functional illiteracyn. originally U.S. the state or condition of having some ability to read and write, but at a level which makes it difficult to perform everyday tasks involving these skills.
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1931 N.Y. Libraries Feb. 163/2 Legal illiteracy as revealed by the census is much smaller than functional illiteracy.
2015 L. CummingsPragmatic & Disc. Disorders v. 189 The standard explanation of functional illiteracy has pointed to factors such as sociocultural disadvantage.