Explained: How Extreme Heat Is Costing South Asia 31 Million Jobs Every Year

When we think about extreme heat, we usually think about discomfort, heatwaves and record-breaking temperatures.

The World Bank says we should also be thinking about jobs, wages and economic growth. According to a new report, extreme heat is already costing South Asia the equivalent of 31 million full-time jobs every year. Without stronger adaptation measures, the region's economy could be nearly 7% smaller by 2050, making it the worst-hit developing region in the world.

Here's what the report says.

How is extreme heat costing millions of jobs?

The report says heat reduces the number of hours people can safely work, particularly in outdoor and physically demanding occupations such as construction, agriculture, manufacturing and transport. As temperatures rise, workers become less productive, businesses lose output and employers create fewer new jobs. Taken together, those losses already amount to the equivalent of 31 million full-time jobs every year across South Asia.

Why is South Asia especially vulnerable?

South Asia combines three major risk factors: rising temperatures, densely populated cities and a large workforce employed in heat-exposed sectors. The region is also expected to add around 280 million working-age people by 2050, just as extreme heat is making it harder to create productive employment.

What does this mean for India's economy?

For India, the findings come at a critical time. The country is pushing ambitious goals under Viksit Bharat 2047, expanding manufacturing through Make in India and aiming to generate millions of jobs. The World Bank warns that unchecked heat could become a structural constraint on productivity, urban livability and long-term economic growth, potentially slowing those ambitions.

Could extreme heat also create new jobs?

Yes. The report says adapting to rising temperatures will also create economic opportunities. India is preparing the AHEAD (Alleviating Heat Stress by Enhancing Production of Affordable Cooling Devices) programme with World Bank support, which could boost domestic manufacturing of affordable cooling technologies and create nearly 3.7 million jobs by 2040. Demand for cooling solutions, climate-resilient construction and heat-resilient infrastructure is also expected to grow.

Can cities still avoid the worst impact?

The World Bank believes they can—but only if action begins now. Nearly 70% of the urban infrastructure India will need by mid-century has not yet been built, giving policymakers a rare opportunity to design cities that are better equipped to cope with rising temperatures. The report calls for greater investment in heat-resilient infrastructure, stronger Heat Action Plans, early warning systems, sustainable cooling technologies and better protection for vulnerable workers.

Why does this matter?

The report delivers a simple but powerful message: Extreme heat is no longer just an environmental problem. It's becoming an economic one. The challenge is no longer limited to surviving hotter summers. It is about protecting jobs, sustaining productivity and ensuring that rising temperatures do not derail South Asia's long-term growth ambitions.

(With inputs from ANI)