Research by the International Institute for Environment and Development, shared exclusively with the Guardian, finds extreme heat cut outdoor workers' pay by close to 9% in 2024, and reduced wages by an average 6.6% for highly physical jobs in agriculture, construction and transport. The study estimates outdoor workers lost about £112 ($151) on average in 2024 and that India lost at least £58bn, roughly 2% of GDP, through reduced productivity, workplace closures and long-term illness. Informal-sector workers, who number about 550 million in India, lost an estimated 21.1 working days a year to heat exposure; losses were highest in Rajasthan, where informal workers lost about 8.3% of income. The analysis counts three mechanisms for lost hours: heat-related illness, reduced individual capacity to maintain productivity, and temporary suspension of operations. Researchers and IIED climate finance director Ritu Bharadwaj say heat is acting as a "poverty multiplier," forcing people to keep working through illness, cut food intake, and incur lasting health damage. The report also documents poor access to drinking water, shade, rest areas, sanitation and medical support at worksites, and includes worker testimony of collapsing, repeated illness, lost pay and lack of compensation. The findings point to rising economic strain on the most marginalised workers and signal higher public health and economic costs unless workplace protections and heat-response measures improve.
