Fully 92 percent of jobs across all U.S. industries require some level of digital skills, the National Skills Coalition estimated in a 2023 study. While IT or IT-related jobs have always relied on workers’ ability to use computers and digital technologies, across industries today’s workers may be asked to use and interact with a broad range of digital technology tools. For instance, restaurant workers use virtual reality training to learn food safety protocols, health-care providers create electronic patient records, and assembly line workers use augmented reality to learn how to use robotics. Digital technology in the form of online learning platforms is also increasingly used to obtain credentials and training to advance educational and career coals.
Box 1. PIAAC and Its Uses to Study Skills by Immigrant Generation
The Programme for the International Assessment of Adult Competencies (PIAAC) was developed by the Organization for Economic Cooperation and Development (OECD) and is used to survey adults in more than 40 countries, mostly OECD members. The assessment, funded and overseen by the U.S. Department of Education’s National Center for Education Statistics, employs advanced psychometric tests to directly assess U.S. adults’ ability to apply their knowledge to achieve personal or professional goals and accrue further learning and skills.
PIAAC assesses three skills domains: literacy, numeracy, and problem solving in technology-rich environments (or digital skills for short). In the United States, all tests were done in English; as a result, they may not fully capture the capabilities of immigrants who are still learning English.
In addition to direct testing of skills, PIAAC’s background questionnaire collects information on a wide range of demographic and socioeconomic characteristics, including participants’ age, immigrant generation, educational attainment, and postsecondary program enrollment (including vocational). Coupled with directly assessed foundational skills, PIAAC data offer a unique opportunity to explore how skills relate to enrollment and how this relationship varies by immigrant generation.
To boost the sample size and therefore to improve the quality of estimates by immigrant generation among U.S. high school degree holders between ages 18 and 34, the findings presented in this commentary draw from Migration Policy Institute (MPI) analysis of a combined 2012/2014/2017 PIAAC dataset. The researchers used the PIAAC data to determine skill levels of young adults by immigrant generation with the immigrant-origin young adults being the primary target population for education and workforce development programs.
The immigrant-origin population is comprised of those born outside the United States (i.e., first-generation immigrants) and those born in the United States with at least one immigrant parent (i.e., second generation). The skill levels of immigrant-origin young adults are compared to those of their U.S.-born counterparts from U.S.-born families (i.e., third-and-higher generation). The analysis here is focused on PIAAC participants who had a high school diploma or its equivalent but had not obtained a postsecondary credential at the time of the survey.
While demand for technologically savvy students and workers is growing, about one in four U.S. adults ages 16-65 lack digital skills, according to the Programme for the International Assessment of Adult Competencies (PIAAC), the international benchmark of adult skills that was last carried out in 2017. This means that they had either limited prior computer use or could do only basic tasks such as highlight text on the screen or sort emails into relevant folders. The PIAAC test also assessed two other skillsets—literacy and numeracy (see Box 1). Twenty-nine percent of U.S. adults lacked numeracy skills and 19 percent lacked literacy skills. U.S. adults scored lower in numeracy and digital skills than the international average and roughly at the same level on literacy, but across all three domains the United States scored lower than countries such as Finland, Japan, and the Netherlands.
These results have concerned U.S. educators and policymakers alike, given the retirement of the large baby boomer generation and the projections of slowed labor force growth. As a result, they are asking what level of skills the new generation of workers, U.S.-born and immigrant alike, have. The inclusion of immigrants—and their U.S.-born offspring—in discussions of U.S. workers’ preparedness for a rapidly evolving labor market has only grown in importance since the immigrant-origin population is expected to drive all net growth in the future labor force. Already, immigrants and their U.S.-born children (known as the immigrant-origin population; see Box 1) have accounted for the entire growth of the prime working-age population since 2000, and have seen their share of all U.S. workers rise to 29 percent in 2023, up from 19 percent in 2000.
Young U.S. Adults’ Skills by Immigrant Generation
The PIAAC analysis shows that young adults (defined here as high school degree graduates ages 18 to 34) are less likely to lack digital skills than U.S. adults overall, although skills vary by immigrant generation. Only 7-8 percent of second and third-and-higher generation young adults lacked basic digital skills. Seventeen percent of first-generation immigrant young adults scored low on the digital skills test (see Figure 1). The largest shares (45-49 percent) of U.S. young adults across immigrant generation scored at middle levels of proficiency followed by those who have high proficiency (38-44 percent).
Figure 1. Share of U.S. High School Degree Holders (18-34) by Immigrant Generation and Digital Skills Proficiency Levels
Note: Refers to adults 18-34 with a high school diploma/equivalent only. Source: U.S. Department of Education, National Center for Education Statistics (NCES), Program for International Assessment of Adult Competencies (PIAAC), 2012/2014/2017 Restricted Use File Data.
