Image symbolizing the impact of rising temperatures on the workplace.

Extreme Heat and Your Job: How Rising Temperatures Are Reshaping the Workplace

Soraya Malik in Business & Economy December 2025 • 4 min read.

"A new study reveals the surprising impact of heat on labor force dynamics in Australia, offering insights for workers and employers adapting to climate change."

The world is getting hotter, and it's not just uncomfortable—it's affecting our jobs. A groundbreaking study from the Centre for Health Economics, Monash Business School, sheds light on how extreme heat is changing the labor force in Australia. The research, led by Andrew Ireland, David Johnston, and Rachel Knott, digs into the real-world impacts of rising temperatures on workers and businesses.

Using a detailed analysis of daily work patterns from 2001 to 2019, the study uncovers some surprising trends. It's not just outdoor workers who are feeling the heat; entire industries are seeing changes in attendance, productivity, and overall dynamics. This isn't just about Australia, either. As global temperatures continue to climb, these findings offer valuable lessons for anyone navigating the future of work.

This article breaks down the key takeaways from the study, highlighting what this means for your job, your employer, and the broader economy. Whether you're managing a team, looking for ways to stay productive in the heat, or just curious about the changing world of work, this is essential reading.

The Heat is On: How Extreme Temperatures Impact Work

Image symbolizing the impact of rising temperatures on the workplace.

The research shows a clear connection between high temperatures and reduced work attendance. When temperatures soar above 38°C (100°F), workers are more likely to call in sick or simply not show up. The study found that extreme temperatures increase absenteeism by 5%. And this isn't just a matter of personal discomfort. Adverse heat effects during the work commute and outdoor work hours are key mechanisms.

One of the most striking findings is that the impact of heat extends beyond outdoor jobs. While it's no surprise that construction workers or farmers are affected, the study reveals that even indoor industries like Financial and Insurance Services experience significant disruptions. In fact, absenteeism in the finance sector jumps by 15% when temperatures exceed 38°C.

Cooler Regions Hit Hard: Areas that don't typically experience extreme heat see the biggest impact. This suggests that workers and infrastructure in these regions are less prepared for high temperatures.
Recent Years Show Increased Impact: Despite increasing awareness of climate change, the most recent years (2013-2019) show the largest effects. This indicates that adaptation is a complex, ongoing challenge.
Not Just Outdoor Workers: While outdoor workers are undoubtedly vulnerable, the study highlights that indoor industries are also significantly affected.

The study also looked at whether workers make up for lost time during cooler periods. The results were clear: workers don't compensate for missed hours in the weeks following extreme heat. This can lead to real economic losses as productivity declines. It shows that focusing on long-term solutions and support systems is vital for maintaining a stable workforce.

Adapting to the Heat: What Can Be Done?

The findings suggest a need for targeted strategies to protect workers and maintain economic productivity in a warming world. From flexible work arrangements and improved cooling infrastructure to public transport upgrades and policy adjustments, the steps we take now will decide how well we adapt to the impacts of a hotter future. By focusing on solutions that support both workers and businesses, we can build more climate-resilient communities and strengthen the economy in the face of climate change.

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Everything You Need To Know

How does extreme heat, specifically temperatures above 38°C (100°F), affect work attendance based on the Centre for Health Economics, Monash Business School study?

The Centre for Health Economics, Monash Business School study reveals that when temperatures exceed 38°C (100°F), there's a notable increase in absenteeism. The study found a 5% increase in workers calling in sick or not showing up to work at all when temperatures reached this level. This impact extends beyond just personal discomfort, highlighting the adverse effects of heat during the commute and work hours.

The study highlights that both outdoor and indoor workers are affected. In what specific ways does extreme heat impact productivity and attendance in indoor industries like Financial and Insurance Services?

Even indoor industries like Financial and Insurance Services aren't immune to the effects of extreme heat. Absenteeism in the finance sector jumps by 15% when temperatures exceed 38°C. This suggests that factors beyond just the physical demands of outdoor work, such as discomfort, heat-related stress, or disruptions in commuting, can significantly impact indoor workers' attendance and productivity.

What did the study discover about how regions that don't often experience extreme heat are affected, and what does this suggest about preparedness and infrastructure?

The study found that regions unaccustomed to extreme heat experience the biggest impact on work attendance. This indicates that workers and infrastructure in these regions are less prepared for high temperatures. This lack of preparedness can include inadequate cooling systems in workplaces and homes, as well as a general lack of awareness among workers about how to protect themselves from heat-related illnesses.

Does the research indicate that workers make up for lost time during cooler periods following episodes of extreme heat? If not, what are the economic implications?

The study shows that workers don't compensate for missed hours in the weeks following extreme heat. This has significant economic implications, leading to real economic losses as overall productivity declines. This reinforces the importance of focusing on long-term solutions and support systems to maintain a stable and productive workforce.

What strategies are suggested to help workers and businesses adapt to the effects of extreme heat, and how can these contribute to building more climate-resilient communities?

The study findings suggest a need for targeted strategies, including flexible work arrangements, improved cooling infrastructure, public transport upgrades, and policy adjustments. By focusing on solutions that support both workers and businesses, we can build more climate-resilient communities and strengthen the economy in the face of climate change. These adaptations can also reduce the long-term economic impacts of heat-related productivity losses and healthcare costs.