This article pays attention to youth unemployment as one of the most serious socioeconomic challenges in South Africa. The nature of unemployment in South Africa is followed by a discussion on the interconnectedness between unemployment and poverty. The psychological and theological meaning of work is discussed in short, followed by the psychological effect of unemployment. In order to indicate how unemployment undermines human dignity, certain theological themes on human dignity are outlined. The final section explores ways in which the church could assist in affirming human dignity in the context of unemployment.