“This is a dramatic increase that has been fuelled by both a growth in the number of people forced into labour, as well as higher profits generated from the exploitation of victims,” the ILO said in its report on the economics of forced labour.
According to the report, it is estimated that traffickers and criminals are generating close to $10,000 per victim, up from $8,269 (adjusted for inflation) a decade ago.
“Total annual illegal profits from forced labour are highest in Europe and Central Asia ($84 billion), followed by Asia and the Pacific ($62 billion), the Americas ($52 billion), Africa ($20 billion), and the Arab states ($18 billion),” it said.
“When illegal profits are expressed per victim, annual illegal profits are highest in Europe and Central Asia, followed by the Arab States, the Americas, Africa and Asia and the Pacific,” it added.
As per the report, forced commercial sexual exploitation accounts for more than two-thirds (73%) of the total illegal profits, despite accounting for only 27% of the total number of victims in privately imposed labour.After forced commercial sexual exploitation, the sector with the highest annual illegal profits from forced labour is industry, at $35 billion, followed by services ($20.8 billion), agriculture ($5.0 billion), and domestic work ($2.6 billion). “These illegal profits are the wages that rightfully belong in the pockets of workers but instead remain in the hands of their exploiters, as a result of their coercive practices,” it said.
According to ILO, there were 27.6 million people engaged in forced labour on any given day in 2021. This figure translates to 3.5 people for every thousand people in the world. Between 2016 and 2021 the number of people in forced labour increased by 2.7 million.
“People in forced labour are subject to multiple forms of coercion, the deliberate and systematic withholding of wages being amongst the most common,” ILO director-general, Gilbert F. Houngbo said, urging the international community to come together to take action to end this injustice, safeguard workers’ rights, and uphold the principles of fairness and equality for all.
The report stresses the urgent need for investment in enforcement measures to stem illegal profit flows and hold perpetrators accountable. It recommends strengthening legal frameworks, providing training for enforcement officials, extending labour inspection into high-risk sectors, and better coordination between labour and criminal law enforcement.
“Yet forced labour cannot be ended through law enforcement measures alone, enforcement actions must be part of a comprehensive approach that prioritizes addressing root causes and safeguarding victims,” it added.