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Why a Second Chance is Good for the Economy

| By: Expeal Staff

Research

Criminal records don't just hurt the individual, they hurt every American. They hurt families, strain communities, and stall local economies.

The Naples Mercantile Building, constructed in 1919, is the city's first commercial building.
The Naples Mercantile Building, constructed in 1919, is the city’s first commercial building. Photo credit: Ebyabe via Wikimedia Commons

The Economic Impact: $372.3 Billion Lost

Today, there are more Americans with criminal records than college degrees. In fact, if you selected 100 random Americans, at least one is currently sitting in a prison cell. While many have served their time and earned a second chance, the true struggle begins after release.

The financial toll of these records is staggering. Underemployment caused by criminal records means Americans lose an estimated $372.3 billion in lost wages every year. This isn't just a statistic, it is money removed from local economies that could have been spent on food, education, and housing.

  • Misdemeanors: Removing the stigma of a misdemeanor could raise individual earnings by 16%, injecting over $240 billion into the economy.
  • Felonies: Even without prison time, a felony reduces wages by 21.7%, a $77.1 billion loss to the American workforce.

Employment as a Shield

We know that a steady job is the most effective way to prevent a return to prison because the numbers prove it. People are 24% less likely to return to prison if they pick up new skills or hold a job while serving time while those who keep a job for a year have a recidivism rate of only 16% (versus 52% for those without a job).

But here is the problem: despite the will to work, a conviction reduces the chance of a job offer by 50%. The record shuts the door before the interview even begins.

This is why record clearing is vital. Sealing or expunging a criminal record, while tough to do in some states, changes everything. When a record is sealed or expunged, barring a few limited exceptions, a person is legally allowed to say that, as far as that record is concerned, they have never been arrested.

Clearing criminal records isn’t just the right thing to do for the individual; it is the right thing to do for society. It lowers crime, boosts the economy, and restores deserved dignity. It is a community investment.

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