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The San Mateo County Board of Supervisors unanimously approved an initiative on Tuesday aimed at helping entry-level workers secure jobs by subsidizing their wages.
The Workforce Entry and Economic Growth Initiative, introduced by District 3 Supervisor Ray Mueller, will allocate $2 million to create an estimated 200 new positions at small and medium-sized companies.
Mueller crafted the initiative in response to the hiring challenges faced by young adults who are transitioning from college to the workforce.
The unemployment rate for people aged 20 to 24 in the state was more than 10% in May 2025, a 54% increase since 2022, according to the Public Policy Institute of California. Hiring rates have also declined compared to the post-COVID-19 pandemic period, according to the Public Policy Institute.
“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 in a statement. “Additionally, tariffs, inflation and rising costs are adversely affecting small business owners.”
The $2 million will be used to temporarily subsidize part of the wages of new, full-time and entry-level hires who have recently graduated with a degree or trade certification within the last three years. The subsidized positions will be in career areas that make at least $55,000 annually.
Subsidies would cover up to 50% of the new hire’s wages for the first three months of employment, and businesses that participate must agree to employ the new hire for at least one year with full-time benefits.
Businesses eligible for the program must have 500 or less employees, and those selected for the program will be able to have a maximum of three subsidized hires.
The $2 million will come from the county’s General Fund.
The county will soon issue a request for proposals to select an organization that will administer the program.
“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. It’s about small businesses that are ready to grow, if given the right support.”
