Introduction
In recent years anti-globalisation sentiment has intensified, especially in developed economies such as the United Kingdom and the United States. While globalisation, defined as the increasing integration of economies through trade, labour flows and capital mobility, has generated substantial benefits in the form of higher growth, improved efficiency and wider consumer markets, it has also created winners and losers. The economic costs borne by certain segments of society have led to growing frustration, feeding populist movements, trade protectionism and political shifts such as Brexit. These sentiments are driven by two key concerns: rising income inequality and the rising cost of living.
Income inequality and labour market displacement
One of the most significant sources of anti-globalisation sentiment is widening income inequality, particularly among low-skilled workers. In the UK, membership of the EU meant upholding the free movement of labour, which allowed a large influx of workers, especially from Eastern Europe. The entry of low-skilled migrants increased the supply of labour, shifting the labour supply curve rightward. In sectors with more manual or routine work, such as logistics, construction and hospitality, the wage rate fell, and domestic workers either had to accept lower wages or faced displacement. At the same time, demand for high-skilled labour in finance and technology continued to rise due to global connectivity and outsourcing, creating a wage divergence that benefited professionals and urban elites while leaving many working-class citizens worse off. In post-industrial regions such as the North of England and parts of the Midlands, economic stagnation was perceived to be worsened by globalisation, as manufacturing and mining jobs were outsourced to lower-cost countries, and many viewed immigration and global labour competition as causes of depressed wages.
Rising cost of living and inflation pressures
In addition to labour market concerns, the rising cost of living has fuelled dissatisfaction with global integration. In theory, globalisation should reduce prices through greater competition and cheaper imports, but in practice demand-pull and imported inflation have emerged as pressing challenges. As the UK economy opened up, foreign direct investment and migration increased significantly, boosting aggregate demand (AD). Higher consumption, investment and net exports shifted the AD curve rightward, and in sectors like housing and services this put upward pressure on prices, contributing to demand-pull inflation, while wage growth remained relatively stagnant for middle and lower-income groups, meaning real incomes fell over time. Moreover, the UK's heavy reliance on imported goods, including food, energy and manufactured inputs, made it vulnerable to imported inflation. Disruptions to global supply chains, whether from geopolitical tensions such as the Russia-Ukraine war or the COVID-19 pandemic, caused supply shocks that drove up global prices, which were passed on to UK consumers in the form of sharp increases in fuel, food and utility prices.
Conclusion
In summary, while globalisation has delivered long term economic benefits in trade, efficiency and innovation, its short term distributional effects have led to mounting anti-globalisation sentiment, especially in developed countries. Income inequality, job insecurity and the rising cost of living have created a sense of exclusion and resentment among certain population segments, particularly those in rural or deindustrialised areas, who increasingly perceive globalisation as a threat rather than an opportunity.