Effects of temperature on job insecurity: Evidence from Australia

Abstract

This study examines the relationship between temperature fluctuations and job insecurity in Australia, a country increasingly experiencing the impacts of climate change. Utilising data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey combined with satellite-based temperature data, we assess the influence of temperature deviations on perceptions of job insecurity. Our analysis reveals that higher temperatures are significantly associated with increased job insecurity. This effect is more pronounced in specific states such as New South Wales, Queensland, and Western Australia. Mechanism analysis identifies mental health deterioration and energy poverty as key mediators in this relationship, explaining how environmental stressors translate into employment-related anxieties. Our study’s findings highlight the need for interventions that address both the direct and indirect impacts of climate change on the labour market.