paper intends to answer is: To what extent does climate change impact on rural economy including livelihood activities? The research method this paper used is based on theoretical knowledge derived from literature material such as academic articles, books and other sources of academic publications. The paper argues that the slow growth of rural economy, livelihood insecurity and lack of creation of new employment opportunities in rural areas can also be linked to the emergence of climate change in recent times. For instance, drought and floods have destroyed most of the rural livelihood activities and agricultural products, while tourism and fishery businesses have suffered the same fate, thus leading to fewer employment and job losses. The article concludes that, a diversification of measures to respond to climate change impacts on rural economy and needs to be devised if employment opportunities are to be created for rural communities.