Purpose: The purpose of this paper is to explore youth graduate unemployment and unemployability as a development problem in South Africa. Design/methodology/approach: This exploratory study applied a qualitative research method to elicit the perspectives of youth graduates regarding their unemployment and unemployability. A total of 30 face-to-face semi-structured interviews were conducted with unemployed youth who recently graduated from five South African universities. Findings: The results indicate that, as youth graduate unemployment increases in South Africa, graduates become hopeless in terms of securing employment. The participants attributed their unemployment to multidimensional factors that include limited demand in the labour market, skills mismatch and lack of work experience. Research limitations/implications: This research exclusively focused on graduates from five South African universities; hence, the results of this small qualitative study cannot be generalised to the entire South African population. However, this paper offers important insights that may form the foundation for a nationwide study on a related topic. Originality/value: This paper presents important insights that influence policy makers, government and other relevant stakeholders to develop alternative solutions to youth graduate unemployment. This paper recommends that government should play a critical role in bridging the gap between higher education and industry in order to address youth graduate unemployment. It also calls for a more cooperative effort between government, higher learning institutions and employers in order to create job opportunities for youth graduates in South Africa.