The variable nature of literacy is discussed in chapter one of this paper, including problems of arbitrary standards, instruments, and criteria. In the second chapter, some of the historical roots of the concept of literacy are traced both to show how the concept of literacy evolved and to show how literacy has always been closely tied to the spirit of the times. The social, political, and educational uses and abuses of literacy assessment are examined and an attempt is made to place current efforts in a social, political, and educational context, including current assessments of functional literacy. The need to assess actual literacy demands and individuals' abilities to handle those demands is stressed in chapter three. In chapter four, possible instruments to do this type of assessment are proposed for job-related literacy demands and the results of a field-testing of these instruments is presented. (MKM)