Forced labour in the private economy generates US$236 billion in illegal profits per year, a new report from the International Labour Organization (ILO) has found.
The total amount of illegal profits from forced labour has risen by US$64 billion (37 per cent) since 2014, 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 report, Profits and Poverty: the economics of forced labour, estimates that traffickers and criminals are generating close to US$10,000 per victim, up from US$8,269 (adjusted for inflation) a decade ago.
Total annual illegal profits from forced labour are highest in Europe and Central Asia (US$84 billion), followed by Asia and the Pacific (US$62 billion), the Americas (US$52 billion), Africa (US$20 billion), and the Arab States (US$18 billion).
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.
Forced commercial sexual exploitation accounts for more than two-thirds (73 per cent) of the total illegal profits, despite accounting for only 27 per cent of the total number of victims in privately imposed labour.
These numbers are explained by the huge difference in per victim profits between forced commercial sexual exploitation and other forms of non-state forced labour exploitation – US$27,252 profits per victim for the former against US$3,687 profits per victim for the latter.
After forced commercial sexual exploitation, the sector with the highest annual illegal profits from forced labour is industry, at US$35 billion, followed by services (US$20.8 billion), agriculture (US$5.0 billion), and domestic work (US$2.6 billion).