South Africa's economy faces a number of challenges. At 23 percent, the unemployment rate is high relative to other countries. Interestingly, this is the lowest rate on record for South Africa since the year 2000. While the latest labor force surveys show reasonable job creation at the national level, the figures being achieved will not allow the government to reach its goal of cutting the unemployment rate in half by 2014. At the present rate of job creation, unemployment will only drop only by one-quarter by that year.

Consumer confidence has fallen to a four-year low. Higher food and gas prices have knocked the confidence of low income earners. There have been substantial protests over the rolling electricity black-outs experienced earlier this year. Work shortages have had a negative impact, both upon output and job levels, in several South Africa industries. Mining, clothing manufacturing and construction have experienced the most negative impact. Housing prices, as in most of the world, have lost forward momentum and have introduced some concern into the consumer market. Stock volatility has unsettled even high income earners.