ILO: Forced Labor Generated US$64 Billion in Profits

An International Labour Organization (ILO) report, Profits and Poverty: The Economics of Forced Labour, reveals a US$64 billion increase in illegal profits from forced labor, a 37% surge from 2014. At the heart of this issue lies the exploitation of millions of individuals, with traffickers and criminals now generating close to US$10,000 per victim, a significant increase from a decade ago. 

Forced labor in the informal economy is generating staggering illegal profits, amounting to a shocking US$236 billion annually, according to the ILO report. This surge is fueled by both the growing number of people coerced into forced labor and the greater extraction of profit from exploited victims. The largest share of these illegal profits stems from forced commercial sexual exploitation, accounting for 73% of the total, despite constituting only 27% of victims in forced labor.

The situation is dire globally, with Europe and Central Asia leading in annual illegal profits at US$84 billion, followed by Asia and the Pacific at US$62 billion, the Americas at US$52 billion, Africa at US$20 billion, and the Arab States at US$18 billion.

The ILO report underscores that forced labor not only perpetuates cycles of poverty and exploitation but also undermines human dignity. Gilbert F. Houngbo, Director-General of the ILO, emphasizes the urgency for international action to combat this injustice.

"People in forced labor are subject to multiple forms of coercion, including the deliberate and systematic withholding of wages. The international community must urgently come together to take action to end this injustice, safeguard workers' rights, and uphold the principles of fairness and equality for all," Houngbo stated.

The report also calls for significant investment in enforcement measures to disrupt illegal profit flows and hold perpetrators accountable. Strengthening legal frameworks, providing training for enforcement officials, extending labor inspections into high-risk sectors, and enhancing coordination between labor and criminal law enforcement are recommended actions. However, the report emphasizes that law enforcement alone cannot eradicate forced labor. A comprehensive approach is needed, addressing root causes and prioritizing victim safeguarding.

As the global community grapples with the devastating impact of forced labor, the ILO report serves as a clarion call for concerted efforts to end this egregious violation of human rights and dignity.