Yes. It's a standard set out by an international organization that ranks literacy levels around the world. They've determined that level three is what is required for people to get along in the western world. It's on a scale of one to five. The people at levels one and two in Canada, who are the 42%, are adults who have anywhere from very little literacy--they cannot read and write--up to, say, grade 10 or 11.
On October 17th, 2006. See this statement in context.