There are additional dimensions of economic losses that are of a more diffuse nature. In particular, climate change is also expected to negatively affect labour supply, particularly in temperature exposed industries , due to increases in the number of extreme hot days . Low-income countries have on average a large share of workers in such industries and will thus be especially hard hit. Aside from labour supply, a number of studies also document negative impacts to manufacturing productivity . These findings provide a channel to explain macroeconomic consequences of climate change . However, there are also non-economic costs in that extreme heat will cause increased discomfort to workers, such as psychological stress, disease and in extreme cases, death among the workforce in developing economies, as well as tropical and sub- tropical countries .
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report