Forced labor generates $235Bln in illegal profits annually – ILO

MOSCOW, March 19 (Sputnik) – Forced labor generates $235 billion worth illegal profits in the private economy annually, with Europe and Central Asia benefiting the most, the International Labor Organization (ILO) said in a fresh report on Tuesday.

“Total illegal profits generated from forced labour amount to an estimated US$236 billion annually … Total illegal gains from forced labour appear to have risen dramatically over the last decade. A simple comparison with the previous estimates of illegal profits published in 2014 (adjusted for inflation) indicates a US$64 billion rise in illegal profits from forced labour since that time,” the ILO said in a report titled “Profits and Poverty: The economics of forced labour.”

The increase was powered by a growth in the number of people forced into illegal labor and higher profits generated from exploitation, the report read. If in 2014 the annual profit per victim was estimated at $8,269 adjusted for inflation, in 2024 the figure jumped to $9,995, marking a 21% hike. Meanwhile, the total number of people subject to forced labor increased by 2.7 million from 2016-2021 to 27.6 million.

The most profitable area in forced labor, according to the document, is commercial sexual exploitation. Despite accounting for just 27% of all victims of forced labor, it garners 73% of total illegal profits annually, which is $173 billion out of $236 billion. The difference is due to the significant margin in profit per victim between this type of forced labor and others: $27,252 against $3,687.

The highest illegal profits were registered in Europe and Central Asia — $84.2 billion, followed by Asia and the Pacific — $62.4 billion, the Americas — $52.1 billion, Africa — $19.8 billion, and the Arab States — $18 billion.