Faltering social mobility Technological change, geoeconomic shifts and tighter fiscal space are together weakening the pathways to social mobility and eroding trust. Even as nationalist and polarizing rhetoric has sought to tap into the rising economic concerns of some segments of societies, in most parts of the world growth is not just subdued relative to the past, but also increasingly K-shaped, in which some sectors of the economy do well while others struggle. As a result, expectations of lack of economic opportunity or unemployment exacerbate declining trust. The aftermath of the 2008 financial crisis and the COVID-19 pandemic, compounded by technological and structural economic shifts, have strained traditional pathways to social mobility. Real wages have recently ticked up in most advanced economies, reaching an average of 2.5% annual growth across the OECD as of Q1 2025. However, in 18 of the 37 countries, real wages remained below their level in Q1 2021, just prior to the global inflation spike of 2021-2022.36 Moreover, this followed over a decade of mediocre real wage growth in advanced economies, in particular. Real wage growth was highest from 2008-2019 in South Korea (22% over the whole period) and Germany (15%), while real wages declined over that timeframe in Italy, Japan and the United Kingdom.37 Meanwhile, real residential property prices in advanced economies have risen 20% between 2008 and today, and 37% since their trough in 2012.38 Asset holders, including property owners and those who have invested in financial assets, have experienced rising wealth, while wage earners who do not own assets struggle amid rising living costs. This has contributed to Societal polarization and a loss of trust among lower- and middle-income groups. These tensions are reflected in the EOS (Figure 35). Lack of economic opportunity or unemployment is perceived as the top risk in 27 countries and within the top five in 72 countries. Weak and uneven job creation and a sense of stalling social mobility and rising inequality is central to the erosion of the social contract. A rise in “streets versus elites” narratives reflects deepening disillusionment with traditional governance structures, leaving many citizens feeling excluded from political decision making processes and increasingly skeptical that their economic environments can deliver tangible improvements to their livelihoods. Inequality was selected by respondents as the most interconnected global Executive perceptions of Lack of economic opportunity or unemployment, 2026–2028 FIGURE 35 Source World Economic Forum Executive Opinion Survey 2025.Executive Opinion Survey rank of national risks from the question “Which ﬁve risks are the most likely to pose the biggest threat to your country in the next two years?” 1st10th20th30th34thRank Global Risks Report 2026 37