Forced labor risk assessment

Worker voice and labor rights

The level of commitment to a range of labor rights and worker voice, established by surveys. It includes the ability of workers to join unions and participate in collective bargaining, provide feedback to management or owners, raise concerns or grievances, request improvement to conditions, and receive fair remedy when there have been worker rights issues. Labor exploitation thrives more easily in environments that do not protect worker rights and enable worker voice.

Labor cost resilience

The labor cost resilience, calculated using the average labor cost per employee. A low labor cost per employee correlates with low-skilled, labor-intensive activities, in which workers are more vulnerable to severe labor exploitation and forced labor because they have few or no alternative ways to make a living.

Workforce turnover

The workforce turnover, calculated using the voluntary plus involuntary employee turnover percentage. There are strong links between a high workforce turnover and poor working conditions, including repetitive tasks, lack of autonomy, and precarious contractual arrangements. High turnover can also increase the workload for remaining employees.

Human rights policies and management

The extent of human rights policies, practices, and governance established via survey. Forced labor is more difficult to identify and mitigate against in contexts without specific human rights policies. Human rights policies help to drive practices like human rights risk assessments and remediation.

Remuneration inequality

The renumeration inequality, calculated using the ratio of CEO pay to median employee pay. A high CEO-to-median employee pay ratio can indicate organizational inequalities, a culture that does not promote fair pay, or where workers lack negotiating power.

Knowledge intensity

Knowledge intensity, calculated using the average spend on research and development per employee. Organizations with high levels of research and development investment per employee tend to attract highly skilled workers. These organizations pay higher wages, generating higher-value products or services, margins, and a competitive advantage through innovation, reducing the risk of labor exploitation.

Balance sheet pressure

Balance sheet pressure, calculated using the ratio of debt to equity. Organizations with highly leveraged, weak balance sheets are more likely to prioritize short-term operational performance over longer-term commitments to ethical governance. Poor financial health creates an environment that can impact working conditions and raise the risk of exploitation.

Cost resilience

Cost resilience, calculated using the average sales per employee.  An organization in which employees generate a high level of income or revenue would result in less pressure on the costs of employees and the associated risk of labor exploitation.

Procurement and contract management

The quality of approaches to sourcing and managing the supplier base established by survey. A robust policy for responsible sourcing and awarding contracts increases supply chain transparency and the ability to mitigate against forced labor risks when used with an ethical approach to supplier management.

Supply chain concentration

The concentration of a supply chain, calculated using the average sales per supplier. As the level of sales per supplier decreases, the complexity of the supply chain increases, making it more challenging to audit and monitor for labor risks. Forced labor is better concealed in complex supply chains.

Migrant worker rights [30]

The extent to which migrant workers are deprived of work-related rights, such as being unable to change employers or communicate with people outside job sites, within industry. Migrant workers are more likely to be deprived of work-related rights than non-migrant workers, as in many countries they cannot legally join a union. Migrant workers are more likely to have informal working arrangements and insecure contracts, making them more vulnerable to exploitation.

Child labor levels [32] [33] [34] [35] [36] [37] [38] [39]

The level of child labor within industry. There are strong correlations between child labor and forced labor. Both forms of exploitation thrive where there are high levels of informality in an industry, which creates challenges for government inspection and business due diligence measures. In addition, the "worst forms of child labor," as defined by the International Labour Organization, include slavery, child trafficking, and forced labor.

Human rights policies on forced labor [40]

The extent to which forced labor is addressed in human rights policies within industry. Forced labor can more easily take root in contexts without specific policies to address these risks within human rights commitments. These policies help to drive practices like human rights risk assessments and remediation processes.

Labor policies on forced labor [40]

The extent to which forced labor is addressed in labor rights policies within industry. Forced labor can more easily take root in contexts without specific policies not to use or benefit from forced labor. These policies help to drive practices like labor rights risk assessments and living wage commitments.

Wage levels [41]

Average wages within industry. Sectors characterized by low-paid labor have higher levels of forced labor. Workers earning wages at or below the poverty line are more vulnerable to severe labor exploitation and forced labor because they have few or no alternative ways to make a living.

Hazardous conditions (fatal) [41]

The level of fatal occupational injuries within industry. Forced labor victims are likely to endure working conditions that workers would not freely accept, including conditions that are hazardous and cause death. For example, they may work in dangerous environments that expose them to tunnel collapses, heavy loads, explosions, and chemical substances.

Hazardous conditions (non-fatal) [41]

The level of non-fatal occupational injuries within industry. Forced labor victims are likely to endure working conditions that workers would not freely accept, including conditions that are hazardous and cause serious illness or injury. For example, they may lack adequate protective gear, use dangerous equipment, or work long hours in extreme heat.

Air pollutants [42]

The level of air pollution within industry. Polluting activities are often highly reliant on intense, manual labor in which workers are subjected to forms of exploitation that are supposedly cheaper than upgrading to new technologies. Often, the same remoteness and isolation that protects a work site from environmental monitoring and enforcement will also prevent labor inspections. In addition, air pollution also leads to poor health, potentially reducing access to livelihoods, and increases migration, raising risks of trafficking during unsafe migration journeys.

