The U.S. Department of Labor (DOL) has announced a phased pause of operations at all contractor-operated Job Corps centers nationwide, to be completed by June 30, 2025. This action follows an internal review of the program’s performance and structure, and will be carried out in accordance with available funding, the Workforce Innovation and Opportunity Act (WIOA), and congressional notification requirements.
Job Corps, a federally funded program aimed at providing education and vocational training to young adults, has operated under a contractor model to deliver these services across multiple centers nationwide.
The decision to pause operations comes amid financial considerations and program performance data. In Program Year (PY) 2024, Job Corps reported a budget deficit of $140 million, with projections estimating a deficit of $213 million for PY 2025. Additionally, the Department released its first Job Corps Transparency Report in April 2025, which summarized recent operational and financial metrics, including:
An average graduation rate of 38.6% (WIOA definition)
An average cost per student of approximately $80,285 per year
An average total cost per graduate of around $155,601
Average annual earnings of participants post separation at $16,695
A total of 14,913 serious incident reports in PY 2023, including incidents of violence, drug use, safety breaches, and hospital visits
As the transition proceeds, the DOL is working with state and local workforce partners to assist current students in continuing their education and training or connecting them with employment opportunities.
Secretary Lori Chavez-DeRemer stated that the department is committed to supporting students, staff, and communities affected by the pause while further evaluating the program.
For workforce development professionals, this pause may impact local training and employment services for young adults, with potential changes in resource allocation and program delivery in the near term. Collaboration among workforce agencies, education providers, and community organizations will be important to support individuals currently engaged in Job Corps or those seeking similar services.
The Department of Labor encourages stakeholders to stay informed as further details about program transition and future workforce initiatives become available.
For the full announcement and access to the Job Corps Transparency Report, visit: DOL Job Corps Announcement.