Are economic distress, joblessness driving UK riots?

After the mass knifing incident, resulting in the death of three girls in Southport on July 30, rioting and unrest have spread to multiple cities across the UK. Rioting spread on the back of misinformation that far-right extremists allegedly led as part of their wider tactics. It began with a false claim that the accused knifer was a Muslim asylum seeker who had arrived in the UK by boat. Later, it came to public knowledge that the person was a British citizen, born to Rwandan immigrants.

The UK Prime Minister Keir Starmer has warned that rioters will have to face the full force of the law. Though rumours and misinformation are carrying the unrest from one place to another, these ongoing riots in the UK cities, including Sunderland (the current epicentre) and Southport (the source) are linked to underlying economic distress, unemployment, and broader economic stagnation.  

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Here’s a brief examination of the key economic issues contributing to the unrest. It is the case context and unresolved legacy issues as happens in all cases of unrest.

Economic stagnation

Sunderland, like many other parts of the UK, has faced significant economic decline over the past few decades. From 1975 to 1989, the city lost a quarter of its jobs due to the decline of coal mining and shipbuilding industries. This historical decline has left a lasting impact on the city’s economic vitality. The loss of these industries, which once formed the backbone of Sunderland’s economy, has resulted in a long-term struggle to revitalise and diversify the local economy.

Economic stagnation in Sunderland has created a fertile ground for frustration and discontent. The city has been unable to recover fully from its industrial decline, and the lack of economic opportunities has left many residents feeling trapped and hopeless. The stagnation is not just a local issue but reflects broader economic challenges faced by many regions in the UK that were once industrial powerhouses.

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This is not the first time that the UK has witnessed riots across cities that have issues rooted in economic realities. In 2011, Tottenham in north London saw a lot of violence during the unrest triggered by the police shooting of a 29-year-old black man. A year later, the Citizens Inquiry into the Tottenham Riots report blamed one of the most violent riots in the UK capital on high “joblessness” and “toxic relations” between the police and citizens. Economic distress, anywhere, needs just a small spark to flare up the accumulated societal anger.

Low wages and youth unemployment

Years of economic deprivation have led to persistent joblessness in Sunderland and similar cities. As of early 2024, Sunderland’s unemployment rate stands at approximately 7.2%, higher than the national average of around 4.8%.  

Youth unemployment in Sunderland is particularly concerning, with rates estimated to be above 15%, reflecting significant challenges for young people entering the workforce. Despite some signs of recovery, the local economy has not rebounded sufficiently to provide ample employment opportunities for its residents.

Average wages in Sunderland remain lower than the national average. Economic master plans highlight the ongoing wage disparity, which exacerbates feelings of economic injustice and frustration among residents.  

The median annual wage in Sunderland is around £22,000, compared to the UK median of £25,000, indicating a significant wage gap that affects the standard of living for many families. This wage disparity is a critical factor driving economic frustration and social unrest.

Brexit impact on the UK’s overall economy, deepening distress

The 2016 Brexit vote was heavily influenced by economic fears and dissatisfaction. The UK expected to gain from Brexit. The leadership blamed emerging economic distress on the economies across the English Channel, the European mainland countries. However, Brexit and the subsequent Covid-19 pandemic only deepened the economic distress in British society.

For example, Sunderland’s 61.3% vote for Brexit was seen as a reflection of working-class discontent and concerns over uncontrolled migration from the EU. While Brexit proponents promised economic rejuvenation, many areas have struggled with the subsequent economic uncertainties and disruptions. The promise of economic revival has yet to materialise for many in Sunderland, exacerbating frustrations and discontent.

Brexit has also had a broader impact on the UK’s economy, affecting trade, investment, and labour markets. The uncertainty surrounding Brexit negotiations and the new trade agreements have created a challenging environment for businesses, leading to decreased investment and economic growth. The disruption in supply chains and changes in trade regulations have also affected industries that are crucial to the UK’s economy, deepening the economic distress in many regions.

Immigration and economic frustration

Sunderland’s unanimous vote in 2022 to become a City of Sanctuary, welcoming asylum seekers and refugees, has been a contentious issue. While some residents support this move, others see it as a strain on already limited resources. The perception that immigrants receive government handouts while local citizens struggle with basic needs has fuelled anti-immigrant sentiments. This belief, whether accurate or not, has contributed to the unrest and anti-immigrant rhetoric.

There is a widespread belief among residents that immigrants are given preferential treatment in housing and benefits, which has added to the economic frustration. In Sunderland, approximately 22% of working-age adults are on Universal Credit, reflecting high levels of economic distress.  

Many residents rely on housing benefits to afford accommodation, with nearly 25% of households receiving some form of housing benefit. These perceptions and economic realities have heightened tensions and contributed to the recent riots.

Rise of far-right creating social tensions

Economic stagnation has created a fertile ground for far-right and extremist racist views. Political figures like Nigel Farage have capitalised on economic and migration concerns to garner support. His Reform UK party’s strong performance in recent elections in Sunderland underscores the link between economic distress and the rise of far-right sentiments. Farage’s rhetoric has resonated with those feeling left behind by mainstream political parties, further polarising the community.

The economic divide has also exacerbated social tensions, with residents feeling disenfranchised and fearful for the future. The riots have been partly attributed to both local frustrations and the influence of outside agitators preying on these economic and social insecurities. The social fabric of communities like Sunderland has been strained by these divisions, leading to an environment ripe for conflict.

The riots in Southport, Sunderland and other parts of the UK can be traced back to deep-rooted economic issues — historical industrial decline, persistent unemployment, low wages, and the impact of Brexit and the pandemic. These economic challenges, coupled with concerns over immigration and reduced social services, have created a volatile environment where frustration and anger have boiled over into violence.  

Addressing these underlying economic issues is crucial for fostering social cohesion and preventing further unrest, and a massive challenge for the newly inducted Starmer government. Starmer may do well to bring out comprehensive economic policies and targeted support measures to alleviate the economic distress and rebuild trust within these communities.