance of being employed. 9% higher salary was acheived. There are similar relationships with literacy and problem solving. Someone with higher levels of skills will report higher levels of life satisfaction. They will report higher levels of perceived health. Skills are also closely related to societal benefits. People volunteer and are more trusting. Lower skilled individuals tend to feel disconnected from politics and democratic processes.

The Overall Skills Picture.

On average, 26% of adults are "low performing" in literacy. Scores were divided into five bands, and this was the lowest band. There are big country differences. Chile has the largest share of such low-performing adults (53%), while Japan has the smallest (10%). In numeracy, 25% of adults are low performing on average. Again, the share of low performing adults is largest in Chile (56%) and smallest in Japan (10%). In adaptive problem solving 29% of adults are low performing

The impact of Chronological Age.

All three skills were assessed across demographic variables. These included education, family background, age, gender and immigrant status. The OECD was focused on employment so that their samples went only to the age of 65. In most countries, adults aged 55-65 display the lowest average proficiency. This was across all domains. The exceptions are New Zealand and Sweden. There the lowest performing groups in numeracy or literacy were the 16- 24-year-olds. In adaptive problem solving the 55-65 age group is the lowest in every country.

Maintaining and Growing Skills with Age.

Researchers have studied the impact of age on underlying cognitive ability. They would not expect a significant decline in underlying ability under 65. Skills are different. They are not static. Over the course of a lifetime they can be acquired and developed, lose value, and even decline. Skills are influenced by the home, family, school and work environment.

Life expectancy is increasing. There are longer working lives, and the idea of retirement is becoming more blurred. Dependency ratios mean that older workers are becoming economically more important. The decline in these skills in the older age groups is important (See Newsletter #112 The Ageing Workforce). There is already evidence of older people being denied training opportunities and promotions. They are being denied the opportunity to refresh their skills. Retraining across the whole of life is going to become increasingly important.

The OECD has focused on these cognitive skills. Success at work may come from other individual characteristics. The ability to “fit in” and to work in a team. A simple measure of conscientiousness can often predict job success. To use the skills successfully needs other competencies and emotional intelligence. Older people have wisdom and emotional maturity. Do these information processing skills become les