The U.S. Department of Labor will shut down all contractor-operated Job Corps centers nationwide by June 30, 2025, following an internal review that revealed poor outcomes and significant safety concerns at the workforce training program.
The decision affects thousands of young adults currently enrolled in the federal program designed to provide education and job training to disadvantaged youth ages 16 to 24. The department is working with state and local workforce partners to help current students complete their training and find alternative education or employment opportunities.
Financial deficits drive closure decision
The closure comes as the program faces mounting financial challenges. Job Corps operated at a $140 million deficit in program year 2024, requiring the Biden administration to pause operations to complete the program year. The deficit is projected to reach $213 million in program year 2025.
“Job Corps was created to help young adults build a pathway to a better life through education, training, and community,” said Secretary Lori Chavez-DeRemer. “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 department’s decision aligns with President Trump’s fiscal year 2026 budget proposal and reflects the administration’s focus on ensuring federal workforce investments deliver measurable results for students and taxpayers.
Poor graduation rates and high costs revealed
A transparency report released April 25, 2025, by the department’s Employment and Training Administration revealed significant performance issues within the program. The analysis of program year 2023 data showed an average graduation rate of just 38.6 percent under the Workforce Innovation and Opportunity Act definition.
The program’s costs per student averaged $80,284.65 annually, with the total cost per graduate reaching $155,600.74. Graduates earned an average of $16,695 annually after completing the program.
Safety incidents raise concerns
The transparency report documented 14,913 serious incident reports during program year 2023, including 372 cases of inappropriate sexual behavior and sexual assaults, 1,764 acts of violence, and 2,702 instances of reported drug use. Students required 1,808 hospital visits during the same period.
The department said it remains committed to supporting current participants through the transition and connecting them with resources needed to succeed while evaluating future possibilities for the program.
The phased closure will be carried out according to available funding, the statutory framework under the Workforce Innovation and Opportunity Act, and congressional notification requirements.
