strategic insights for NSW workforce impacts and adaptation

Key messages

• Climate change affects more than ecosystems, homes and infrastructure. It is also changing the conditions in which people work.
• Extreme heat, poor air quality and more frequent extreme weather can affect workers’ health, safety and wellbeing.
• Outdoor workers are the most directly exposed to the risks, however some indoor workers and those working in locations which record higher temperatures may also be heavily impacted.
• Age, gender, health, culture, and personal and social circumstances may also increase a workers’ vulnerability to the impacts.
• Climate-related hazards can result in more workplace injuries, incidents, disruption, lower productivity and absenteeism, which can lead to knock-on impacts to industry and communities.
• Practical strategies such as adjusting work schedules, enhancing rest and hydration, and providing appropriate clothing, equipment and training can help improve working conditions and protect workers.
• Workplace design adaptation strategies including improving insulation and ventilation, increasing tree canopy and delivering reliable backup power can decrease risk of climate-related hazards and provide long term benefits.
• Creating a climate-resilient workforce delivers broader social, economic, and environmental benefits.

The Workers on the frontline of climate change report is an analysis of climate-related hazards in NSW and their direct and secondary impacts on the health and wellbeing of workers now and into the future.

The review draws on existing research and incorporates modelled estimates of workforce exposed to climate change risks now and over the next 40 years. It provides insight into current and emerging risks, and how the ongoing impacts of climate change will continue to increase workplace hazards and contribute to wider social and economic repercussions.

The report analyses how risk is distributed across different groups of workers, considering the nature, location and industry of work. It also examines how personal, socioeconomic and cultural circumstances may heighten vulnerability for some workers.

A range of recommendations and strategies to mitigate risks have been identified to reduce risk, improve working conditions, and help workplaces adapt to climate change.

What are the risks?

Heat is one of the most notable and dangerous climate-related hazards for workers. High temperatures, heatwaves and humidity can make it harder for workers to maintain a safe core body temperature while working. This can lead to multiple health issues such as heat rash, exhaustion, dizziness and fainting, mental illness, exacerbation of underlying medical conditions, and potentially life-threatening heat stroke.

Worsening air quality due to bushfire and drought can have immediate and long-term effects on workers. Respiratory irritation and reduced intake of oxygen can result in worsening asthma and allergies, and prolonged exposure to these conditions may lead to more serious and ongoing illness.

Climate change is expected to increase the frequency and severity of extreme weather events such as storms, floods, and bushfires, which can expose workers to physical injury, electrical hazards, contamination, and disrupt critical infrastructure.

The transition to a low-carbon economy and society, while essential, can create transition risks by introducing new occupational hazards, unfamiliar materials, and changes to work environments.

Psychological effects induced by the impacts of climate change, such as heat stress, disaster-related trauma, eco-anxiety and economic and social stress affect mental wellbeing and can be compounded, amplifying interpersonal conflict and wellbeing decline.

Who is at risk?

All workers in NSW will feel some effects of climate change, however vulnerability to the impacts varies considerably across groups.

Outdoor workers, including those in construction, agriculture, forestry, mining, transport and emergency services, are directly exposed to hazards such as heat and air pollution and are therefore at greater risk. According to the research, in NSW, about 1 in 7 workers are currently employed in occupations that require spending time outdoors, including in agriculture, construction, emergency services and policing.

While indoor workers are generally protected from the elements, those working in factories, warehouses, and kitchens that generate heat and are poorly ventilated or lack air conditioning may still be exposed to high temperatures and poor air quality.

Location can influence the level of risk. The Sydney and Parramatta CBDs have the highest number of climate exposed jobs, however, regional NSW workforce faces greater impacts due to a higher proportion of outdoor workers. More than 1 in every 5 positions in the Murray, Capital Region, New England and Northwest, Far West and Orana and the Riverina are climate exposed.

