In an effort to boost local employment, San Mateo County approved at least $2 million this week to launch a hiring initiative aimed at linking recent graduates and other job seekers with local businesses.
The Workforce Entry & Economic Growth Initiative, proposed by Supervisor Ray Mueller and passed unanimously by the board, would subsidize wages for new hires entering or reentering the workforce, including recent graduates and adults who have completed degree or certificate programs.
Mueller pointed to economic shifts and rising living costs as reasons for launching the initiative.
“In the current economy, and with the greater adoption of artificial intelligence, recent graduates are finding it more difficult to find entry-level jobs,” Mueller said. “Additionally, tariffs, inflation and rising costs are adversely affecting small business owners. This initiative is about keeping doors open in the workforce, creating economic stability for small businesses and making sure the economy remains accessible to workers.”
To qualify, small- and medium-sized businesses with 500 or fewer employees must create new, full-time positions that pay at least $55,000 a year with benefits.
Under the program, the county would subsidize half of a new hire’s wages for the first three months, capped at the equivalent of a $65,000 annual salary. Employers could pay higher wages using their own funds and would be required to keep the newly created position for at least one year. There are no restrictions on job type.
County staff estimates the program could spur the creation of up to 200 new positions.
San Mateo County’s unemployment rate is about 3.5% — among the lowest in California — but that still represents roughly 14,900 unemployed residents, according to the California Employment Development Department. Statewide, unemployment among Californians ages 20 to 24 remains significantly higher, at about 10%, compared with an overall rate of about 5%.
The program will be funded through the county’s general fund, which currently operates under a $5.5 billion budget.
Its approval came as officials also received a midyear budget update outlining broader county priorities, including housing, investments in children, youth and families “to advance long-term stability, well-being and economic opportunity,” as well as emergency preparedness.
San Mateo County also consistently ranks among the most unaffordable places in the country, with individuals earning under $109,000 considered low income.
“This is about more than numbers on a spreadsheet,” Mueller said. “It’s about graduates who want to stay here, build careers here and build lives here.”
In the coming weeks, the county will issue a competitive request for proposals to select a local organization to oversee the program.
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