Trump’s Labor Department Threatens to Shut Down Job Corps, Cutting Off Skilled Trades Pipeline

Trump's Job Corps Freeze Puts Future of Skilled Trades and At-Risk Youth in Jeopardy

As President Donald Trump continues to push for a revitalization of American manufacturing and skilled labor, his Labor Department’s decision to suspend the Job Corps program could disrupt one of the nation’s most effective pipelines for young tradespeople.

In late May, the Department of Labor announced it would halt contracts for 99 Job Corps centers operated by private contractors, citing budget concerns, safety issues, and a reevaluation of the program’s effectiveness. The move has cast uncertainty over the futures of more than 21,000 low-income and at-risk students currently enrolled in the vocational training initiative.

“I honestly didn’t have a future,” said Chloe Lawson, a former unhoused youth from Texas who turned her life around through Job Corps and is now interviewing for an $80,000-a-year train conductor job.

What Is Job Corps and Why Does It Matter?

Launched in 1964 under President Lyndon B. Johnson’s War on Poverty, Job Corps is a federally funded residential career training program for disadvantaged youth. It offers training in high-demand trades like welding, ironwork, electrical, transportation, and health care.

The program has served as a vital pipeline for skilled labor, especially as older tradespeople retire and shortages grow across critical sectors. Economists warn that shuttering Job Corps would damage the labor market just when the demand for workers without college degrees is skyrocketing.

“We have a very strong need for those with less than a bachelor’s degree,” said Rachel Sederberg, senior economist at Lightcast. “These are critical jobs for our economy.”

Labor Department’s Justification Under Fire

Labor Secretary Lori Chavez-DeRemer claimed the decision was based on fiscal health and safety concerns, citing an internal review. However, critics say the analysis relied on pandemic-era data and overstated safety incidents — many of which involved non-violent events like power outages or students leaving campus.

The National Job Corps Association and multiple center operators have challenged the move in federal court, securing a temporary injunction. But legal experts warn the program’s future still hangs in the balance, especially after a recent Supreme Court ruling limited nationwide injunctions.

Economic Ripple Effects: Skilled Labor, Supply Chains, and Inflation

According to McKinsey & Company, the annual hiring need for skilled tradespeople will be 20 times higher than for other roles between 2022 and 2032. Shutting down Job Corps would drastically reduce the pipeline of workers in essential roles like:

• Carpenters

• Plumbers

• Electricians

• Welders

• Train conductors

• Medical assistants

“We’re short electricians, we’re short carmen — we’re short everything,” said Arthur Maratea, president of the Transportation Communications Union/IAM, which has placed over 16,000 Job Corps students into railroad jobs since 1971.

Without these trained workers, supply chains could suffer delays, particularly in freight transportation, leading to price increases and logistical backlogs.

Youth Employment in Decline

The broader implications for youth are equally troubling. The labor force participation rate for 16- to 24-year-olds fell to 54.9% in June 2025, far below its 1990 peak of nearly 68%, according to the Bureau of Labor Statistics.

Job Corps has often served as a last resort for unhoused, low-income, or struggling young adults, offering stable housing, career training, and a path to independence.

“Before Job Corps, I had maybe $20 to my name,” Lawson recalled. “Now, I have a career ahead of me.”

Political Contradictions and Missed Opportunities

While Trump has frequently called for the revival of US manufacturing, tariffs alone can’t address the country’s growing skilled labor gap. Cutting off Job Corps funding directly undermines that goal, according to analysts and workforce experts.

So far, the White House has not responded to media inquiries on how eliminating Job Corps aligns with its manufacturing objectives.

“They’re helping kids that had no future make something of themselves,” Lawson said. “We need trades. We need welders. We need conductors. We need CNAs. We need these people.”

What Happens Next?

The fate of Job Corps now rests in the hands of Congress and the courts. While a preliminary injunction has delayed immediate shutdowns, long-term funding remains uncertain.

Unless Congress steps in, tens of thousands of young people could lose access to career training — and the American economy could lose one of its most reliable sources of skilled trades labor.