The Centre for Youth Development at the University of Venda and Umsobomvu has unveiled plans to address the skills shortage and help unemployed graduates.
The two institutions pledged to improve skills levels among graduates who are unable to enter the job market.
More than R2million will be spent on developing a programme that will be conducted at the university.
Development and corporate relations officer Balanganani Makhado says the programme will help improve job hunting and interviewing skills of the graduates .
The centre will help participants obtain learner's and driver's licences.
The programme will run for three years and 200 graduates will be trained a year.
Makhado says the centre will serve as a recruitment ground for companies.
"We will talk to companies and government departments to recruit from our centre," Makhado says.
He says experts have always expressed concern about the number of graduates who are unemployable because they lack basic skills.
He says some graduates fail to get jobs because they are unable to make good presentations during job interviews.
An information centre will also be established to help youths access the information they need.
The university has also established a maths and science centre in Vuwani to train teachers and pupils in these subjects.
The centre recently received R1,3 million from Nissan.