One can also chroot individual users or groups of users, though this is almost only used with sftp-only users who are just using the account to upload/download files, and who do not need any shell access.
Any shell users who are chrooted would require complete virtual filesystem environments, including their own /dev, /bin, /usr/bin, /usr/local/bin, /usr/lib, /usr/local/lib ... and probably a few more file structures I've forgotten.
If you want to keep users' private information private, it is much simpler to restrict their $HOME directories to their own use, or restrict to a group use if managing groups of users who share information.
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