In a context of high unemployment, informal settlements represent the failure of South Africa’s labour market. A just urban transition places significant emphasis on economic considerations as central to any form of (climate-informed) development. Place-based, place-making and circular economy approaches hold significant potential for foregrounding the economic dimensions and potential of informal settlement upgrading. Through the creation of social value, public employment programmes can play a critical role in the transformation of informal settlements into resilient, safe and liveable neighbourhoods, as lessons from the Social Employment Fund show.