Heat makes us unproductive: Economic consequences of the climate crisis

The economy and climate protection are often played off against each other: it is widely assumed that it is not possible to implement measures to protect the climate without causing economic damage in the process. However, a new Allianz study now shows that the uncontrolled progression of the climate crisis is already just as damaging to the economy.

The study focuses in particular on heat waves and their impact on labor productivity, which in turn affects the economy. Calculations based on recent heat waves in the US, Southern Europe, and China indicate that these hot days have already cost 0.6% of annual gross domestic product. According to an Allianz economist, a day of extreme heat (above 32 degrees Celsius) has the same economic impact as half a day of strikes. Spain has suffered the most drastic effects in Europe: 37 “heat days” since May have caused damage amounting to 1% of total economic output.

These calculations refer purely to labor productivity. Other effects, such as on agriculture, are not yet taken into account. Nevertheless, it is already clear that the uncontrolled progression of the climate crisis will have enormous economic consequences—especially in areas where the frequency and intensity of such heat waves will increase in the coming years. As a rough rule of thumb, the more hot days there are, the greater the economic damage.

We were also interested in the following topics:

• Career starters: Thinking about promotion, career, and top salaries in your first job? Many career starters approach their working life in a completely different way—and tend to value fewer overtime hours, less stress, and a “work-boredom balance,” according to Zeit (€).

• Government support: The unemployment rate among 15- to 24-year-olds is falling: Compared to 11.9% in 2007, youth unemployment is now only 6.0% 15 years later. Nevertheless, an increasing proportion of young people are dependent on government assistance, writes ZDF.

• Employed persons in Germany: The number of employed persons in Germany is currently rising only slowly and is below the EU average. Details and exact figures are available from the RND.

• Collective bargaining: In collective bargaining, employees, especially trade unions, usually engage in intensive public relations work. Andreas Bachmeier has considered for politik&kommunikation how employers can also draw more attention to their concerns.

• Home office regulations: Since home office working has become widespread as a result of the Covid pandemic, corresponding regulations have become firmly established: in the information industry, for example, employees in around 80% of companies work remotely at least one day a week. In addition, companies that wanted to “bring back” their employees to the office often expressed regret about this decision: many managers now regret this decision, writes t3n.

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