Adverse weather shocks often impose larger coping costs among women in rural areas. Moreover, gender inequality in rural labour markets is characterised by a high proportion of women in informal employment, especially among those with lower education. I examine the gender-differentiated effect of drought shocks on labour market outcomes in rural South Africa and the role of educational attainment in coping strategies. Using longitudinal individual data matched with geospatial precipitation data, I exploit the temporal and spatial variation in exposure to drought shocks. Results indicate that drought shocks decrease employment among both males and females. Droughts increase formal employment propensity and intensity and reduce informal employment intensity among female workers. While higher access to formal jobs is concentrated only among female workers with some primary, primary, and secondary education, those with lower educational attainment have limited access to this coping strategy in response to drought shocks. Overall, the findings suggest gender-specific policies to improve women’s access to more secure employment in rural areas exposed to weather anomalies.