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    Home»Business»The untapped workforce solving industry labor shortages
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    The untapped workforce solving industry labor shortages

    October 8, 20256 Mins Read
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    In today’s dynamic labor market, industries from manufacturing to healthcare continue to grapple with persistent workforce shortages. To fill these gaps, organizations are looking beyond traditional talent pools. One of the most promising yet significantly underutilized groups is second-chance talent, or graduates of prison education programs. These individuals represent millions of highly motivated and skilled professionals seeking stability after incarceration.

    Too often, outdated hiring methods and social stigmas have blocked justice-impacted individuals from employment opportunities that could change their lives. However, by shifting perspectives and implementing strategic programs, forward-thinking companies can access a dependable source of skilled workers while creating a positive social impact.

    THE SCALE OF UNTAPPED POTENTIAL

    The United States’ criminal justice system affects a much larger portion of the population than most realize. About 600,000 Americans are released from state and local prisons each year. This means nearly one in three or 70 million adults have a criminal record. Many of these individuals face obstacles when reentering society.  In a recent episode of Geographic Solutions’ podcast, The VOScast, Jeffrey Abramowitz, CEO of the Petey Greene Program, stated, “It is estimated that there are more than 44,000 barriers to employment for the formerly incarcerated, with 70% related to employment.”

    Securing stable employment after prison is often the biggest challenge for justice-involved individuals. This is due to several factors, including a lack of education, nonexistent or inadequate job skills, and the stigma of having a criminal record, which often leads to higher rates of recidivism. According to the Safer Foundation, about 75% of justice-impacted individuals stay unemployed one year after their release. These barriers not only limit an individual’s potential but also represent a missed opportunity for employers facing labor shortages.

    “I think we’re missing an amazing opportunity right now in the country, and that opportunity is to recognize fair chance hiring or getting people who have been challenged in the Justice space back to work,” said Abramowitz in the podcast. “I also believe we’re missing an opportunity and not recognizing the reality that education plays a vital role in the United States.”

    BRIDGE SKILLS GAPS WITH TARGETED TRAINING PROGRAMS

    The path to integrating individuals with a criminal record into the workforce begins with education and training. Reentry programs play a crucial role in helping justice-impacted individuals successfully reintegrate into society. They offer a variety of services tailored to meet the needs of those returning to the community.

    These programs provide job training, educational opportunities, housing support, counseling, and soft and hard skills development. A study by the RAND Corporation found that reentry education programs may boost employment prospects post-release, with participants having a 13% higher chance of getting a job than non-participants.

    “Many of these individuals might struggle with reading, writing, and basic math, all of which are essential components for not only getting hired but also being able to advance their career,” said Abramowitz in the podcast. “When we talk about getting people back into employment and finding good opportunities for them, we also need to think about the integration of education and how we can set people up to succeed.”

    Many nonprofit organizations are creating tailored training programs to equip people with skills, knowledge, and opportunities that directly align with market needs. Organizations like the California Prison Industry Authority (CALPIA) have led innovative reentry initiatives, preparing justice-impacted individuals for productive lives outside of prison and reducing their chances of reoffending. A recent study from the University of California, Irvine found that individuals who have participated in CALPIA’s programs while incarcerated have lower rates of recidivism compared to those who did not participate. 

    Similarly, the North Carolina Department of Adult Correction is partnering with the Division of Workforce Solutions at the Department of Commerce for the North Carolina Pathway to Reentry. Using funds from the Pathway Home grant, the project provides pre- and post-release activities, including workshops, counseling, and training to help people transition out of incarceration and reenter their communities. It focuses on goal setting, action plans, education, and skill development for specific jobs. 

    Creating easily accessible pathways for skill development and job training unlocks new opportunities that not only benefit those with a criminal background but also businesses that are looking to address labor shortages.

    BUILD BRIDGES WITH EMPLOYERS

    With many industries facing skill and labor shortages, companies are recognizing the value of this untapped workforce. According to the Society for Human Resource Management, two in three HR professionals reported that their organization has hired individuals with criminal backgrounds. Moreover, 85% of HR leaders believe second-chance hires perform as well as or better than other employees.

    Despite this, some employers may hesitate to consider second-chance hiring due to concerns about liability, employee morale, perceived unreliability, and social stigmas. A recent survey from the Second Chance Business Coalition shows that almost 90% of employers mandate background checks for applicants, and having a criminal record decreases the likelihood of progressing to a second interview by half.

    To successfully hire from this talent pool, employers must move beyond these stigmas and understand that second-chance hiring is more than a charitable act. By re-evaluating long-held hiring biases and actively engaging with this talent pool, organizations can transform a societal challenge into a strategic business advantage that benefits everyone.

    Companies such as JPMorganChase and Dave’s Killer Bread are notable examples of organizations that have effectively implemented a second-chance employment model. JPMorganChase reports that almost 10% of their hires over the past five years have had a criminal record, and a third of Dave’s Killer Bread staff, including cofounder Dave Dahl, have felony convictions.

    LOOKING AHEAD

    The way forward to addressing labor shortages involves a shift in how businesses perceive and engage with talent acquisition. It requires a proactive approach to recognize justice-impacted individuals as highly motivated and skilled professionals capable of contributing to the workforce.

    By adopting inclusive hiring practices, companies can effectively fill labor gaps while also fostering a more diverse workplace. This strategy not only promotes economic growth by expanding the talent pool but also benefits local communities by offering opportunities for individuals to successfully reintegrate into society and attain long-term stability.

    Paul Toomey is the founder and president of Geographic Solutions.



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