Inflation and Job Scares Fuel Risk of Civil Unrest, Edelman Says

(Bloomberg) -- A global inflation scare and concerns that economic shifts will erode jobs is feeding perceptions that the world is becoming increasingly unfair, threatening civil unrest as a response, according to communications firm Edelman.

The world has entered an “age of grievance,” said Richard Edelman, chief executive of the namesake firm. He cited a survey conducted Oct. 25-Nov. 16 among more than 33,000 respondents in 28 countries that found an unprecedented lack of faith in governments, business leaders and the media.

About two-thirds of respondents said they feel discriminated against, up 10 percentage points in a year. Three quarters of respondents worry about their pay not keeping up with inflation, while around 60% are concerned about job losses due to international trade conflicts, economic pressures or AI. Only 36% believe that things will be better for the next generation.

Last year saw governments across the world being ousted in elections, reflecting deep-running dissatisfaction with established regimes. Populists critical of established leaders have emerged as winners — with potentially grave consequences for so-far unquestioned economic models and social rules.

More than half of survey respondents believe that capitalism does more harm than good, including 55% of 18–34-year-olds. The majority of young adults also considers disinformation, online attacks or violence to persons or property an appropriate way to bring about change.

Survey results show a correlation between trust and economic growth that explains why Saudi Arabia, the UAE, and India consistently show high levels of institutional trust — while the opposite is true for countries including Germany, Japan, and South Korea where governments are experiencing economic and political travails.

“The most pressing need is to restore economic optimism,” said Edelman. “Our research tells us that when people see solutions, they’re more hopeful and willing to sacrifice for the greater good. When trust is earned, optimism grows.”

The report comes just ahead of the World Economic Forum’s annual meeting in Davos. The forum’s risk report, published last week, showed misinformation and disinformation was policymakers’ primary worry on a two-year horizon.