Reimagining Opportunity: Why Systems Change Starts with Workforce Equity By: IEJI

Exploring evidence-based strategies and community-led solutions By: IEJI

Fact Sheet | September 2025

Economic Uncertainty and the Rise of Second-Chance Entrepreneurs By: Justin Burkholder

Many Americans have seen their work experience shift drastically over the course of the past seven months. More than 40 percent of adults reported that they or someone in their families lost a job, work hours, or pay because of the virus. The adults most likely to experience economic losses because of the pandemic come from families with lower incomes (below 250 percent of the federal poverty level.) Jobless rates increased in all fifty states over the last year, however, thirty states saw unemployment rates decrease in September, according to the Bureau of Labor Statistics. African Americans over age sixteen have a 2020 quarter three unemployment rate of 13.2 percent, Latino/Hispanics 11.2 percent, Asians 10.6 percent and Whites 7.9 percent. These numbers contrast to quarter three of 2019, 5.6 percent, 4.2 percent, 2.8 percent, and 3.4 percent, respectively. The spike in minority unemployment is concerning.  Recidivism has not had a large enough sample size to draw meaningful conclusions since covid-19. The early research suggests that arrest rates have decreased significantly for those who have been recently released from jail. In a report of New York with 1,400 people being released from jail since covid-19, roughly fifty have been sent to prison. That is a 4 percent recidivism rate as opposed to the 58 percent mark from 2001 to 2008. A quote from Sheriff Ron Hain of Kane County, Illinois, depicts recidivism rates of 60 percent pre-COVID. From March 13 to June 23 of 2020, twenty-eight of the 1,000 people in their system were sent back to jail custody upon their deferral or early release. That is a recidivism rate of 2 percent. Again, a small sample size but a real-life example. The Sheriff’s Diversion Programs are shifting to serve outside the facility with satellite locations for vocational training and job placement to help keep those with chronic criminal involvement from re-offending by offering professional opportunities. Reentry service providers are demanding Congress and states to spend funding and resources for the move of people back home to reduce recidivism rates. Some of the offered solutions by advocates include additional stimulus checks to people released from prisons and jails, canceling incarceration-related debts, and expanding safety net programs to be inclusive of those with criminal records. You can read more here. Those who are being released from prison during covid-19 are finding limited jobs in familiar industries such as hospitality and manufacturing. Before the pandemic, Prison Policy Initiative reported that formerly incarcerated individuals are five teams more likely to be unemployed than the rest of society. During the pandemic, Project Return of Nashville is suggesting 75 percent of her clients are without work. To meet the needs of their clients, they bought tents and sleeping bags and were transferring people to hotel rooms. You can read more about their work here. Supply and demand have affected various industries drastically the past nine months (see below). Health had a clear increase in demand recently and transport remained essential, however, consisted of mainly empty trains. Entertainment and restaurants significantly decreased in demand and felt the dismissal of supply as well. Supply is largely dependent on the ability of the work to be completed at home or not. The government’s hesitance on spending in frozen sectors also slows the transfer of resources for businesses. The Small Business Administration’s Payment Protection Program was a helpful initiative in encouraging workers to be furloughed and retained instead of directly fired. The recovery should be better suited because of an initiative like this.