The impact of poor literacy and numeracy skills on employment and unemployment in Australia and elsewhere was examined through two case studies and a literature review. The first case study examined the role of literacy provision in helping 27 unemployed jobseekers find employment. The second focused on literacy and teamwork in the activities of local council workers with responsibilities for cleaning and repairing small drains and performing small construction jobs. Although statistics on literacy and numeracy indicate a relationship with employment status, that relationship is not necessarily "causal." Despite the fact that many individuals referred to literacy and English-as-a-second-language (ESL) programs welcomed the opportunity to develop their skills and believed that such programs would lead to jobs, literacy had played a minor role in their past work histories and appeared unlikely to have a big impact on their current chances of gaining employment. Although many of the local council workers were being targeted for their lack of literacy skills, it was difficult to demonstrate that their lack of literacy/numeracy skills had a significant impact on their job performance. The case studies provided evidence that, rather than causing unemployment or limited economic opportunities, limited literacy and numeracy skills are themselves caused by economic conditions and limited employment opportunities. (Contains 100 references.) (MN)