Extreme heat cuts income of India's outdoor workers by up to 9%

Research by the International Institute for Environment and Development (IIED) shows that extreme heat is eroding the earnings of India’s outdoor workers, with income losses of up to 9% for those in the informal sector. The study, shared exclusively with *The Guardian*, argues that rising temperatures act as a “poverty multiplier,” pushing hundreds of millions of low‑wage laborers further into economic hardship.

The IIED analysis found that heat stress reduces productivity, forces workers to take longer breaks, and in some cases makes outdoor tasks unsafe or impossible. As a result, daily wages fall while the cost of living remains unchanged, deepening the income gap for already vulnerable populations. The research highlights that the informal sector—where most of India’s labor force is employed—lacks the safety nets and adaptive infrastructure that could mitigate these losses.

The findings underscore the urgent need for climate‑resilient policies that address heat exposure for informal workers, such as improved access to shade, cooling facilities, and flexible work schedules. Without such measures, the economic impacts of climate change may continue to widen existing inequalities in India’s workforce.