A new outcomes-based employment model is quietly reshaping how South Africa tackles youth unemployment — and it’s delivering results. The Jobs Boost Outcomes Fund, launched in mid-2024, has already placed over 3,070 young people into quality jobs across 107 employers, including many small and medium-sized enterprises (SMEs).
The fund, which ties financing to actual job outcomes rather than training inputs, is being hailed as a breakthrough in how public-private partnerships can catalyse youth employment in a more sustainable, impact-focused way. The programme is on track to exceed its goal of 4,500 employed youth by the end of 2025.
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A Model That Pays for Results, Not Just Training
At the heart of Jobs Boost is a simple but powerful concept: implementation partners only get paid when they deliver results. Under the current model, 12 partners receive 80% of their funding only after a jobseeker is placed in a full-time, formal job. The final 20% is paid once the candidate has remained employed for at least six months.
This approach stands in stark contrast to traditional skills development funding, where government or donors fund training programmes upfront, with no guarantee of job placement. In the Jobs Boost model, the risk is shifted from government to service providers, who are incentivised to customise their strategies for job market success.
“Implementation partners are motivated to innovate because their success is tied to actual employment outcomes,” says a spokesperson from Krutham, the fund’s programme manager.
Why It Matters for SMEs
With the average starting salary at R5,677/month, Jobs Boost jobs significantly outperform South Africa’s minimum wage threshold. For SMEs — many of which struggle to afford upfront recruitment and training costs — this model offers access to a pipeline of job-ready candidates without subsidised wages.
The approach also ensures long-term employment stability, since outcomes payments are tied to retention. This makes Jobs Boost not only a job creation tool but a workforce development strategy that aligns with small business needs.
Funding, Flexibility and Risk Management
Backed by R300 million in outcomes-based funding from the National Skills Fund as part of the Presidential Youth Employment Intervention (PYEI), Jobs Boost is also designed for adaptability. When one implementation partner was impacted by USAID funding cuts, the programme reallocated budget to other partners to keep the overall targets on track.
This level of risk management and budget flexibility is rare in public-sector-led youth programmes, which often lack the agility to adjust mid-course.
“This isn’t just about one programme — it’s a demonstration of how South Africa’s broader skills ecosystem can benefit from performance-based design,” says Krutham.
What’s Next?
With early success in hand, Jobs Boost is preparing to enter Phase 2 in late 2025, aiming to scale impact and attract additional investment. For SMEs, startups, and social enterprises alike, the model offers a practical, measurable framework to contribute to employment while building talent pipelines.
As global studies increasingly highlight the limitations of traditional job-readiness models, South Africa’s Jobs Boost fund may offer a roadmap for other economies looking to connect young people with real work — especially in sectors where SMEs are the primary job creators.
For more information visit Krutham’s website
