Unpacking South Africa’s Persistent Youth Unemployment Challenge

South Africa grapples with one of the highest youth unemployment rates globally, a crisis that has deepened over the past decade. According to Statistics South Africa’s Quarterly Labour Force Survey for the fourth quarter of 2025, the unemployment rate for youth aged 15-24 stood at approximately 57%, with 1.5 million young people actively seeking work but unable to find it, compared to just over 1.1 million employed in this group. Broadening to ages 15-34, the figure hovers around 43-46%, affecting millions and contributing to high Not in Employment, Education, or Training (NEET) rates of about 34% for 15-24-year-olds. This situation is exacerbated in provinces like the Eastern Cape (42.5% overall unemployment) and North West, where structural barriers such as limited skills alignment with market needs and geographic isolation play key roles.

Youth unemployment, defined by Stats SA as those aged 15-34 without paid work but available and seeking employment, disproportionately impacts women, rural dwellers, and those without post-secondary qualifications. For instance, university graduates fare better at around 24% unemployment, yet even they face hurdles in a labor market dominated by informal and low-skill sectors. The community and social services industry, which encompasses many non-profit activities, employs over 4 million people nationally, highlighting potential avenues yet underscoring the need for targeted interventions.

• High NEET rates signal lost productivity and social instability.
• Gender disparity: Women youth unemployment often exceeds 50%.
• Provincial variations demand localized strategies.

This backdrop sets the stage for emerging research revealing overlooked contributors to youth job creation.

The Landmark Wits University CAPSI Study on NPOs

Researchers at the University of the Witwatersrand’s Centre on African Philanthropy and Social Investment (CAPSI), housed within Wits Business School, have delivered groundbreaking insights through their 2025 literature review and subsequent surveys. Titled “Contributions of the Non-Profit Sector to the South African Economy: A Focus on Creating Dignified and Fulfilling Work for the Youth,” the study synthesizes data showing non-profit organisations (NPOs) as major yet underrecognized employers of young South Africans.

CAPSI, dedicated to advancing philanthropy and social investment across Africa, partnered with Social Surveys Africa for empirical validation. Their work emphasizes “dignified work”—roles offering reliable income, respect, skill growth, and purpose—beyond mere job placement. While quantitative outputs like training numbers are tracked, qualitative impacts like job sustainability remain underexplored due to data gaps.

The study builds on CAPSI’s broader African project, including partnerships with entities like the Mastercard Foundation, positioning Wits as a leader in higher education-driven solutions to socio-economic issues. For South African universities, this underscores the value of research centers like CAPSI in informing policy and practice.

Key Findings: NPOs’ Surprising Scale in Youth Employment

Surveys revealed that about 30% of respondents had secured work through an NPO in the past five years, with another 30% benefiting from NPO-linked training, education, or entrepreneurship programs. These figures position NPOs among South Africa’s largest youth employers, particularly for marginalized groups like rural youth and women excluded from formal markets.

Bev Russell, CEO of Social Surveys Africa, noted, “Non-profits often reach young people who are excluded from the mainstream labour market.” Roles, though often temporary (most under three years, many less than one), serve as critical entry points, building skills and networks for transitions to stable jobs. Sectors like education, agriculture, ICT, and advocacy dominate NPO youth hiring.

In a nation where formal labor stats undercount project-based NPO work, this hidden footprint challenges policymakers to recalibrate economic models. Higher education institutions like Wits contribute by quantifying these impacts, aiding graduates eyeing non-profit careers.

How NPOs Foster Dignified and Fulfilling Work

Non-profit organisations go beyond job provision, emphasizing holistic development. Youth workers in NPOs offer mentorship, career guidance, and vocational training, complementing government efforts like the Presidential Youth Employment Intervention. For example, programs in community services equip participants with soft skills like leadership and digital literacy, vital for long-term employability.

Dignified work, as defined in the CAPSI framework, includes fair pay, growth opportunities, and purpose alignment. NPOs excel here by prioritizing marginalized youth, fostering entrepreneurship through micro-grants and incubators. This approach not only alleviates immediate poverty but builds resilience against economic shocks.

For university students and alumni, NPO stints offer practical experience complementing academic credentials. Explore higher ed career advice for tips on leveraging such opportunities.

Challenges Facing the NPO Sector

Despite promise, NPOs battle funding instability—project cycles dictate short-term roles—and data invisibility in national stats. Precarious positions hinder scalability, while regulatory hurdles limit foreign funding. The CAPSI review identifies these as barriers to sustainable impact.

• Funding tied to donors leads to job insecurity.
• Lack of granular data obscures policy advocacy.
• Competition with for-profits for skilled youth talent.

South African universities can bridge gaps via partnerships, as seen in Wits’ collaborations. Check university jobs in South Africa for roles in research and community engagement.

Photo by ling ze on Unsplash

Real-World Case Studies: NPOs in Action

Harambee Youth Employment Accelerator, while scaling nationally, exemplifies NPO-like models placing thousands in dignified roles via skills matching. Action Volunteers Africa provides volunteer-to-employment pathways, focusing on township youth. In Gauteng, NGOs like those studied by REDI3x3 act as intermediaries, linking youth to workplaces.

These cases show step-by-step processes: recruitment via community networks, training modules, placements, and alumni tracking. Outcomes include 20-30% transition rates to permanent jobs. For higher ed grads, such programs offer adjunct roles or research positions. Browse higher ed jobs for similar opportunities.

Skills Development and Pathways to Formal Employment

NPOs excel in bridging education-to-work gaps, offering vocational training aligned with SA’s National Development Plan. Programs in digital skills, agriculture, and hospitality prepare youth for green economy shifts. Wits’ research advocates measuring these pathways quantitatively.

Universities like Wits integrate NPO internships into curricula, enhancing graduate employability. Step-by-step: assessment, customized training, placement, mentorship—leading to 30% better job retention per studies.

Policy Implications and Recommendations

CAPSI urges better data tracking, stable funding via tax incentives, and NPO inclusion in labor policies. Government-NPO-private tri-sector partnerships could scale impacts. For higher ed, this means more community-engaged research funding.

• Invest in NPO data systems.
• Extend funding beyond projects.
• Integrate NPO metrics in QLFS.

Read the full CAPSI report

Implications for Higher Education Graduates

Wits’ study signals booming NPO careers for uni grads in program management, research, and advocacy. With SA’s higher ed emphasizing social impact, grads are primed for these roles. Platforms like AcademicJobs connect talent to such positions.

Visit university jobs and higher ed jobs for faculty and admin openings at institutions partnering with NPOs.

Future Outlook: Scaling NPO Impact

With youth cohorts growing, NPOs could absorb thousands more via digital platforms and green initiatives. Wits’ ongoing research promises refined strategies. Optimism lies in tri-sector collaboration, potentially halving entry-level barriers by 2030.

For youth and grads, actionable steps: volunteer with NPOs, upskill via free online courses, network via university career centers. AcademicJobs supports this with resources like rate my professor for informed choices.

Photo by Johnny Briggs on Unsplash

Conclusion: Time to Recognize and Empower NPOs

The Wits CAPSI study reframes NPOs from service providers to vital job architects. By addressing challenges, South Africa can unlock youth potential, fostering inclusive growth. Explore opportunities at higher ed jobs, higher ed career advice, and university jobs. Share your insights in the comments below.