The Hidden Cost of Forced Labour
August 8, 2024
In March 2024, the International Labour Organisation released a shocking report revealing that forced labour generates an annual profit of US$236 billion worldwide. The study highlighted a disturbing trend: not only has the number of victims risen dramatically over the last decade, but the illegal profits generated from each victim have also increased.
Modern slavery describes situations where coercion, threats or deception are used to exploit victims, undermining or depriving them of their freedom. Forced labour is one of the eight types of serious exploitation defined by the Commonwealth Modern Slavery Act.
No region or sector is untouched by forced labour. Asia and the Pacific are home to over half of all victims, followed by Europe and Central Asia, Africa, the Americas and the Arab States. Alarmingly, nearly 90% of forced labour instances occur in the private economy, imposed by private actors. The industry sector, including mining, manufacturing, construction, and utilities, accounts for the largest share at 37%. Close behind is the services sector at 32%, encompassing wholesale and trade, hospitality, administrative services, education, healthcare, social services, transport, and storage.
While few businesses would knowingly deal with suppliers that use exploitative practices, all organisations share the collective responsibility to guarantee their goods and services are not products of modern slavery. It is critical for companies to screen and scrutinise their operations and supply chains to identify and eliminate exploitive practices. This screening should extend beyond just forced labour to encompass all forms of serious exploitation including servitude, human trafficking, child labour, bonded labour, forced marriage and deceptive recruiting practices.
At Cress, we are committed to helping your business identify, assess and manage the risks of modern slavery within your operations and supply chains. Contact us to talk to one of our experts.