At the same time, the PIAAC assessment clearly shows that a significant share of young adults (regardless of immigrant generation) lacks basic numeracy and literacy skills. For example, about 40 percent of immigrants lacked basic numeracy skills, while 25-29 percent of their second- and third-and-higher generation counterparts exhibited low numeracy levels (see Figure 2). About 12 percent of third-and-higher generation, 16 percent of second-generation, and 32 percent of immigrant young adults had weak literacy skills.
Figure 2. Share of U.S. High School Degree Holders (ages 18-34) by Immigrant Generation and Numeracy and Literacy Proficiency Levels
Note: Refers to adults 18-34 with a high school diploma/equivalent only. Source: U.S. Department of Education, National Center for Education Statistics (NCES), Program for International Assessment of Adult Competencies (PIAAC), 2012/2014/2017 Restricted Use File Data.
Across all demographic groups, young adults displayed markedly lower numeracy skills compared to literacy and digital skills, a trend consistent with previous PIAAC studies that examined different age groups of U.S. adults. This is a concerning finding, particularly considering that these individuals have successfully graduated from U.S. high schools and because numeracy skills are found to have a more significant impact on economic outcomes than other tested skills.
Challenges and Opportunities to Credential Attainment
High-quality and market-valued degree and nondegree postsecondary credentials, including two- and four-year college degrees, vocational training certificates, and professional licenses, offer a direct path to economic and social mobility. PIAAC shows that many U.S. high school graduates, immigrant and non-immigrant alike, lack basic literacy and numeracy skills. These skills are important for pursuing further education and training. While there are many barriers to obtaining valuable credentials, such as financial constraints, competing family and child-care responsibilities, and mental-health challenges—and for immigrants additionally these include language barriers and lack of legal status—this study shows that high school graduates may have an asset: their digital skills.
Use of online-learning platforms and content on those sites increased during the COVID-19 pandemic—a trend that will continue, given significant public and private investments. The $2.75 billion Digital Equity Act passed in 2021 provides funding to help states promote access to digital technology and digital skills development.
PIAAC results show that most U.S. young adults with a high school education, those of immigrant origin included, have at least basic proficiency in digital skills. These skills could and should be leveraged to help these young adults improve their literacy and numeracy skills and obtain postsecondary credentials.
Still, as rapidly evolving artificial intelligence technologies are poised to transform the U.S. labor market across industries and skills, this generation of workers will need to continue improving digital skills in real time. The relatively encouraging digital skill levels of immigrant-origin youth show that there is a solid foundation to build on to promote greater digital proficiency, to increase their mobility, and to better meet the needs of employers.
Leveraging Digital Skills: Immigrant-Origin High School Graduates Offer a Pool of Talent for U.S. Employers
Fully 92 percent of jobs across all U.S. industries require some level of digital skills, the National Skills Coalition estimated in a 2023 study. While IT or IT-related jobs have always relied on workers’ ability to use computers and digital technologies, across industries today’s workers may be asked to use and interact with a broad range of digital technology tools. For instance, restaurant workers use virtual reality training to learn food safety protocols, health-care providers create electronic patient records, and assembly line workers use augmented reality to learn how to use robotics. Digital technology in the form of online learning platforms is also increasingly used to obtain credentials and training to advance educational and career coals.
Box 1. PIAAC and Its Uses to Study Skills by Immigrant Generation
The Programme for the International Assessment of Adult Competencies (PIAAC) was developed by the Organization for Economic Cooperation and Development (OECD) and is used to survey adults in more than 40 countries, mostly OECD members. The assessment, funded and overseen by the U.S. Department of Education’s National Center for Education Statistics, employs advanced psychometric tests to directly assess U.S. adults’ ability to apply their knowledge to achieve personal or professional goals and accrue further learning and skills.
PIAAC assesses three skills domains: literacy, numeracy, and problem solving in technology-rich environments (or digital skills for short). In the United States, all tests were done in English; as a result, they may not fully capture the capabilities of immigrants who are still learning English.
In addition to direct testing of skills, PIAAC’s background questionnaire collects information on a wide range of demographic and socioeconomic characteristics, including participants’ age, immigrant generation, educational attainment, and postsecondary program enrollment (including vocational). Coupled with directly assessed foundational skills, PIAAC data offer a unique opportunity to explore how skills relate to enrollment and how this relationship varies by immigrant generation.
To boost the sample size and therefore to improve the quality of estimates by immigrant generation among U.S. high school degree holders between ages 18 and 34, the findings presented in this commentary draw from Migration Policy Institute (MPI) analysis of a combined 2012/2014/2017 PIAAC dataset. The researchers used the PIAAC data to determine skill levels of young adults by immigrant generation with the immigrant-origin young adults being the primary target population for education and workforce development programs.
The immigrant-origin population is comprised of those born outside the United States (i.e., first-generation immigrants) and those born in the United States with at least one immigrant parent (i.e., second generation). The skill levels of immigrant-origin young adults are compared to those of their U.S.-born counterparts from U.S.-born families (i.e., third-and-higher generation). The analysis here is focused on PIAAC participants who had a high school diploma or its equivalent but had not obtained a postsecondary credential at the time of the survey.
