This Fast Fact provides insight into the issue of language fluency and asset ownership by investigating the work arrangements, the sizes of employers, and the industries in which individuals with different levels of English proficiency are employed to determine whether these factors also have an impact on their financial wellbeing.
Figure 6 Each Eng Engli sh po liss sh pr essiof ng ici A su enc sset ch a y g ss O ret oup w s ne and is s rship on plilty 1 , int by 9 o t per Eng wo w cen lish o t i rk n t -Prof ar he “ range no icien tm w en el cy tl su –an n bca ot d tat Emp ego alr li ” g lo esy :r t oup do er hos Siz e who a ie ( ngfo so. r r e e The “ mploye very d b wy an ell – Appendix w em elp ll ”oye gro rup (“e ’sm as pl se oyed” t owner ) an sd t hip hos was e who a consir se ten setllf y- em in tp he loyed or mid dle have . other work arrangements. “Employed” was the Conclusion individuals employed by their employer) Diversity, Equity, and Inclusion Council m ore common work arrangement for all three English prof iciency groups, accounting for 81 percent of the “not Not Well – Not At All Very Well – Well English Only 100% 95% 95% Figure 5 93% well – not at all” group, 85 percent of the “very well – well” group, and 86 percent of the 92% English-only group The first Fast Fact examining the importance of English proficiency in achieving financial wellbeing found that May 9, 2024, #502 89% Appendix Figure 1 90% Asset Ownership Rate, by English Proficiency (Figure 2). 87% individuals with limited English have the lowest ownership rates of all examined asset types. This Fast Fact, 81% Retirement Asset Ownership Among Employed Individuals, by continu 100% ing that research, provides more insights into the issue of langua Eng ge lish On fluenc ly y and asset ow 79%nership by Not Well – Not At All Very Well – Well 77% 80% 93% Industry Figure 4 91% investigating the work arrangements, the sizes of employers, and the industries 72% in which individuals with different 89% Figure 2 68% 90% 70% Agriculture, F A ores sset try, F iO shiw ng, ne andrship Hunting Rate, by Eng Colish nstruc tProf ion iciency 85% levels of English fluency are employed to determine whether these factors also have an impact on their financial 65% 63% The Importance of English Proficiency in Financial 62% Work Arrangement Distribution Among Individuals Educational and Health Services Financial Service wellbeing. The analysis shows the same outcome: Workers in the “notE w ngel lish On l – lno y t at all” group had the lowest 60 80% % Not Well – Not At All V56% ery Well – Well 100% 55% With an Indication of a Job 93% Information Leisure and Hospitality asset ownership rates across all examine 50% d asset types 51% and employee/employer groups. Furthermore, those not Wellbeing: A Closer Look at Individuals With 70% 69% 50% 48% 88% 70% 46% 90% Manufacturing Mining 65% speaking English well or not speaking it at all were more likely to be employed in the construction and leisure and Self-Employed 62% English Literacy Level Employed Other Services Professional and Business Services Language Barriers and Their Workplace hospit40 al% ity industries, where retirement coverage is lower (Appendix Figure 1). 36% 60% 34% 36% 56% or Other 80% 52% Public Administration Transportation and 30% Utilities 31% Not Well – Not At All 81% 19% 30% 26% 50% 46% Wholesale and Retail Trade Very Well – Well 85% 15% In a pr 70 ev %ious EBRI Fast Fact, the topic of the signif44% icance of English proficiency in achieving financial wellbeing 22% 66% 22% 23% 66% 90% 42% 20% 85% 18% 1 Speak Only English 86% 14% 20% was explored 16% . Income and ownership rates16% of various assets and financial vehicles were analyzed among three 82% 40% 60% Source: 2022 Survey of Income and Program Participants (SIPP). 78% 80% English proficiency groups using responses of adults ages 21 or older from th 32% e 2022 Survey of Income and 30% 54% 7% 10% 52% 5% 72% 30% 72% This report was written by Samita Thephasit, EBRI Research Associate, with assistance from the Institute’s 70% Program Participation (SIPP), c71% ontrolling for age, i 25% ncome, and citizenship status. Based on this analysis, 24% 50% 0% 70% 22% 22% 21% 0% 65% research and editorial staffs. Any views expressed in this report are those of the author and should not be ascribed individuals with limited English were shown t42% o have the lowest ownership rates of all examined asset types. 