Abstract
The recent surge of interest in the voluntary sector has inspired suggestions that unemployment could be significantly reduced by creating jobs in non-profit organizations, notably those active in social and community services. This article outlines the debate, examining recent trends in the sector's employment and resources, and the conditions in which non-profit organizations provide social services more efficiently than government and for-profit enterprises. Some promising innovative initiatives are reviewed. However, though the sector is potentially a renewed source of inspiration for the public sector, it should not be viewed as the panacea for employment and social policy problems.