The hidden costs of extreme heat: How climate change impacts worker productivity in the US

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The hidden costs of extreme heat: How climate change impacts worker productivity in the US
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By Alicia Clanton & Brian Delk Anyone who’s had to go to work on a hot summer day knows how exhausting it can be. Brain function slows, commuting is more uncomfortable and, for people who work outdoors, simply staying safe becomes a challenge.

President Joe Biden said extreme heat is costing the US $100 billion a year, citing a report from the Atlantic Council that warned those losses could double by 2030.Anyone who’s had to go to work on a hot summer day knows how exhausting it can be. Brain function slows, commuting is more uncomfortable and, for people who work outdoors, simply staying safe becomes a challenge.

But there are some hard numbers: During a heat wave last summer, President Joe Biden said extreme heat is costing the US $100 billion a year, citing a report from the Atlantic Council that warned those losses could double by 2030. Between 1992 and 2017, heat stress killed more than 800 workers in the US, and injured more than 70,000, according to the Bureau of Labor Statistics.

The greatest heat-related labor losses are born by outdoor industries such as construction, mining and agriculture, according to the Federal Reserve Bank of San Francisco. By 2200, researchers estimate heat-induced labor losses will reduce US capital stock, a measure of accumulated investment, by 5.4%, and consumption by 1.8%. In workplaces with limited AC, including restaurants and warehouses, safety and productivity will also take a hit.

Hot weather also impairs cognition by causing inflammation to brain tissue, weakening the connection of neural networks and disrupting sleep. Though air conditioning can rescue people from these deficits, Aldern says heat exposure at night and on the way to work can still have lingering cognitive effects.

In places where AC is less common, arriving at work doesn’t necessarily offer relief. Across Europe, many businesses, schools and homes lack air conditioning entirely. Even in the US, known for its high levels of AC adoption, more than 40% of schools need new or updated heating, ventilation and air conditioning systems.

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