17% 20% Small Medium Large Small Medium Large Small Medium Large Small Medium Large I t is essential to closely examine individuals in the employed group, as this work arrangement had a high 40% to the of 60% ficers, trustees, or other sponsors of EBRI, Employee Benefit Research Institute-Education and Research 55% Stocks/Bonds Primary Home Retiremen 54% t A 10% ssets Checking Account 52% 10% conc entration of people across all three English proficiency groups. Within the employed group, the three English 6% Fund (EB This Fast Fa RI-ct ER is Fa c ), or on tthei inurat st ion affs of . N tha eitthe wro EB rk, a Rs i I nor t ai E mB s t R o p I-ER rov F lobbi ide moes re i onsi r ta ght kes s p int osi o ttihe wor ons on k ar sper can ifige c p m ol en icy ts, 3% 30 50 % % Source: 2022 Survey o 25% f Income and Program Participants (SIPP). pr oficiency groups 44% are further classified based on the size of their employer: those who work for an employer employer sizes, and industries of these workers to understand whether these additional factors have an impact on proposals. EBRI invites comment on this research. 22% 0% 21% 19% w ith 100 employees or fewer (small), those who work for an employer with 101–500 employees (medium), and their fi40 nanc % ial E mp wlel oyl ed being. Sel I f-n Ecom mploye ed and own Employer edship Sr el aft -E es mp o lof y var ed iou Emp s a loy sse edts an Sd f elf-Eimp nan loyci edal ve Ehi mpc loy leed s are a Sel nfal -Ey mp ze loy d a ed mong 20% and Other and Other and Other and Other t hose who work for an employer with 501 or more employees (large). Although small employers had the highest Industry three English proficiency groups using responses of 30% adults ages 21 or older who indicated the presence of a job 30% Stocks/Bonds Primary Home Retirement Assets Checking Account 10% per centage across all three groups, individuals speaking English not well or not at all had the highest percentage 5% from the 2022 SIPP. The U.S. Census Bureau describes SIPP as “a nationally representative longitudinal survey of employment within small businesses (Figure 3). that pr2 o 0vi %des comprehensive information on income, employment, household composition, and participation in Among employed individuals in the “not well – not at all” group, the most common industry in which to be Source: 2022 Survey of Income and Program Participants (SIPP). 0% 2 government progrS atoc mk s.” s/Bon ds Primary Home Retirement Assets Checking Account employed was construction, which accounted for 17 percent (Figure 7). Leisure and hospitality and manufacturing 10% came in second and third with 14 percent and 13 percent, respectively. This distribution of industries was quite Source: 2022 Survey of Income and Program Participants (SIPP). Figure 3 Demogr 0%aphics different compared with the “very well – well” and English-only groups, where educational and health services Employer Size Among Those was the most common industry, followed by professional and business services and wholesale and retail trade. Source: 2022 Survey of Income and Program Participants (SIPP). in the Employed Group The SIPP asks individuals if they speak languages other than English at home. If the answer is yes, SIPP proceeds Figure 7 to inquire about the individual's proficiency level in English. The responses are divided into three categories based English Literacy Level Small Medium Large Industry Distribution Among Employed on the respondents’ self-evaluation of their English-speaking ability: “English only,” “very well – well,” and “not Not Well – Not At All 78% 13% 9% E En ngli glis sh h Pr Profic oficiency iency an and d E Em mp ployer loym Indiv e S n idu ize t A als rran , by ge English ment Proficiency well – not at all.” Very Well – Well 56% 20% 24% Agriculture, Forestry, Fishing, and Hunting Construction Speak Only English 58% 21% 21% Educational and Health Services Financial Service To exa As statm ed, in ea e ic fh Eng the silze ish pr of to hf e ic em ien pl cy g oyer roup hasi a s s ny e plitf f ie nt ct o t ow n as o w set or ow k-ar nr er ange ship, men ind t s ivi ubc duat alego s in rtihe e es: tm hose ploye who d gr ar oe up To learn more about individuals’ work arrangements, the sizes of their employers, and the industries they’re Source: 2022 Survey of Income and Program Participants (SIPP). Information Leisure and Hospitality ac em ro pss loyed all by an three En em gl pl ish oyer pro (f“e icm ien pl cy g oyed” roups ) and art eho sp se li w t in hto ar o thr e ee se lsfub -em capl teg