The U.S. Department of Labor has announced plans to implement a phased pause in operations at its nearly 100 contractor-operated Job Corps centers nationwide by June 30, 2025, according to a department press release. This marks a significant change that will affect workforce development for underserved youth.
The decision to wind down the Job Corps centers follows an internal program review and stems from significant issues, including financial deficits, safety concerns, and underwhelming student outcomes. The residential career training and education program is focused on low-income young adults ages 16 to 24.
Job Corps Closing: Breaking Down The Numbers
The U.S. Department of Labor’s Employment and Training Administration released a report in April 2025 that details the Job Corps program’s performance and return on investment.
The average graduation rate is about 38.6%, according to the report, as cited by Fox News. Other findings show that the average cost per graduate was up to $155,600, which exceeds the $153,080 average cost of a four-year college education, based on data from the U.S. Department of Labor.
Despite the high costs, the report found that many Job Corps graduates are entering the workforce in low-wage positions, earning an average of just $16,695 annually after completing the program.
Currently, the program serves fewer than 25,000 students, and the report raises significant concerns about participant safety, noting that students are “often at risk” during their time in the program. The report points to incidents such as sexual behavior and sexual assault, drug use, breaches of safety and security, and acts of violence.
Job Corps also ran at a $140 million deficit in 2024, with projections indicating that figure could increase to $213 million by 2025, per Fox News.
A Phased Transition for Students And Communities
In a press release statement, Labor Secretary Lori Chavez-DeRemer emphasized the department’s commitment to supporting current students during the transition.
“Job Corps was created to help young adults build a pathway to a better life through education, training, and community,” she said. “However, a startling number of serious incident reports and our in-depth fiscal analysis reveal the program is no longer achieving the intended outcomes that students deserve. We remain committed to ensuring all participants are supported through this transition and connected with the resources they need to succeed as we evaluate the program’s possibilities.”
As operations wind down, the department is working with local state workforce partners to connect Job Corps participants with alternative education and job training opportunities, Fox News reports.
The closing of Job Corps presents an opportunity to reimagine how federal programs can better serve underserved youth, potentially through more tech-driven, community-focused, and data-informed models.
