Profits and Poverty: The Economics of Forced Labour
- Document number
- 3050
- Date
- 2014
- Title
- Profits and Poverty: The Economics of Forced Labour
- Author/publisher
- International Labour Organisation
- Availability
- View/save PDF version of this document
- Document type(s)
- Guidelines/Recommendations, International Law, Research/Study/Analysis,
- Keywords
- human rights, forced labour, human trafficking, profits, vulnerability
- Summary
- Forced labour in the private economy generates US$ 150 billion in illegal profits per year, about three times more than previously estimated, according to a new report from the International Labour Organization (ILO).
The ILO report, Profits and Poverty: The Economics of Forced Labour, said two thirds of the estimated total of US$ 150 billion, or US$ 99 billion, came from commercial sexual exploitation, while another US$ 51 billion resulted from forced economic exploitation, including domestic work, agriculture and other economic activities.
"This new report takes our understanding of trafficking, forced labour and modern slavery to a new level," said ILO Director-General Guy Ryder. "Forced labour is bad for business and development and especially for its victims. Our new report adds new urgency to our efforts to eradicate this fundamentally evil, but hugely profitable practice as soon as possible."
The report highlights income shocks and poverty as the main economic factors that push individuals into forced labour. Other factors contributing to risk and vulnerability include lack of education, illiteracy, gender and migration.
“While progress is being made in reducing state-imposed forced labour, we must now focus on the socio-economic factors that make people vulnerable to forced labour in the private sector,” said Beate Andrees, head of the ILO’s Special Action Programme to Combat Forced Labour.
Andrees called for a series of measures aimed at reducing vulnerability to forced labour including:- Bolstering social protection floors to prevent poor households from abusive lending or indenture in the event of sudden income shocks;
- Investing in education and skills training to fortify job opportunities for vulnerable workers;
- Promoting a rights-based approach to migration to prevent irregular employment and abuse of migrant workers; and
- Supporting the organization of workers, including in sectors and industries vulnerable to forced labour.