Research on adult literacy in Canada showed the need for another category of adult reader--Level 3. Canadians at Level 3 can use reading materials in a variety of situations, provided the material is simple and clearly laid out, and the tasks involved are not too complicated. Although these people generally do not see themselves as having significant reading difficulties, they tend to avoid situations requiring reading. It was estimated that about 22 percent of adult Canadians are at this level of literacy. A follow-up study profiled adults with Level 3 literacy skills and suggested implications for adult literacy policy. Some of the characteristics of Level 3 readers are the following: (1) most people with Level 3 reading skills have attended secondary school at least for some time, although only 25 percent of Level 3 readers went beyond secondary school; (2) Level 3 readers are older than higher-skilled readers---25 percent are over 55--or younger than 25; (3) Level 3 respondents are more likely to work at white collar occupations, including managerial, professional, and clerical occupations; (4) Level 3 respondents were more likely to be employed than those with lower reading skills; (5) 81 percent were Canadian born; (6) equal numbers of males and females are at Level 3; and (7) 91 percent of readers at Level 3 said they were satisfied with their skills. The study concluded that is it difficult to assess how "at risk" Level 3 readers are and that one of the challenges of literacy education in the future will be to find ways to accommodate Level 3 readers in programs, since these learners are likely to be the majority in the next decade. (Contains 13 references.) (KC)