Adapting to Climate Change During Displacement: The Role of Livelihood Opportunities and Labor Market Access

The Labor Market Access initiative, a partnership with Refugees International and the Center for Global Development, combines research, advocacy and policy engagement to foster economic inclusion for refugees. We urge countries to recognize the benefits of letting refugees access decent work, and explore a range of regions and thematic areas. As climate-related displacement will uproot millions of people in the decades to come, there is a need for greater research and advocacy around how livelihood opportunities and access to labor markets affect displaced people’s ability to adapt to the impacts of climate change.

This literature review draws on a range of publications to identify gaps and challenges in the space, and is a resource for creating a future agenda for research and advocacy. We are grateful to scholars Sonja Fransen and Manisha Mukherjee for compiling it, and hope it offers insights for other research and advocacy agendas looking at the intersections between livelihoods, displacement and climate change.

Executive Summary

This report explores how livelihood opportunities and access to labor markets affect the ability of forcibly displaced populations—refugees and internally displaced people (IDPs)—to adapt to the impacts of climate change. Previous studies have shown that displaced populations are among the most vulnerable to climate hazards, often residing in fragile environments with limited resources, especially in low- and middle-income countries (LMICs). 

Using a systematic scoping review of 25 peer-reviewed articles, the report finds that sustainable livelihoods play a critical role in enhancing climate resilience. Interventions such as cash transfers, training programs, and regularization policies can help displaced populations build assets and improve their welfare. However, challenges remain, including restricted legal rights for refugees, weak institutional support, and environmental degradation caused or worsened by poorly managed displacement. In various contexts, displaced populations face legal, economic, and social barriers that prevent them from earning income, decreasing their abilities to cope with sudden and slow-onset climate events.

The report presents three key findings. First, livelihood access is central to climate adaptation. Displaced populations with access to stable and diverse income sources are better able to respond to climate-related hazards. Programs like cash transfers, vocational training, and business support can increase both short-term welfare and long-term resilience, especially when they include climate-relevant components such as drought-resistant agriculture or disaster preparedness. Second, institutional support and policy frameworks matter. Legal barriers and weak governance often prevent refugees from accessing formal labor markets, while IDPs may lack infrastructure and services. Policies that enable economic participation—such as regularization programs or inclusive development planning—are crucial for ensuring that livelihood interventions are effective and sustainable. Third, short-term relief must be linked with long-term strategies. Many interventions focus on meeting immediate needs, but this is not enough. Successful approaches integrate short-term assistance (like shelter, food, and cash) with long-term livelihood development, skills training, and environmental protection. This combination helps break cycles of poverty and vulnerability. Lastly, governments and international donors need to prioritize the development of climate-resilient infrastructure that can complement the livelihood initiatives, improve safety, enhance mobility, and facilitate better access to markets and services for refugees and IDPs.

The report also emphasizes the importance of community-led strategies and traditional knowledge in building adaptive capacity. However, key gaps remain in the evidence base. There is limited evidence on the long-term effects of livelihood interventions and their specific contribution to climate resilience. Few studies focus on the experiences of women, adolescents, people with disabilities, or host communities. Geographic coverage is uneven, with little research from Latin America, Small Island Developing States, or conflict-affected areas like Yemen or South Sudan. Additionally, more studies are needed to understand the role of traditional knowledge, policy environments, and the cost-effectiveness of different adaptation strategies.

Overall, the findings emphasize that supporting livelihoods is not only a matter of economic recovery—it is a foundation for climate resilience. Addressing these knowledge and policy gaps is essential to designing inclusive, sustainable, and context-sensitive adaptation efforts for displaced populations.