18 Out Of Prison Employment Statistics [2026]: Economic Opportunity For Formerly Incarcerated

Research Summary: Many individuals who have been incarcerated strive to reintegrate into society after serving their time. However, finding suitable employment as a formerly incarcerated person (FIP) in 2026 continues to present numerous obstacles.

Our research delves into various aspects, including the unemployment rate for FIPs and their annual earnings. Here’s what we found:

• FIPs face a staggering unemployment rate exceeding 27%.

• The average annual income for individuals upon release is $19,610.

• 64% of unemployed men in their 30s have a criminal record.

• FIPs who find employment have a 16% recidivism rate after three years, compared to 52% for those who remain unemployed.

For further insights, we’ve categorized the data as follows:
General | Unemployment | Income | Demographics

General Employment Statistics for Formerly Incarcerated People

Employment is a vital step toward the successful reintegration of FIPs. Here are some key statistics reflecting the employment landscape for FIPs:

• Over 600,000 individuals are released from state and federal prisons each year.

  This high turnover means many individuals cycle through the criminal justice system. More than two-thirds of those released are rearrested within three years, with half being reincarcerated. Additionally, 9 million people are processed through local jails annually.

• The unemployment rate for FIPs is five times higher than that of non-FIPs.

  The situation is even grimmer for housing, as FIPs are ten times more likely to experience homelessness compared to their non-incarcerated peers.

• 44% of FIPs are re-arrested within one year of release.

  Overall, 82% of all FIPs face re-arrest at some point within ten years of their release.

• Up to 89% of re-arrested FIPs are unemployed.

  Unemployment significantly increases the likelihood of re-arrest, with unemployed FIPs more than twice as likely to be rearrested compared to their employed counterparts.

Formerly Incarcerated People Unemployment Statistics

Unemployment remains a critical issue for FIPs. Here are some insights into the challenges they face:

• FIPs released over four years ago still report an unemployment rate of 13.6%.

  Even years after their release, many FIPs struggle to find stable employment. This rate mirrors the persistent unemployment that peaked during economic downturns.

  Years since release	Unemployment rate
  Less than two years	31.6%
  Two to three years	21.1%
  Over four years	13.6%

• The average FIP is employed 25% less frequently than non-FIP employees.

  While the typical American employee is employed 78% of the time, FIPs average just 58% employment.

• On average, a FIP holds 3.4 jobs within four years of release.

  Many positions lack stability and opportunities for advancement, leading to frequent job changes that further complicate their employment history.

Formerly Incarcerated People Income Statistics

FIPs experience significantly lower incomes compared to other demographics in the U.S. Here are some critical income statistics:

• In the first year post-release, FIPs earn 53% less weekly than the average U.S. employee.

  Upon release, FIPs typically earn $269 per week, whereas the average American employee makes $507 weekly.

• After four years post-release, FIPs earn an average of $464 weekly.

  This reflects a 72.5% increase from their initial average income within their first year.

• Employing 100 FIPs could boost their lifetime earnings by $55 million.

  This increase in employment would also yield an additional $2.67 million in income and sales tax contributions to the economy.

Formerly Incarcerated People Employment Statistics by Demographics

Accessibility to employment opportunities varies significantly among different demographics of FIPs. Here are some critical insights:

• Formerly incarcerated Black women face an unemployment rate 137% higher than their white male counterparts.

  The unemployment rate for Black women stands at 43.6%, compared to 18.4% for white men.

  Demographic	FIP unemployment rate	General population unemployment rate
  Black women	43.6%	6.4%
  Black men	35.2%	7.7%
  White women	23.2%	4.3%
  White men	18.4%	4.3%

• Women experience a greater disparity in unemployment rates compared to men.

  Formerly incarcerated Black and white women are 5.8x and 4.4x more likely to be unemployed, respectively, compared to their non-FIP counterparts. In contrast, Black and white men are 3.2x to 3.6x more likely to face unemployment.

  FIP Demographic	Increased likelihood of being unemployed (compared to the same non-FIP demographic)
  Black women	581.25%
  White women	452.38%
  Black men	357.14%
  White men	327.91%

• Only 11% of FIPs complete a college degree.

  This includes 9% who earn a Bachelor’s degree and 2% who complete an Associate’s degree, with an additional 7% obtaining certificates from colleges or trade schools.

Out Of Prison Employment Statistics FAQ

1. How hard is it for a formerly incarcerated person to get a job?

   FIPs often face significant challenges in securing employment due to societal perceptions and liability concerns. Many employers are hesitant to hire FIPs fearing potential liability if a crime were to occur on the job. This contributes to the high unemployment rate of over 27% among FIPs.

   However, resources are available to assist FIPs in their job search. For example, the Library of Congress offers various support resources.

2. What percentage of formerly incarcerated people get a job within a year of release?

   Only 25%-40% of FIPs find employment within a year of being released. While these figures vary based on location, securing a job shortly after release remains a significant hurdle. Fortunately, the unemployment rate among FIPs decreases from 31.6% to 13.6% between two and four years post-release.

3. Why should companies hire formerly incarcerated people?

   There are compelling reasons for companies to consider hiring FIPs:

   • Reducing recidivism. Employed FIPs have a recidivism rate of just 16% after three years, compared to 52% for those who remain unemployed.

   • Economic benefits. Hiring 100 FIPs could generate an additional $1.9 million in income tax revenue and boost sales tax revenues by $770,000, while also saving the government millions in criminal justice costs.

   • Fostering self-improvement. Employment provides FIPs with purpose and motivation, fostering positive change in their lives and society.

Conclusion

In 2026, formerly incarcerated individuals continue to face a challenging job market, with an unemployment rate nearly double that of the general population. The average annual income for those who find work remains at just $19,610.

Nevertheless, it’s essential to highlight that employed FIPs have a significantly lower recidivism rate of 16% after three years, compared to 52% for their unemployed counterparts. This underscores the importance of supporting FIPs in their job search and reintegration efforts.

By utilizing online resources like the Library of Congress and job board sites, FIPs can improve their chances of securing stable employment and achieving long-term success.

References

1. Prison Policy Initiative – Out of Prison & Out of Work: Unemployment among formerly incarcerated people

2. United States Census Bureau – Great Recession Had Long-Term Economic Impact on People With Felony Convictions, Prison Time

3. CNBC – 64% of unemployed men in their 30s have criminal records, a barrier to landing a job

4. ASPE – Incarceration & Reentry

5. Building America – Why Should the Transportation Industry Consider Second Chance Hiring?

6. Prison Policy Initiative – Mass Incarceration: The Whole Pie 2022

7. Prison Policy Initiative – New data on formerly incarcerated people’s employment reveal labor market injustices

8. IRLE – Benefits of Higher Education for Formerly Incarcerated People

Author

Jack Flynn

Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.