Personal, social and cultural factors may also affect workers’ vulnerability to climate impacts. Indigenous workers are particularly vulnerable to climate impacts with Indigenous workers disproportionately located in regional and remote areas, in lower quality housing and having higher rates of health conditions. Experiences of ‘solastalgia’ (grief caused by negative environmental change) may be particularly significant given Indigenous people’s deep and enduring connection to Country.

Demographic and social vulnerability factors affecting climate risk 

Source: Workers on the frontline of climate change: Strategic insights for NSW workforce impacts and adaptation

How are workplaces being impacted?

Hot weather has been found to significantly increase the risk of workplace incidents and injuries, regardless of whether work is performed indoors or outdoors (Park et al 2021). As heatwaves are projected to become more frequent, intense, and longer, incidents due to heat-induced fatigue, impaired cognition, sweaty palms or dizziness may increase, contributing to less safe work environments. It is also important to recognise that for every reported incident, there may be multiple near misses, many of which go unreported.

Productivity losses can occur when workers slow their pace to adjust, take more frequent breaks, or are unable to work at full capacity due to heat-related illness. However, it is important to recognise that some of these responses, such as taking additional breaks, are important measures for protecting worker health and safety. As a result, a degree of productivity loss may be necessary to reduce the risk of heat- or other climate-related harm.

Extreme weather events can also create hazardous conditions, affecting safe access to workplaces, or may lead to workplace closures of varying duration.

In addition to direct workplace impacts, climate change may cause broader economic and operational disruptions, including power outages, infrastructure failures, and both local and global supply chain interruptions.

Arsht-Rockefeller Hot Cities report for Sydney estimated current heat exposure already costs Sydney’s economy about $432 million per year in lost productivity with the cost expected to double to nearly $974 million per year in 2050 in the absence of adaptation measures (Atlantic Council 2022).

What can be done?

If current employment growth trends continue, the construction industry is expected to have more than 500,000 climate-exposed jobs by 2064 - more than all the other sectors examined in the report combined.

Planning and adapting workplaces and work practices to a changing climate is essential to protect workers and maintain productivity. Strategies have been designed to reduce the impacts of extreme heat, poor air quality and other climate hazards on workers. These actions should be taken in an inclusive and equitable manner to ensure measures do not create further disruption or imbalance for workers in a personal or professional capacity.

Adjusting work hours and schedules 

While traditionally focused on heat, this approach is increasingly relevant for managing risks from a broader range of environmental stressors, including poor air quality, storms, and extreme weather variability.

Enhancing rest breaks and hydration 

When work hours cannot be shifted away from peak heat periods, these strategies can reduce the risk of heat-related illness and improve overall wellbeing.

Clothing, protective equipment and cooling gear 

Innovations in apparel and equipment can improve airflow, minimise sun exposure and heat absorption, and protect workers against air pollution, chemicals and insect bites.

Training, monitoring and early warning systems 

From recognising the signs of heat stress and correctly using personal protective equipment (PPE), to real-time environmental and worker monitoring and alerts, education and awareness play an important role in reducing risk and improving safety outcomes.

Workplace design, infrastructure and planning improvements

Where possible, avoiding heat-absorbing building materials and improving insulation and ventilation can significantly enhance worker comfort in the short term. In the longer term, urban design and planning decisions can shape daily work and commute patterns and work-life balance. These strategies are designed to directly improve worker health and wellbeing, and can have additional benefits such as improving work satisfaction, creating new jobs and encouraging proactive safety practices.

Supporting future changes

Protecting workers from the impacts of climate change can also drive broader positive change. In addition to improving worker health and safety, these measures can help reduce inequalities, strengthen community resilience, and deliver greater social, economic, and environmental gains.

Acknowledgement

The Workers on the frontline of climate change report was developed as part of the NSW Climate Change Adaptation Action Plan 2025-2029. Expert advice and reviews were provided by SafeWork NSW, NSW Department of Primary Industries and Regional Development and researchers at La Trobe University.