Politics & Government

$2 Million Jobs Program, Offering Wage Subsidies for New Hires, Launched In SMC

The County will cover up to 50 percent of a new employee's wages for three months for businesses that create new jobs.

REDWOOD CITY, CA — The San Mateo County Board of Supervisors unanimously approved a $2 million initiative Tuesday aimed at boosting employment for residents and providing economic support to local businesses that are expanding their workforce.

The Workforce Entry & Economic Growth Initiative, proposed by District Three Supervisor Ray Mueller, allows the county to subsidize the wages of new, full-time employees, particularly those who are just starting or returning to the job market. This includes recent graduates who have completed a degree or certificate program within the last three years.

The program is designed to address the challenges facing both new workers and small businesses in the current economic climate.

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“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.”

Under the plan, subsidies will be offered to small and medium-sized businesses, with 500 or fewer employees, that create new, full-time positions. The county will cover up to 50 percent of a new hire’s wages for the first three months, capped at the equivalent of a $65,000 annual salary. To ensure long-term stability, participating employers must commit to retaining the subsidized position for at least one year.

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The county estimates the program has the potential to support the creation of up to 200 new private-sector jobs.

Mueller emphasized the program’s focus on people over spreadsheets.

“It’s about graduates who want to stay here, build careers here and build lives here,” Mueller said. “It’s about small businesses that are ready to grow, if given the right support. And it’s about making sure San Mateo County’s prosperity is human-centered.”

Next steps for the initiative involve the county issuing a competitive Request for Proposals to select a partner organization that will administer the program and connect eligible job seekers with participating employers.

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