A new study by the World Bank has revealed that natural hazards and extreme heat are responsible for the loss of around 90 million full time job equivalents globally every year, highlighting a major but often overlooked economic impact of disasters.
According to the report rapid onset disasters such as floods, earthquakes, cyclones, and tsunamis account for about 9.4 million job losses annually. Floods and earthquakes are identified as the biggest contributors because of their frequency and the widespread disruption they cause to businesses, infrastructure, and local economies.
However largest threat to jobs comes from extreme heat, which is linked to nearly 80 million job losses each year. Rising temperatures reduce the number of hours people can safely work, particularly in outdoor sectors such as agriculture and construction. Rather than causing direct unemployment, heat often results in lower productivity, fewer working hours, and reduced incomes.
The study found that poorer countries and vulnerable populations suffer the most severe impacts. Low income nations experience job loss rates more than twice those of upper middle income countries and six times higher than high income countries. Within countries, poorer households are especially vulnerable because they often depend on climate sensitive jobs and have limited financial protection.
Researchers warn that disaster related job losses can deepen poverty and slow economic recovery. Many workers, particularly those in the informal sector, struggle to rebuild their livelihoods after disasters strike.
To reduce these impacts World Bank recommends a three pronged approach: investing in resilient infrastructure, strengthening disaster preparedness and governance systems, and increasing private sector investment in disaster resilient projects. Examples from countries such as Bangladesh, Rwanda, and Turkiye demonstrate how better planning and financial protection can help communities recover more quickly from climate related shocks.
The report emphasizes that disaster risk management is not only about protecting lives and property but also about safeguarding jobs, incomes, and long term economic development in an increasingly climate affected world.