San Mateo County has launched a new initiative to enhance local employment opportunities by approving a budget of at least $2 million. This program, known as the Workforce Entry & Economic Growth Initiative, aims to connect recent graduates and other job seekers with local businesses. The initiative, proposed by Supervisor Ray Mueller and unanimously approved by the county board, will subsidize wages for new hires entering or reentering the workforce.
The program specifically targets recent graduates and adults who have completed degree or certificate programs. Supervisor Mueller cited several economic factors, including the growing influence of artificial intelligence, as challenges for new entrants to the job market. “In the current economy, recent graduates are finding it more difficult to find entry-level jobs,” Mueller noted. He emphasized that tariffs, inflation, and rising living costs are significantly impacting small business owners. “This initiative is about keeping doors open in the workforce, creating economic stability for small businesses, and ensuring the economy remains accessible to workers.”
Program Details and Eligibility
To qualify for the program, small- and medium-sized businesses with 500 or fewer employees must create new, full-time positions that offer a minimum salary of $55,000 per year, including benefits. Under this initiative, the county will subsidize half of the new hire’s wages for the first three months, with a cap equivalent to an annual salary of $65,000. Employers will have the option to offer higher salaries using their own funds and must retain the new position for at least one year. There are no restrictions on the type of jobs created.
County officials estimate that this program could result in the creation of up to 200 new positions. Despite a relatively low unemployment rate of approximately 3.5% in San Mateo County, this translates to roughly 14,900 unemployed residents, according to the California Employment Development Department. Notably, the unemployment rate for Californians aged 20 to 24 is significantly higher, at around 10%.
Funding and Future Plans
The funding for this initiative will be sourced from the county’s general fund, which operates under a total budget of $5.5 billion. The approval of this program coincided with a midyear budget update that highlighted broader county priorities, including investments in housing, support for children and families, and emergency preparedness.
San Mateo County frequently ranks among the most unaffordable regions in the United States, with individuals earning under $109,000 classified as low-income. “This is about more than numbers on a spreadsheet,” Mueller remarked. “It’s about graduates who want to stay here, build careers here, and build lives here.”
In the upcoming weeks, the county plans to issue a competitive request for proposals to select a local organization that will oversee the implementation of this job subsidy program.