While demand for technologically savvy students and workers is growing, about one in four U.S. adults ages 16-65 lack digital skills, according to the Programme for the International Assessment of Adult Competencies (PIAAC), the international benchmark of adult skills that was last carried out in 2017. This means that they had either limited prior computer use or could do only basic tasks such as highlight text on the screen or sort emails into relevant folders. The PIAAC test also assessed two other skillsets—literacy and numeracy (see Box 1). Twenty-nine percent of U.S. adults lacked numeracy skills and 19 percent lacked literacy skills. U.S. adults scored lower in numeracy and digital skills than the international average and roughly at the same level on literacy, but across all three domains the United States scored lower than countries such as Finland, Japan, and the Netherlands.
These results have concerned U.S. educators and policymakers alike, given the retirement of the large baby boomer generation and the projections of slowed labor force growth. As a result, they are asking what level of skills the new generation of workers, U.S.-born and immigrant alike, have. The inclusion of immigrants—and their U.S.-born offspring—in discussions of U.S. workers’ preparedness for a rapidly evolving labor market has only grown in importance since the immigrant-origin population is expected to drive all net growth in the future labor force. Already, immigrants and their U.S.-born children (known as the immigrant-origin population; see Box 1) have accounted for the entire growth of the prime working-age population since 2000, and have seen their share of all U.S. workers rise to 29 percent in 2023, up from 19 percent in 2000.
Young U.S. Adults’ Skills by Immigrant Generation
The PIAAC analysis shows that young adults (defined here as high school degree graduates ages 18 to 34) are less likely to lack digital skills than U.S. adults overall, although skills vary by immigrant generation. Only 7-8 percent of second and third-and-higher generation young adults lacked basic digital skills. Seventeen percent of first-generation immigrant young adults scored low on the digital skills test (see Figure 1). The largest shares (45-49 percent) of U.S. young adults across immigrant generation scored at middle levels of proficiency followed by those who have high proficiency (38-44 percent).
Figure 1. Share of U.S. High School Degree Holders (18-34) by Immigrant Generation and Digital Skills Proficiency Levels
Note: Refers to adults 18-34 with a high school diploma/equivalent only.
Source: U.S. Department of Education, National Center for Education Statistics (NCES), Program for International Assessment of Adult Competencies (PIAAC), 2012/2014/2017 Restricted Use File Data.
At the same time, the PIAAC assessment clearly shows that a significant share of young adults (regardless of immigrant generation) lacks basic numeracy and literacy skills. For example, about 40 percent of immigrants lacked basic numeracy skills, while 25-29 percent of their second- and third-and-higher generation counterparts exhibited low numeracy levels (see Figure 2). About 12 percent of third-and-higher generation, 16 percent of second-generation, and 32 percent of immigrant young adults had weak literacy skills.
Figure 2. Share of U.S. High School Degree Holders (ages 18-34) by Immigrant Generation and Numeracy and Literacy Proficiency Levels
Note: Refers to adults 18-34 with a high school diploma/equivalent only.
Source: U.S. Department of Education, National Center for Education Statistics (NCES), Program for International Assessment of Adult Competencies (PIAAC), 2012/2014/2017 Restricted Use File Data.
Across all demographic groups, young adults displayed markedly lower numeracy skills compared to literacy and digital skills, a trend consistent with previous PIAAC studies that examined different age groups of U.S. adults. This is a concerning finding, particularly considering that these individuals have successfully graduated from U.S. high schools and because numeracy skills are found to have a more significant impact on economic outcomes than other tested skills.
Challenges and Opportunities to Credential Attainment
High-quality and market-valued degree and nondegree postsecondary credentials, including two- and four-year college degrees, vocational training certificates, and professional licenses, offer a direct path to economic and social mobility. PIAAC shows that many U.S. high school graduates, immigrant and non-immigrant alike, lack basic literacy and numeracy skills. These skills are important for pursuing further education and training. While there are many barriers to obtaining valuable credentials, such as financial constraints, competing family and child-care responsibilities, and mental-health challenges—and for immigrants additionally these include language barriers and lack of legal status—this study shows that high school graduates may have an asset: their digital skills.
Use of online-learning platforms and content on those sites increased during the COVID-19 pandemic—a trend that will continue, given significant public and private investments. The $2.75 billion Digital Equity Act passed in 2021 provides funding to help states promote access to digital technology and digital skills development.
PIAAC results show that most U.S. young adults with a high school education, those of immigrant origin included, have at least basic proficiency in digital skills. These skills could and should be leveraged to help these young adults improve their literacy and numeracy skills and obtain postsecondary credentials.
Still, as rapidly evolving artificial intelligence technologies are poised to transform the U.S. labor market across industries and skills, this generation of workers will need to continue improving digital skills in real time. The relatively encouraging digital skill levels of immigrant-origin youth show that there is a solid foundation to build on to promote greater digital proficiency, to increase their mobility, and to better meet the needs of employers.
Global Skills and Talent Initiative