I think this was mostly answered in the other comments, so I’ll mention another category of people: felons although perhaps they fall in to the desperate people category because many employers do simple background checks on people and purposefully avoid hiring felons, thus the job prospects of felons is limited.

Why don’t companies hire them? I assume due to perception from that company’s customers, current/potential employees who wouldn’t want to work with felons, and associated risks (depending on the nature of the crime and the business of course).

I know of a company that specifically advertises that they hire felons and that they’re absecind chance employer to help people get their life back together. As far as I understand it’s mostly manual labor and factory type work and I assume they pay less than their competitors, so would have less operating costs. If this is the case, wouldn’t more businesses want to do so?

It may not be overall beneficial. They may attract some customers as they advertise how they’re helping people and by using their services, you’re helping people get their life on track, but they may also lose some customers. For some positions, hiring can be difficult for any company and this may make filling those positions even more difficult/costly such that savings aren’t worth it.

Generally if there’s an easy way to make money/more profit, it would be prevalent, so there’s probably down sides (thst are not necessarily apparent) that out weigh the benefits or people are not trying to maximize profit for some reason (possibly due to bias resulting in incorrect assessments).