JPMorganChase: Pathfinders and JPMorganChase Champion Second Chance Hiring to Boost Texas Economy and Transform Lives

One in three Americans has a criminal record, including more than nine million Texans. Many of these men and women face significant barriers to employment and economic opportunity, costing the U.S. economy billions annually. 

Fort Worth non-profit Pathfinders is equipping formerly incarcerated Tarrant County residents with the skills to build better lives. In a sit down with JPMorganChase North Texas Market Vice Chair J.T. Aughinbaugh, Pathfinders CEO Kathryn Arnold highlights Second Chance hiring’s transformative potential.

J.T. Aughinbaugh: Tell us about Pathfinders’ mission, work and initiatives in Second Chance hiring.

Kathryn Arnold: Pathfinders aims to eliminate poverty by empowering individuals and families to achieve social and financial wellbeing. Our Pathways to Success program, launched 15 years ago, provides new beginnings for people reentering the community after incarceration. Having a criminal record can limit economic opportunity. Our initiative has reduced recidivism by 45%, transforming lives and positively impacting the local economy. 

We work with individuals in Tarrant County Jail and offer mentoring, financial coaching and family reunification services. Stable employment is key to successful reentry, so we continue our support for a year post-release, guide clients in resume writing, interviewing and discussing their history with potential employers. Additionally, we partner with employers involved in Second Chance hiring to help our clients navigate the often complex reentry hiring process. Our clients are motivated by a genuine desire to change their lives. We believe in their potential for success.

J.T. Aughinbaugh: How does Second Chance hiring benefit families, local economies and community safety?

Kathryn Arnold: Ninety-five percent of arrested individuals will be released at some point in the future and return to our communities. We know that individuals with a reliable income are less likely to reoffend, so we have two choices. We can either provide a pathway to gainful employment or make it so difficult for those with a background to work that we inadvertently create a cycle of incarceration. 

Employers often hesitate to hire individuals with criminal records due to perceived safety and financial risks, assuming past arrests predict future offenses. However, data from the National Institute for Justice indicates that after a certain period, known as the “point of redemption,” these individuals are no more likely to reoffend than anyone else. This period typically ranges from three to eight years, depending on the age at first offense and the crime’s severity.

J.T. Aughinbaugh: With Texas’ growing economy and talent shortage, Pathfinders has helped get more people with records off the sidelines and into the labor market. How do you explain the business case for hiring individuals with records to employers?

Kathryn Arnold: Employment challenges that leave individuals with a criminal record unemployed or underpaid cost the U.S. economy between $78 billion and $87 billion every year. As a second chance employer, I have personally observed that employees with criminal backgrounds are often the most dedicated and loyal team members, as they value the opportunity given to them. The numbers show this is true as people with criminal records are 2.7% less likely to be fired, and their average annual turnover is 12.2% lower than those without criminal records. In Tarrant County, 67% of our Pathways to Success clients retain employment. 

J.T. Aughinbaugh: A dozen states have passed Clean Slate legislation, which eliminates the costly, complex process of clearing eligible records. The Texas legislature is expected to take up this legislation again this session. How does helping people move on from their records open up greater economic opportunity?

Kathryn Arnold: Clean Slate legislation automatically clears eligible criminal records for individuals who have completed their sentences and remained crime-free. This initiative expands access to employment, education and professional licenses, which are often inaccessible to those with criminal backgrounds. The process is expensive and can take months or years. Average earnings increase by about 20% for people with cleared records. When more than 70 million Americans have a record, introducing automation into the system is an efficient way to work through the backlog.

By enabling individuals to secure stable employment, Clean Slate laws allow them to contribute economically by paying taxes, purchasing homes and saving for retirement – all reducing reliance on government assistance. 

Kathryn Arnold: To turn the spotlight on you, why is this work important to JPMorganChase, specifically here in Fort Worth? 

J.T. Aughinbaugh: Dallas-Fort Worth is a great place to live, work and raise a family, but it faces a talent shortage and skills gap as we look to fill not just the jobs of today but the jobs of tomorrow. With one in three working age Americans having a criminal background, excluding this population segment overlooks significant untapped talent potential. 

JPMorganChase supports second chances, having seen the benefits firsthand from our own hiring practices. Nearly 10% of our new U.S. hires have a previous arrest or conviction record, which do not affect their roles. We are a skills-first employer, so once we have identified a candidate with the right skills for the job, we conduct a background check only after a conditional offer of employment has been made

With a 150-year presence in Fort Worth, we deeply care for the community. Workforce readiness and jobs and skills development are key focuses for our philanthropic investments in North Texas. We’ve invested more than $400,000 in Pathfinders’ other initiatives to support single mothers transitioning off of government assistance and financial coaching for families on the verge of homelessness. Our investment has increased the credit scores of 285 Pathfinders clients by an average of 143 points. We’re also in the process of funding Pathfinders’ Economic Mobility Pilot to identify effective interventions for financial stability. Since 2019, we’ve invested more than $40 million in non-profits across North Texas.

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