A new global study by the World Bank has revealed that natural hazards and extreme heat are responsible for the loss of approximately 90 million full time job equivalents every year worldwide highlighting a major but often overlooked economic impact of climate and disaster related events.
The report Worldwide Job Losses Due to Natural Hazards analyzed data from 132 countries and found that disasters affect not only infrastructure and property but also employment, incomes, and livelihoods.
The study found that extreme heat accounts for nearly 80 million job losses annually making it the largest contributor to employment disruptions. High temperatures reduce workers’ productivity and limit the number of hours they can safely work, especially in outdoor sectors such as agriculture, construction, and manual labor.
Unlike sudden disasters, heat acts gradually but continuously, lowering productivity and earnings over extended.
Floods and Earthquakes Cause Major Employment Losses
Rapid onset disasters such as floods, earthquakes, cyclones, and tsunamis contribute to an average of 9.4 million job losses each year.
Among these hazards, floods and earthquakes have the greatest impact because of their frequency and the widespread economic disruption they cause. Major disasters often destroy businesses, interrupt supply chains, damage infrastructure, and reduce consumer spending, leading to substantial employment setbacks.
The report highlights significant inequalities in disaster impacts.
Low-income countries experience job-loss rates that are:
• More than twice as high as those in upper-middle-income countries.
• Six times higher than those in high-income countries.
Within nations, poorer populations bear a disproportionate burden. Workers in informal sectors, agriculture, and climate sensitive occupations often lack savings, insurance, and social protection, making recovery more difficult after disasters.
For many households, even a temporary disruption can push families deeper into poverty.
Job Loss Does Not Always Mean Unemployment
Researchers note that these losses do not necessarily represent workers becoming unemployed.
Instead, job equivalent losses often mean:
• Reduced working hours.
• Lower productivity.
• Declining incomes.
• Temporary work interruptions.
• Increased reliance on unstable or informal employment.
These effects can have long lasting consequences for families and local economies.
The World Bank argues that stronger disaster resilience measures can reduce employment losses and improve economic stability.
Key strategies include:
Resilient Infrastructure
• Flood protection systems.
• Climate-resilient roads and energy networks.
• Reliable water infrastructure.
Stronger Institutions
• Early warning systems.
• Emergency response planning.
• Disaster financing mechanisms.
Private Sector Investment
• Financing resilient infrastructure projects.
• Supporting businesses and essential services that can continue operating during disasters.
The findings underscore how climate change and natural hazards are becoming major economic challenges, not just environmental ones.
With extreme heat intensifying and disasters becoming more frequent in many regions, protecting jobs and livelihoods is increasingly tied to investments in climate adaptation, disaster preparedness, and resilient development.
The study concludes that reducing disaster risks is essential not only for saving lives and infrastructure but also for safeguarding millions of workers whose incomes and futures are threatened by natural hazards every year.