This literature review examines the role of the non-profit sector in Tanzania and its contribution to youth employment. It explores how non-profit organisations are conceptualised and classified within national economic frameworks and assesses whether their contributions to employment are recognised. While these organisations support service delivery and community development their role in employment generation remains unexamined in official labour statistics. Employment data do not distinguish non-profit organisations as a separate sector and this makes it difficult to assess their impact on the labour market. The review analyses youth employment patterns and finds that young people form a large segment of the working-age population but often face informal and unstable work conditions, including within the non-profit sector. Evidence from government reports and sector studies suggests that non-profit organisations create employment opportunities but these remain small in scale and financially uncertain. Career progression in the sector is also limited. The absence of systematic data on youth employment in non-profit organisations contributes to their exclusion from national employment policies. Addressing this gap is necessary to establish the sector’s full potential in supporting youth employment and economic development.