Europe lost 1.1 million jobs to heat since 1980, mostly in low-wage sectors

Rising temperatures in Europe have reduced employment growth by 0.3% two years later for every 0.7 degree Celsius increase. This means Europe has lost about 1.1 million jobs since 1980 due to heat, mainly affecting low-wage and labor-intensive sectors.

Everyone assumed that rising temperatures would affect outdoor workers or agriculture. It turns out, heat affects all kinds of jobs, especially in small businesses and low-wage sectors. This paper shows that even a small, gradual temperature increase can lead to significant job losses and changes in the labor market composition, pushing out lower-skilled workers.