Feeling the Heat
Climate Changes Impact on Worker Financial Security
In 2022, the U.S. experienced 18 separate climate disasters, each costing more than $1 billion in damages and totaling close to $200 billion.
This tally—of the major events only—greatly underestimates the true cost of climate change. Its repercussions put an additional financial burden on those with the fewest resources to manage financial and life stressors.
To better understand the impact of extreme or unusual weather (climate events) on workers living on LMI, Commonwealth conducted an online survey of 1,200 workers in the U.S. with household incomes between $30,000 and $80,000. The report sheds light on the financial impact that workers say they are experiencing due to climate change; how their health, well-being, and living situations have been impacted; and their perceptions of what institutions can—and should—be doing to mitigate these impacts.
Key insights include:
Workers earning LMI are increasingly experiencing extreme or unusual weather. Eighty-three percent of respondents report experiencing extreme weather events such as droughts, floods, hurricanes, tornadoes, and wildfires within the last year.
Workers earning LMI are experiencing significant work disruptions due to climate change. Forty-nine percent of workers earning LMI have personally experienced negative changes in their work due to extreme or unusual weather.
Climate change is increasing worker financial instability. Fifty-four percent of workers who were harmed by extreme or unusual weather reported that they, a member of their family, or someone they knew had their financial situation impacted.
Workers who are Black, Latinx, and/or women with dependents are disproportionately impacted by climate change and face more challenges to their financial well-being. Fifty-eight percent of Black workers and 52% of Latinx workers report having their work impacted by extreme or unusual weather, as compared to 46% of white workers.
Workers are looking to employers to mitigate the financial effects of extreme or unusual weather. Eighty percent of workers are calling for an expanded employer response such as paid time off or flexible schedules.
Workers also believe financial institutions and the government have an important role to play in supporting those impacted by climate change. Twenty-three percent of workers feel that financial institutions should be providing aid while 73% of workers say the government has a role to play.
Infographic: Feeling the Heat
Get a quick look at our findings with this infographic that details key results from the report. This includes data on changes in individual work and those who are most likely to be affected. It also highlights the critical need for employers to support workers affected by extreme or unusual weather.
Webinar: Feeling the Heat
As unusual and extreme weather continues, workers are looking to employers, financial institutions, and the government to support individuals and communities impacted by climate change. Watch the recording of our recent webinar to learn more about climate change, its impact on worker finances, and what institutions and other stakeholders can do to mitigate its effect on workers’ financial well-being.