South Africa has a large unemployment rate and income inequality issues.

"Unemployment is extremely high and income inequality is approximately equal to Brazil. During 1995-2003, the number of formal jobs decreased and informal jobs increased; overall unemployment worsened. The average South African household income decreased considerably between 1995 and 2000. As for racial inequality, Statistics South Africa reported that in 1995 the average white household earned four times as much as the average black household. In 2000 the average white household was earning six times more than the average black household. The affirmative action policies have seen a rise in black economic wealth and an emerging black middle class."

High unemployment rate lead to many problems for any country. South Africa, in particular, must deal with high crime, low skilled labor and income inequality.