Key facts
- Extreme heatwaves are causing unbearable conditions in European workplaces, impacting productivity.
- Economists warn that rising temperatures could lead to substantial productivity losses and disrupt labor across construction, agriculture, manufacturing, retail, and hospitality sectors.
- Productivity losses intensify sharply above a 30C threshold, while energy costs for cooling rise.
- France, Spain, and Italy are identified as the most exposed European economies to the economic costs of heat stress.
- While the UK has no maximum legal working temperature, France, Germany, and Spain have implemented various regulations to mitigate heat-related risks for workers.
Record-breaking heatwaves across the UK and western Europe are increasingly impacting worker productivity and posing a significant threat to the continent's economic growth. Economists warn that without adaptation, rising temperatures could lead to substantial productivity losses and disrupt labor across multiple sectors, potentially denting GDP.
Robert Marks, lead climate economist at Oxford Economics, stated that temperatures in the high 30s and low 40s would likely cause significant productivity losses and disrupt labor in sectors unable to provide protected work environments, such as construction, agriculture, manufacturing, retail, and hospitality. These sectors represent a substantial portion of economic activity in the UK and western Europe. A four-day heatwave could reduce quarterly labor productivity growth by 1.5 percentage points in the UK and up to two percentage points in the rest of western Europe.
Research by Allianz found extreme heat to be a structural economic risk, with France, Spain, and Italy being the most exposed due to productivity losses intensifying above a 30C threshold and rising cooling costs. Under a stress scenario, France could lose $240bn in economic output between 2026 and 2030, followed by Italy ($147bn) and Spain ($120bn), representing a cumulative loss of up to 7% of GDP.
Katharina Utermöhl, co-author of the Allianz study, emphasized that extreme heat is a permanent economic policy challenge, not just a summer problem, and that countries need to adapt. The heatwave has also highlighted inequalities in flexible working arrangements. While many office workers can work from home, essential workers in sectors like healthcare, baking, transport, and retail often cannot.
Workplace regulations vary across Europe. The UK has no maximum legal working temperature, relying on Health and Safety Executive guidance for employers to maintain a "reasonable" temperature. France has introduced regulations requiring employers to adjust working arrangements and provide water. German employers must take measures to cool workplaces above 30C, with stricter rules at 35C. Spain has gone further, allowing workers up to four days of paid leave if they cannot reach their workplace due to heat.
Some UK refuse collectors have started their rounds as early as 4 am to avoid the heat. In Italy, construction workers and delivery riders were ordered not to work between 12:30 pm and 4 pm in the Lazio region, though reports suggest delivery riders largely ignored the order. Independent brewery Elusive Brewing has halted production due to unsafe temperatures above 40 degrees Celsius in the brewery.