Huge Growth in People With Criminal Records creates $57-$65 Billion in Lost Output a Year

Huge Growth in People With Criminal Records creates $57-$65 Billion in Lost Output a Year

Growth of Ex-Offender Population in United States Is a Dramatic Drag on Economy

Three decades of harsh criminal justice policies have created a large population of ex-offenders that struggle in the labor market long after they have paid their debts to society, according to a new report from the Center for Economic and Policy Research (CEPR). Because prison records and felony convictions greatly lower ex-offenders' chances of finding work, the United States loses between $57 billion and $65 billion a year in lost output.


"It isn't just that we have the highest incarceration rate in the world, we have created a situation over the last 30 years where about one in eight men is an ex-offender," said John Schmitt, a Senior Economist at CEPR and a co-author of the report.

The new report, "Ex-offenders and the Labor Market," found that in 2008 there were between 5.4 million and 6.1 million ex-prisoners and between 12.3 million and 13.9 million ex-felons in the United States. Over 90 percent were men.

In 2008, about one in 33 working-age adults was an ex-prisoner, and about one in 15 working-age adults was an ex-felon. Among working-age men in that same year, about one in 17 was an ex-prisoner and one in eight was an ex-felon.

Because ex-offenders face substantial barriers to employment, the authors estimate that the large ex-offender population in 2008 lowered employment that year by the equivalent of 1.5 million to 1.7 million workers.

"The rise in the ex-offender population overwhelmingly reflects changes in the U.S. criminal Justice system, not changes in underlying criminal activity," says Schmitt. "We incarcerate an astonishing share of non-violent offenders, particularly for drug-related offenses. We have far better ways to handle these kinds of offenses, but so far common sense has not prevailed."

The report warns that in the absence of reforms to the criminal justice system, the share of ex-offenders in the working-age population will rise substantially in coming years, increasing the magnitude of employment and output losses estimated for 2008. ..Source.. by The Center for Economic and Policy Research (CEPR) was established in 1999 to promote democratic debate on the most important economic and social issues that affect people's lives. In order for citizens to effectively exercise their voices in a democracy, they should be informed about the problems and choices that they face. CEPR is committed to presenting issues in an accurate and understandable manner, so that the public is better prepared to choose among the various policy options.