When literacy thrives, our businesses thrive too

A week on from World Book Day and many parents and caregivers will still clearly recall the early morning scramble for costumes, last-minute crafting or the frantic search for something that vaguely resembled a book character.

Perhaps that was just me...

Beyond the costumes, though, World Book Day offered a useful moment to pause and think about reading and our relationship with books and literacy.

That reflection feels especially timely in 2026, which has been designated the UK’s National Year of Reading, a Department for Education initiative aimed at reversing the decline in reading for pleasure among both children and adults.

When we talk about literacy, the conversation often sits firmly in the education space.

But literacy also has a direct impact on workplaces and the wider economy.

Last year, as part of our Local Skills Improvement Plan work, we carried out research exploring communication skills and literacy across the region.

This work broadened the definition of literacy by looking at adult literacy competence in the workplace.

Using the Office for National Statistics Skills Supply dataset from 2024, the analysis considered capabilities that help people function effectively in modern workplaces.

These include written and reading comprehension, oral communication, communicating with colleagues and customers, analysing information, thinking creatively and building relationships.

Looking at literacy in this way reveals some stark realities in our region.

In the Tees Valley Combined Authority area, 56.3 per cent of adults are not meeting this minimum literacy competence baseline.

In the North East Combined Authority area, the figure is 53.7 per cent, compared with a UK average of 50.1 per cent.

In some places, the picture is even more challenging, with 59.9 per cent in Middlesbrough and 50.6 per cent in Sunderland falling below the benchmark.

This matters for businesses.

Employers often talk about skills shortages and workforce readiness, yet foundational capabilities such as communication, comprehension and analytical thinking can be hidden barriers that prevent people from progressing into higher-skilled roles, or sometimes into employment at all.

Improving literacy is not only about supporting future talent pipelines.

It is also about unlocking that potential in the teams businesses already have.

Many employees have the ability to progress but may lack the confidence or core skills needed to engage with training, digital systems or new opportunities.

Businesses are part of the civic fabric of our communities.

Supporting literacy through workplace learning, partnerships with schools or community initiatives helps create opportunity and build stronger local economies.

The National Year of Reading gives us an opportunity to think about literacy differently.

It is not only something that happens in classrooms or bedtime stories, but a set of skills that help people, workplaces and communities thrive.

When literacy improves, businesses benefit too.

And if anyone has tips for next year’s World Book Day costume planning, I am all ears.

Jessie Kelly-Baxter is policy manager at the North East Chamber of Commerce

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