Study Reveals $236 Billion in Annual Illicit Earnings Generated by Private Sector

A recent study by the International Labour Organisation (ILO) revealed that the private sector generates $236 billion in unlawful earnings annually.

The report titled “Earnings and Poverty: The Economics of Forced Labour” indicates a 37 per cent increase in illegal earnings from forced labour since 2014. It highlights a surge of $64 billion (37 per cent) in total illegal earnings from forced labour, driven by an escalation in the number of individuals subjected to labour coercion and higher earnings derived from the exploitation of victims.

The study estimates that traffickers and criminals are generating nearly US$10,000 per victim, up from US$8,269 (adjusted for inflation) a decade ago.

The report delineates that annual illegal earnings 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). According to the ILO, when expressed per victim, annual illegal earnings are highest in Europe and Central Asia, followed by the Arab States, the Americas, Africa, Asia and the Pacific.

Forced industrial sexual exploitation constitutes over two-thirds (73 per cent) of total illegal earnings despite accounting for only 27 per cent of the total number of victims of privately imposed labour.

These illegal earnings represent wages that rightfully belong in the pockets of workers but instead remain in the hands of their exploiters due to coercive practices.

ILO Director-General Gilbert Houngbo stressed, “Forced labour perpetuates cycles of poverty and exploitation and strikes at the heart of human dignity. We now know that the situation has only worsened. The international community must urgently come together to take action to end this injustice.”

He highlighted that there were 27.6 million people engaged in forced labour daily in 2021, with an increase of 2.7 million individuals between 2016 and 2021.

Houngbo emphasized the urgent need for investment in enforcement measures to curb illegal profit flows and hold perpetrators accountable. Additionally, he recommended strengthening legal frameworks, providing training for enforcement officers, extending labour inspection into high-risk sectors, and enhancing coordination between labour and criminal law enforcement.

The report underscored that ending forced labour requires a comprehensive approach that prioritizes addressing root causes, safeguarding victims, and law enforcement measures.