The COVID trust deficit & why you should worry
40%+ of Gen-Z say they feel left behind and that they are angry at the rich and powerful because of the pandemic. This is a crisis.
Five years on from the global COVID pandemic, the damaged caused by government and business actions, and media reporting, extends well beyond health impacts.
The recently released 2025 Edelman Trust Barometer special report into the Unseen Impacts of COVID reveals a trifecta of challenges: widespread anti-business resentment, a psychologically damaged Gen Z workforce, and deteriorating faith in scientific institutions.
This isn't just aftermath—it's today's operating environment.
So what?
According to the report and other related research found:
- Trust in businesses to handle future crises plummeted below 50% in three major markets (Brazil, UK, US), creating a precarious foundation for the next inevitable global disruption.
- The 61% of young adults experience financial anxiety, representing a workforce mental health crisis and a looming consumption pattern shift that will affect market forecasts.
- 60-69% of respondents (across markets) have the perception that businesses opportunistically raised prices during COVID, creating a lingering authenticity gap that transcends standard reputation management.
- Scientific authority's erosion—especially in the US where 62% believe their countrymen reject science—signals that evidence-based corporate communications may face unprecedented resistance.
- The politicization of healthcare choices—48% of 18-34 year-olds choose providers based on political alignment—forecasts how your employee benefits programs will be perceived and utilized.
Counterpoint: The political powder deg
Everyone's analyzing these findings as a trust problem, but they've overlooked the impending political instability these metrics predict.
With 40% of young adults feeling "left behind" and "angry at the rich and powerful," we're witnessing the preconditions for radical political movements. Something not even the 2008 global financial crisis could achieve.
The trust gap is about governing legitimacy: of government and business. When 67% of Brazilians and 66% of Americans report increased grievances against institutions and "elites," that's pre-revolutionary sentiment, not consumer feedback.
Most concerning is the generation-specific impact. A cohort deciding against parenthood (27% of young Americans) while simultaneously losing faith in institutions creates a demographic with little stake in maintaining the status quo.
Expect ongoing electoral volatility in mature democracies, with polarization on the left and right. Reference the rise of not only the far right AfD in Germany but also Die Linke, the direct descendant of the Marxist–Leninist ruling party of former East Germany, that added 25 seats in the recent Bundestag elections.
Navigating a new reality in 2025
For business leaders, the implications of these trust shifts are not just reputational—they are structural.
The erosion of confidence in institutions, including business itself, is reshaping consumer behavior, workforce expectations, and regulatory landscapes. While the Edelman research may signal volatility, they also highlight critical areas where proactive leadership can create stability and differentiation.
Rather than viewing declining trust as a crisis to be managed reactively, organizations that lean into transparency, fair pricing strategies, and authentic engagement with employees and consumers will be best positioned for long-term resilience.
Business leaders must recognize that trust, once damaged, is not easily restored through communications alone—it requires tangible proof points in actions, policies, and business models.
The generational shift in attitudes toward work, wealth, and institutions also presents an opportunity for forward-thinking leaders. Addressing financial anxiety among younger employees through meaningful benefits, career development, and fair compensation isn’t just a social good—it’s a competitive advantage in an increasingly fragmented labor market.
Likewise, a sophisticated approach to public discourse, one that acknowledges politicization but avoids inflaming it, will be essential for corporate credibility.
While some may interpret these trends as harbingers of instability, history suggests that markets and institutions adapt to shifting expectations.
Businesses that recognize these changes early and integrate them into strategy—rather than resisting or dismissing them—will navigate the future more effectively. The next five years will favor leaders who balance pragmatism with foresight, building trust not as a PR objective, but as a foundation for sustained success.
