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Business Environment Profiles - United States

Incarceration rate

Published: 28 July 2025

Key Metrics

Incarceration rate

Total (2025)

314 People

Annualized Growth 2020-25

-3.1 %

Definition of Incarceration rate

The incarceration rate represents the number of sentenced inmates currently incarcerated under state and federal jurisdiction per 100,000 citizens. Data is sourced from the US Department of Justice and only includes prison-only inmates, excluding local jails.

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Recent Trends – Incarceration rate

The US incarceration rate is estimated at 314.0 people per 100,000 in 2025, continuing a downward trend with a 6.2% decrease this year. This reflects policy changes and sustained crime declines. While violent crime rates have decreased, reforms at state and federal levels drive the reduction in the incarcerated population. Public health concerns, such as infectious disease risks in correctional facilities, amplify these policy effects.

From 2020 to 2025, the incarceration rate declined at an annualized rate of 3.1%. Significant reductions began in 2020, with a 15.7% drop as authorities prioritized releasing low-risk individuals during the COVID-19 pandemic. Many states opted for supervision over incarceration for nonviolent offenders, a shift reinforced by ongoing health risks. The decline continued more slowly from 2021 to 2025 as the pandemic's influence subsided but policy reforms persisted. State-level variations remained, with temporary increases in some areas despite the national trend. The federal prison population, about 12.3% of all prisoners, contracted with changes at the state level having a larger effect.

During this period, macro trends like decreasing crime rates and decarceration strategies played key roles in lowering incarceration rates. Alternatives to incarceration, such as community supervision and diversion programs, helped reduce the inflow of new prisoners. Policymakers increasingly favored rehabilitation-focused programs as evidence showed extended incarceration didn't improve safety outcomes and could increase recidivism.

Between 2020 and 2025, falling crime, state-led decarceration measures, and health-driven reforms drove a substantial decline in incarceration rates, setting the stage for further reductions.

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5-Year Outlook – Incarceration rate

The incarceration rate is forecast to reach 290.7 people per 100,000 in 2026, a 7.4% decrease fro...

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