I've been impressed recently by El Salvador's "Plan Cero Ocio" ("Zero Leisure Plan") to allow prisoners to work to compensate for some of the damage they have done to society. Notably, unlike the US system from OP, the labor does not go to for-profit companies, but to public works projects like hospitals, roads, and schools that benefit all of society.
Another good read on carceral labor: https://archive.is/20230812162826/https://www.theamericancon...