Has climate change impacted the labor market around the globe?

At a glance, one might wonder if climate change could actually have a significant impact on the labor market around the world. But unfortunately, the data suggest that the increasing effects of climate change impact sectors like food & agriculture, service, and manufacturing.

The increasing frequency and intensity of various environment-related hazards caused or exacerbated by human activity have already reduced labor productivity. As per a survey from the International Labor Organization, between 2000 and 2015, 23 million working-life years were lost annually at the global level due to such hazards. Among the members of the G20, China, Brazil, and India were the most affected countries. Here. Archived.

The effects of climate change on the labor market are complex and multifaceted. However, the most immediate impact is likely felt in industries directly dependent on natural resources, such as agriculture, fishing, forestry, and tourism. 

However, in addition to these direct effects, climate change will likely impact the labor market indirectly. For instance, it could lead to changes in consumer behavior and preferences and government policies and regulations, affecting the demand for certain goods and services and the types of jobs available.

In seeking to understand the relationship between the world of work and climate change, there are at least three key aspects 

• Jobs that Directly and indirectly rely on the services that ecosystems provide.
• Jobs and good working conditions rely on the absence of environmental hazards.
• The risks and hazards associated with environmental degradation tend to affect vulnerable workers the most. Here. Archived.

Jobs that Directly and indirectly rely on the services that ecosystems provide.

Climate change can directly affect jobs in industries that depend on ecosystems, such as forestry, fisheries, agriculture, and tourism. For example, rising temperatures, changes in rainfall patterns, and extreme weather events can damage crops, forests, and fisheries, leading to lower yields and income for workers who rely on these resources. Climate change can also affect tourism by damaging natural attractions and disrupting travel patterns.

It also indirectly impacts jobs that depend on ecosystem services. For example, ecosystem changes can affect the availability and quality of water resources, impacting industries such as energy production and manufacturing. Ecosystem changes can also affect the spread of diseases, impacting public health and the healthcare sector. In addition, changes in ecosystems can affect the availability of raw materials, impacting industries such as construction and mining.

Jobs and good working conditions rely on the absence of environmental hazards.

Climate change can impact working conditions by introducing new environmental hazards or exacerbating existing ones. To ensure good working conditions, employers may need to address these hazards, such as providing protective equipment, implementing safety protocols, and adapting workplaces to withstand extreme weather events better. Additionally, policymakers and businesses need to take action to mitigate climate change to prevent these hazards from becoming more widespread and severe over time. Climate change, in so far as it affects temperature and rain patterns, may render entire regions unproductive and make workplaces too hot for work, leading to climate-induced migration. Here. Archived.

The risks and hazards associated with environmental degradation tend to affect vulnerable workers the most.

Workers in the agricultural sector who rely on a stable climate and adequate access to water and other resources are particularly vulnerable to the impacts of climate change, including drought, crop failure, and changes in rainfall patterns. Similarly, workers in the fishing and forestry industries may be exposed to hazardous working conditions, such as working at high altitudes or in extreme weather, exacerbated by climate change. 

Future Expectations on Employment loss rates

According to an international labor organization survey, an increase in heat stress resulting from global warming is projected to lead to global productivity losses equivalent to 80 million total jobs in the year 2030.

Projections based on a 1.5°C rise in global temperature at the end of the century show that by 2030, 2.2% of all working hours will be lost due to warming, equivalent to the loss of 80 million full-time jobs respectively. This equates to a loss of $2.4 trillion to the global economy. 

The sector expected to be worst affected globally is agriculture. Nine hundred forty million people around the world work in the agricultural industry. It is projected to account for 60 percent of global working hours lost due to heat stress by 2030. 

The construction sector will also be severely impacted, with an estimated 19 percent of global working hours lost by the same date. Other sectors, especially at risk, are environmental goods and services, waste collection, emergency, repair work, transport, tourism, sports, and some industrial work. 

The impact will be unequally distributed around the world. The regions losing the most working hours are expected to be southern Asia and western Africa. Approximately 5 percent of working hours are expected to be lost in 2030, corresponding to around 43 million and 9 million jobs, respectively. Here. Archived

Projects that around processing around the globe for adaptation to employment losses due to climate change impact 

Numerous global projects and initiatives are focused on helping workers and communities adapt to the impacts of climate change and mitigate potential employment losses.

The Just Transition is a concept that aims to ensure that workers and communities are not left behind during the transition to a low-carbon economy. The International Trade Union Confederation (ITUC) has been leading the Just Transition Centre, which provides support and advice to unions, employers, and policymakers to plan and implement just transition measures. A Just Transition means greening the economy in a way that is as fair and inclusive as possible to everyone concerned, creating decent work opportunities and leaving no one behind. Here. Archived

Also, The World Bank Group has launched a program to help cities worldwide become more resilient to the impacts of climate change. The program aims to support cities in developing and implementing climate adaptation strategies that create job opportunities, particularly in green sectors. 

Furthermore, the International Labour Organization (ILO) has launched the Green Jobs Initiative to promote environmentally sustainable economic growth and decent work opportunities. The initiative supports countries in developing policies and programs that promote green jobs and training and skills development for workers in green sectors. In addition, The United Nations Development Programme (UNDP) has launched the Blue Economy Initiative, which focuses on creating sustainable employment opportunities in the ocean economy. The initiative aims to support the development of sustainable fisheries, marine renewable energy, and coastal tourism, among other sectors.

The Food and Agriculture Organization of the United Nations (FAO) has been promoting Climate Smart Agriculture (CSA), which aims to increase agricultural productivity while reducing greenhouse gas emissions and enhancing resilience to climate change. The FAO has been providing training and support to farmers and promoting policies that support the adoption of CSA practices. Here. Archived.

The most affected region on employment losses of the globe due to climate change

The impacts of climate change on employment will vary by region and country, depending on various factors, including geography, economic structure, and vulnerability to climate impacts. However, some regions and countries are expected to be more affected than others due to their geography, climate, and economic characteristics. According to a report by the International Labour Organization (ILO), the countries most at risk of job losses due to climate change impacts are those with high exposure to climate hazards, increased reliance on climate-sensitive sectors such as agriculture and tourism, and low levels of economic diversification and human development.

Small Island Developing States (SIDS): These countries are highly vulnerable to climate impacts such as sea-level rise, storm surges, and ocean acidification. SIDS often relies heavily on climate-sensitive sectors such as tourism and fisheries, which are at risk of disruption due to climate change. In addition, many countries in Sub-Saharan Africa are highly exposed to climate hazards such as droughts, floods, and desertification, which can significantly impact agriculture and livelihoods. 

Also, our South Asian region is highly vulnerable to extreme weather events such as floods, cyclones, and heat waves, which can disrupt agriculture and cause significant damage to infrastructure and livelihoods. Read more

Mitigating employment losses due to climate change will require a collective effort and participation from individuals, businesses, governments, and civil society organizations. Individuals can help raise awareness about the impacts of climate change on employment and the need for action. This can include educating others about the risks and opportunities of climate change and advocating for action at the community level. Also, it can support climate action by advocating for policies and measures that reduce greenhouse gas emissions and promote sustainable economic growth.

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-With Inputs from Dinesh Balasri–