This report makes the case for a shift in emphasis in U.S. education and workforce development policy. Specifically, the report sets out a rationale for investing more in upgrading the foundational skill levels of the U.S. workforce. The report summarizes the results of studies that used data from the 1994 International Adult Literacy Survey (IALS), 2003 Adult Literacy and Lifeskills (ALL) and 2011 Program for the International Assessment for Adult Competencies (PIAAC) studies that confirm the central importance of literacy and numeracy skill to economic performance. The report authors suggest a need to increase the skill levels of youth leaving all levels of the education system. This alone will not yield enough new skill to satisfy the predicted demand, so the authors also recommend that policy makers find ways to induce employers into upgrading the foundation skill levels of their workers. A failure to take these measures will lead to material declines in income and employment levels and rising skill-based inequality in valued labour market and educational outcomes.