By Tamara Ryan and Cole Anderson
Upon release, formerly incarcerated people often have few resources to get by while they are seeking employment. They struggle to find work because of criminal stigma, low education levels, and work history gaps. Supporting formerly incarcerated individuals upon their re-entry helps ensure they can take part in the activities needed for employment, such as resume preparation and learning job search skills. One key to improving the likelihood of employment post-incarceration is to ensure returning citizens have adequate financial resources and support to address their immediate needs and allow a focus on gaining employment. Moving more formerly incarcerated people into the workforce presents a massive opportunity for the state. Not having these individuals in the workforce is a lost opportunity for both employers and the state and increases the likelihood they will return to prison or will be rearrested, adding to the cost burden for the state. Key Findings • Formerly incarcerated people are 24% less likely to return to prison when they have acquired new skills and maintained employment during incarceration. • An estimated 6,000 individuals are released from Colorado prisons annually, a number that is roughly equivalent to 20% of the new entrants that are added to the state workforce each year. This number is also 1.5 times larger than Cherry Creek High School, the largest high school in the Denver area. • Breakthrough, a Colorado nonprofit that works with formerly incarcerated individuals, has helped those citizens achieve a 94% employment rate after their release. If Breakthrough’s results could be replicated for all applicable individuals exiting prison, 2,400 more individuals would be employed among each annual prison release cohort. Together those 2,400 individuals would contribute to GDP growth totaling more than $1 billion and a $650 million increase in personal income. • Colorado’s current 3-year recidivism rate is 28%. Reducing that rate to Breakthrough’s 6% rate would save the state an estimated $55 million annually in recidivism-related costs, realized after the three-year recidivism measurement period. • Inmates working in Colorado’s prisons earn just dollars per day.i Marginally increasing the income inmates can earn while working in prison and on work release programs could help reduce the financial burden to the state through decreased public benefit use and lower recidivism rates. • There is a strong connection between employment and lasting economic benefits for formerly incarcerated individuals. • Colorado currently lacks any data to capture the outcomes, particularly the employment and earnings outcomes, of former inmates. This deficit makes it difficult to gauge the success of post-release programs. • Over the 5-year period prior to the COVID-19 pandemic, more than half of those who recidivated went back to prison because of technical violations such as possessing a firearm or failing to report to a parole officer, not commission of new crimes. Employment for Returning Citizens Employment is a critical component of successful re-entry into the community after release from incarceration. A study by the Institute of Politics at the John F. Kennedy School of Government found a lack of employment was one of the most significant risk factors affecting successful re-entry.ii Researchers also found community organizations that offer returning citizens assistance with employment were most successful when they provided a holistic approach that included both training and job placement and emphasized high quality jobs with upward mobility potential. Positive benefits of employment include decreased reliance on state assistance, increased self-esteem, a more positive sense of identity, and a life made more stable because of income. Employers also benefit from successful reentry. Hiring formerly incarcerated individuals expands hiring pools at a time when businesses report difficulty finding talent, provides evidence of nondiscriminatory hiring practices, and creates potential tax credit and free bonding service opportunities. Additionally, employers could reduce training costs by hiring individuals who received training while incarcerated. Unfortunately, research shows a felony conviction or incarceration makes individuals significantly less employable. After release, finding a job can take six months or more.iii Providing resources for released individuals to get and keep a job decreases the risk of recidivism because it ensures these citizens are meeting the requirements of parole, contributing to their households, paying off fines or making restitution, and forming the prosocial connections that discourage re-offending. National data shows more than 27% of formerly incarcerated people are unemployed, a number that is higher than the U.S. unemployment rate at any time in history, including the Great Depression. Unemployment is worse for women than men, particularly for formerly incarcerated black women, whose unemployment rate is 43.6%.iv There is a clear connection between unemployment and likelihood to engage in crime. One study found that, among unemployed men in their 30s, more than half had been arrested or convicted of a crime. Additionally, it is important to remember the unemployment rate only measures people who are actively looking for work and does not include discouraged workers who have stopped looking for jobs. When these individuals are included in the calculation, the jobless rate reaches closer to 60%.
Greenwood Village, CO: Common Sense Institute, 2025. 18p.
