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Functional illiteracy is the inability to read or write well enough to accomplish everyday tasks in modern society. It is different from pure illiteracy, which is the inability to read or write at all. Functional illiterates may have basic reading and writing ability but cannot carry out more advanced tasks such as operating a computer, filling out a job application or completing a tax form. A 2007 study estimated that 860 million people worldwide are functionally illiterate.

Major U.S. corporations such as Ford and Motorola have sponsored remedial reading programs to bring their employees up to a functional level of literacy.

A 2003 study by the U.S. Department of Education estimated that 14 percent of adult Americans are functionally illiterate. A similar study in France showed a 9 percent rate of functional illiteracy.