U.S. Labor Department to Pause Job Corps Operations by 2025

WASHINGTON, D.C. — The U.S. Department of Labor announced today that it will begin a phased pause of operations at contractor-operated Job Corps centers across the nation. This halt aims for completion by June 30, 2025, following an internal review of the program’s outcomes and structure.

Labor Secretary Lori Chavez-DeRemer stated, “Job Corps was created to help young adults build a pathway to a better life through education, training, and community. 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.”

The decision aligns with the President’s FY 2026 budget proposal and comes as the program faces significant financial challenges. In program year 2024, the Job Corps operated at a $140 million deficit, projected to increase to $213 million in 2025.

According to the Department of Labor, the Job Corps program, started in 1964 under the Economic Opportunity Act, serves young adults aged 16 to 24. Currently, about 25,000 students are enrolled in 123 Job Corps centers, of which 99 are operated by contractors.

Recent reports reveal shocking statistics: an average graduation rate of only 38.6%, and an annual cost per student exceeding $80,000. Graduates reportedly earn an average of just $16,695 annually after completing the program, which costs taxpayers around $1.7 billion each year.

During this transition phase, the Department of Labor is collaborating with state and local workforce partners to assist students in accessing education and employment opportunities. Students will be assisted in reconnecting with local American Job Centers.

Chavez-DeRemer emphasized the department’s commitment to support all participants as they navigate this change. She stated, “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 the program undergoes this critical reassessment, its future remains uncertain. The Labor Department clarified that this pause does not equate to the elimination of Job Corps, which can only be enacted by Congress.