San Mateo County Board of Supervisors OK program to subsidize wages of entry-level workers

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 fewer 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.