Youth unemployment represents a critical socio-economic challenge in South Africa, disproportionately affecting marginalised groups. This literature review synthesises existing research to analyse the contributions of the Non-Profit Organisation (NPO) sector in addressing this crisis, with a specific focus on the creation of dignified and fulfilling work. The review establishes that the sector is a significant employer and provides essential pathways to employment through direct job creation, skills development, vocational training, and support for youth entrepreneurship. However, a critical finding is the pervasive lack of consolidated, granular data, which obscures a precise understanding of the sector’s scale and impact, particularly regarding employment quality for marginalised youth. The analysis reveals a substantial knowledge gap; while the quantitative outputs of NPO-led initiatives are often documented, the qualitative aspects of job dignity, such as stability, fair remuneration, and opportunities for advancement, remain critically underexplored. Key structural challenges, including funding instability and the precarious nature of many NPO-funded positions, further complicate the sector’s ability to deliver sustainable employment. The review concludes that while South African NPOs are indispensable in mitigating youth unemployment, strategic improvements are needed. These include enhancing data collection mechanisms, fostering sustainable funding models, and prioritising the creation of high-quality, dignified work to fully realise the sector’s potential in fostering sustainable economic inclusion for South African youth.