A recently released government report has raised serious questions about the effectiveness and financial sustainability of the federal Jobs Corps Program, potentially paving the way for budget reductions as part of an ongoing effort to streamline government spending.
The Employment and Training Administration (ETA) within the Department of Labor conducted a comprehensive review of the program—a residential training initiative aimed at providing career education and skills development for low-income young adults aged 16–24. This program, widely supported by labor unions, received a budget allocation of $1.7 billion in fiscal year 2023.
The analysis, encompassing data from 124 job centers, scrutinized the definition of successful “graduation” and revealed concerning statistics:
- Graduation Rates: Average completion rates varied between 32% and 38%, depending on the specific criteria used.
- Student Costs: The average cost per student for the entire program amounted to $49,769.53 in FY2023, escalating to $79,631.25 per student annually.
- Cost Per Graduate: The total average investment per graduate ranged from $155,600 to $187,653.
Perhaps most significantly, the study found that a majority of graduates secured low-wage employment following program completion, with an average annual income of just $16,695.
“Taxpayers deserve to know the facts and outcomes of their multi-billion-dollar investment,” stated Lori Frazier Bearden, ETA Acting Assistant Secretary. “This report underscores the Department’s commitment to program transparency and accountability—both of which are essential for effective oversight, informed policymaking, and maintaining public trust.”
The department’s review further identified significant cost disparities among individual centers. According to the findings:
- The ten least efficient programs incurred an average expense of $512,800 per graduate.
- The fifty least efficient programs collectively averaged $319,085 per graduate.
Beyond financial concerns, recent reports have highlighted troubling issues related to program safety and security. Data suggests that Job Corps facilities have sometimes housed individuals with criminal backgrounds or runaway teens, leading to instances of serious crimes including assault, drug dealing, and sexual violence.
The Department of Labor has been actively prioritizing transparency as part of a broader initiative focused on government efficiency. Earlier actions include the return of over $1 billion in unused COVID-19 relief funding and the cancellation of a $4 million contract for Diversity, Equity, and Inclusion (DEI) consulting services within the Jobs Corps program.
