Ready for a Second Chance

In a labor market strained by chronic worker shortages and fierce competition for talent, an untapped source could provide a solution. That pipeline, according to the US Chamber of Commerce's 2025 The Workforce Impact of Second Chance Hiring report, consists of approximately 1.3 million Americans in prison and 3.7 million on probation or parole. Around 500,000 people re-enter society from prison each year, and nearly 30 percent of them remain unemployed—even though they have a high motivation to work. Ninety-three percent of formerly incarcerated individuals between 25 and 44 years old are actively working or job-seeking, compared to 84 percent across the broader population, the report notes.

Solving the numerous problems that people with criminal records face is not only a collaborative effort, Workforce Impact explains, but it is also beneficial for all parties. "To address the labor shortage crisis stifling our nation's economic growth, business and government must work together to understand the challenges facing specific populations and industries and find ways to overcome those obstacles," the report's authors write.

A Brennan Center for Justice report, Conviction, Imprisonment, and Lost Earnings, demonstrates the importance of hiring individuals with criminal records: Unemployed or underpaid people with criminal records cost the US economy between $78 billion and $87 billion annually in lost wages.

In addition, according to the Workforce Impact report, the majority of HR and business leaders say that second-chance hires perform as well, or better, than traditional employees. After recruitment, tailored training and mentorship programs—especially during onboarding—can unlock sustained success. The US Chamber of Commerce notes that individuals who maintain employment for one year postrelease have a 16 percent recidivism rate over three years, compared with a 52 percent recidivism rate for those who don't. That provides employers with a sizable, motivated workforce waiting for engagement—if they are willing to look beyond criminal records.

In organizations that do hire justice-affected individuals, talent development practitioners can weave them into competency frameworks and design culturally responsive training and mentoring. The result will be a workforce that's deeper, more diverse, and demonstrably higher performing.