oyed o ories b r hav ased e on t othehe r w si or ze k o ar f t rang heirem em ent pls oy . er: working in, the samples were limited to individuals with an indication of having a job. Among these individuals, 3 Manufacturing Mining Ther thosee w who as w no or cl ke far or p eat mtpl eroy n in er s w the irte h lat 100 ion e shi mp p be loye tw es ee on r f w ewer ork ar (srm an al ge l)m , ten hotse and who ass w eo t ow rk fne orr e sh m ip p r loye ater ss wi (Figu th 1 re 5 01) . percent were in the “not well – not at all” group, 15 percent were in the “very well – well” group, and 82 percent Other Services Professional and Business Services em How pleve oyeres , i nd to i500 vidual em s i pln t oyh ee es em (m ped loye ium d gr ), and oup tha hos d e wh highe o w r ow ork f neror shi ep r mp at loye es fr os w r ret itih re5 m 01 e entm as pl se otyee s acr s or oss m ao llr e th(rlee arge) . were in the “English-only” group, which was almost identical to the overall distribution of English proficiency Public Administration Transportation and Utilities 30% English Proficiency Overall groups of English proficiency. This could be due to the availability of retirement benefits in the workplace, (Figure 1). Wholesale and Retail Trade 27% m Ass aket ing s owne it eas rish eri f p r orat in es diw vier dual e gene s in rtahe lly em high ploy er ed c amoang t tego hose ry to eac mp cl es oye s td by hem.l ar ge organizations, with some Figure 1 25% 25% exceptions for those with the lowest language proficiencies (Figure 6). Nonetheless, the same pattern of English The ownership status of four types of assets and savings vehicles are analyzed: checking accounts, stocks and English Proficiency Distribution pr Sim ofiilcar ienc to y the em per rev ged ious , wf ii tnd h iindi ngs, vidua therle s w in t as he a c “n ons ot iw ste ent ll – pat not ter an t i an ow ll” gr noup ershi hp avi ran tg est, he l witow h thos est e who sp asset own ea er k o shinl p y rates bonds, retirement assets, and primary homes. Stocks and bonds refer to individual stocks, mutual funds, Engli across 20 sh ha a %ll fvi ou ng r t t yh pes e hi of ghes asste ow ts. Fo nerrsh ex ip am rat pes le, . Th 92 pe ey rw ce ent re of fol tlh ow e ied b ndiv y t idu hose als wh in o on the “lv yer spe y w ak E ell ngl – wiel sh l”and wo proficiren k fco y r a government securities, and municipal and corporate bonds held outside of other pooled assets. Those With an 17% English Literacy Level All sm group, w all orgh ani ile t za htose ion ow in tn he ed“ a n che ot wck elli ng – nac otco atunt all,” w gh roup ile oh nl ad y 6 th 2e l per ow ce en st t of ow tner he shi indp iv ria dual tes. For s in i the nst“no ance t w , 6 el 9 pe l – r nce otn at t of Indication of a Job 15% 14% t al hose l” gr w 15 oup % ho sp who ea k on work f ly En or a gls ish i maln l o the rgan em izpl atoy ion ow ed cat ne ed gor a y ow check nied ng rac eticou rem nt ent . assets, while only 22 percent of those According to the previous research, individuals in the “not well – not at all” proficiency group had the lowest Not Well – Not At All 3% 3% 13% 12% 3 12% 12% 12% with very limited or no English-speaking ability did. 11% asset ownership rates across allV fe orur y W type ell –s of We llassets. Whe 15% n zooming in on the 14% individuals who indicated the 11% 10% Speak Only English 82% 83% presenc 10% e of a job, the same pattern persists, as individuals in the “not well – not at all” group had the lowest 8% 8% 7% 7% 7% 7% Source: 2022 Survey of Income and Program Participants (SIPP). 7% ownership rates (Figure 4). Only 66 percent of p 6%eople in the “not well – not at all” group owned a checking 6% 5% 6% 5% 4% account, wh 4% ich is 26 percent less than those who speak only English (92 percent). There was also a 5% 1 3% 3% Thephasit, Samita, “The Importance of English Proficiency in Financial Wellbeing,” EBRI Fast Facts, no. 495 (Employee 3% 2% 2% 2% disproportionate difference in ownership among retirement assets, with 66 percent of those who speak only 1% 1% 1% Benefit Research Institute, March 14, 2024). 1% 0% 0% 2 0% Survey of Income and Program Participation (SIPP). United States Census Bureau (November 15, 2023). Available at English Only Not Well – Not At All Very Well – Well https://www.census.gov/programs-surveys/sipp.html. 3 Thephasit (2024) (see footnote 1). Source: 2022 Survey of Income and Program Participants (SIPP). 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