1. Working outside is very hard for the people here.

2. Working outside is very hard to the people here.

[Are both okay? Can we use 'for' and 'to' in the sentence? In each sentence, what is the part of speech of 'here'? Is 'here' an adverb or an adjective?What does 'here' modify?]

1 is correct; 2 is not.

"Here" is an adverb.