BANGKOK (ILO News) – One third of the global illegal profits generated from the use of forced labour in the private sector are made in Asia and the Pacific, according to a new report by the International Labour Organization (ILO).

The new study, Profits and Poverty: The Economics of Forced Labour, puts the illegal profits obtained through the use of forced labour in the private economy worldwide at US$150 billion per year. Of this, US$51.8 billion, or 34.5 per cent, was generated in the Asia Pacific region.

The new estimate is based on the 2012 ILO global estimate of forced labour, which found that Asia-Pacific also accounts for 56 per cent of all victims of forced labour globally. Of 20.9 million forced labour victims worldwide, 11.7 million are estimated to be in Asia-Pacific.

“Forced labour is bad for business and development and especially for its victims,” said ILO Director-General Guy Ryder. “This new report takes our understanding of trafficking, forced labour and modern slavery to a new level. [It] adds new urgency to our efforts to eradicate this fundamentally evil, but hugely profitable practice as soon as possible.”

The breakdown of the estimated total profits of US$51.8 billion generated by forced labour in Asia Pacific is as follows:

• $31.7 billion from commercial sexual exploitation. That is equivalent to about 32 per cent of the global total of US$99 billion from commercial sexual exploitation.
• $13.4 billion from construction, manufacturing, mining and utilities. That is equivalent to about 39 per cent of the global total of US$34.5 billion from these sectors.
• $0.4 billion from agriculture, including forestry and fishing. That is equivalent to about 4.5 per cent of the US$8.9 billion global total from these sectors.
• $6.3 billion saved by private households by not paying or underpaying domestic workers held in forced labour. This constitutes about 80 per cent of the global total of US$7.9 billion related to domestic work.

The report highlights poverty and sudden losses of income (income shocks) as the main economic factors that push individuals into forced labour. Other factors that make people more vulnerable to forced labour 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.
Ms 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.
• Supporting the organization of workers, including in sectors and industries vulnerable to forced labour.

These measures are also among the key actions outlined in the text for the proposed Protocol and Recommendation to supplement the current Forced Labour Convention (No. 29), which will be discussed at the 103rd session of the International Labour Conference (ILC), which opens on 28 May 2014 in Geneva. Tripartite delegations from 34 ILO member States in Asia-Pacific are expected to take part in the Conference. If adopted, the Protocol and Recommendation will provide legally binding standards and specific guidance on prevention, protection and compensation measures to eliminate of forced labour.

For further information please contact:

Ms Marja Paavilainen, Chief Technical Adviser
Forced Labour Action in the Asian Region (FLARE project)
ILO Decent Work Technical Support Team for East and South-East Asia and the Pacific
Tel.: +66 92054 6383
Email