Carbon emissions [43]

The share of global greenhouse gas emissions within industry. Enslaved labor is routinely utilized by some of the most ecologically toxic industries on earth, like brick making, clear-cut deforestation, precious-woods logging, and strip mining. Criminal slaveholders who do not adhere to environmental laws and treaties are a leading cause of the natural world’s destruction, and modern slavery, including forced labor, is one of the world’s largest greenhouse gas producers.

Tree loss [26]

The extent of tree cover loss within industry. There is a strong correlation between forced labor and tree cover loss in multiple countries, especially within illegal deforestation and land clearing. This is a two-way relationship. When biological diversity decreases due to tree cover loss, vulnerability to slavery increases. In turn, this increases forced labor's contributions to tree cover and biodiversity loss. An estimated 40% of deforestation is accomplished with workers subjected to forced labor.

Water footprint [44]

The amount of water used within industry. Industries with large water footprints are those that use a large volume of freshwater to produce goods and services. A large water footprint may mean water stress and, therefore, increased poverty and vulnerability for local communities that depend on freshwater supply for their livelihoods. Lack of potable water is an indicator of indecent living conditions and is an indirect push factor into forced labor.

Water pollutants [42]

The level of water pollution within industry. Illicit operations are more likely to subject workers to forced labor and also to hide their environmental crimes, including the dumping of hazardous wastes into water sources. There are increased levels of risk for women of human trafficking as they walk further to obtain clean water.

Migrant worker recruitment costs [30]

The level of recruitment fees paid by migrant workers within industry. A major cause of forced labor in global supply chains is the charging of recruitment fees to migrant workers. To pay large fees to recruitment agents, migrants often take out high-interest loans. This debt burden exacerbates their vulnerability and can lead to debt bondage and forced labor. The practice of charging migrant workers for recruitment is prohibited in many countries yet remains common. Women migrants tend to pay more than men, may feel more dependent on the recruitment agent for protection, making them more vulnerable to abuse, and may have had less control during negotiations over work contracts where these were negotiated by male relatives.

Informal employment [41]

The level of informal employment rate within industry. Where economic activity is beyond government regulation and protection, there are few legal mechanisms protecting rights to decent work. Workers in the informal economy are unlikely to have contracts and access to social protections. They are more likely to experience unsafe work conditions, forced overtime, low wages, precarious employment, and labor exploitation and abuse. In most countries, women make up a higher percentage of the informal economy.

Gender equality policies [40]

The extent to which gender equality is addressed in human rights policies within industry. Modern slavery, including forced labor, can more easily take root in contexts without specific policies on gender equality in human rights commitments. These policies help to drive practices like anti-harassment action and gender-sensitive health and safety measures.

Education levels [41]

The level of education within industry. Poor access to education increases vulnerability to forced labor, and experiencing forced labor is linked to poor educational outcomes. Individuals with lower levels of formal education have fewer formal and skilled employment prospects and are more at risk of exploitation. In many countries, girls are less likely to receive quality education and more likely to drop out of school. This makes them more vulnerable to trafficking, including as women migrants seeking low-skilled work abroad.

Gender pay gap [41]

The gap between male and female pay within industry. The discrimination that drives a pay gap also drives the exploitation of women workers. Unequal economic access can impact a woman’s level of control over their job and make them less able to mitigate emergency situations and economic shocks, creating vulnerability to exploitation.

Temporary and seasonal workforce [45]

The share of the workforce with involuntary temporary contracts within industry. There is widespread documentation in many countries of disproportionate exploitation within temporary and seasonal work. The lack of regulations and protections for migrant, temporary, and seasonal workers' rights often results in low wages, poor working conditions, and employee abuse. Precariously employed workers often lack access to trade unions and employer associations.

Foreign migrant workers [41]

The level of foreign migrant workers within industry. Migrant workers are more likely to be exploited through forced labor than non-migrant workers due to insecure immigration status, lack of access to public services, and language barriers. They are less likely to raise grievances with their employers or the authorities. Immigration systems based on work sponsorship can create dependencies on employer sponsors, potentially placing migrant workers in situations of coercive control.

Workforce skills level [46]

The level of skill in the workforce within industry. Low-skilled workers, including migrant workers, are prone to abuse by recruitment agencies and employers. Employers of higher-skilled migrant workers normally cover recruitment costs, whereas lower-skilled migrant workers often pay agencies high fees. Low-skill positions are more likely to be characterized by flexibility, insecurity, precarious employment, and long working hours with low pay. The informal economy, where workers are not protected under labor legislation, is characterized by low levels of skill.

Levels of purely domestic output [47]

The proportion of total output that is for purely domestic use within industry. Sectors that are less exposed to global value chains, with more value-add being consumed domestically, are more isolated from international leverage. Increasingly, there is international pressure and scrutiny in the areas of human rights standards, forced labor, and decent work.

R&D intensity [48]

The intensity of research and development expenditure within industry. Sectors with low research and development intensity tend to pay lower wages, not attract highly skilled workers, and not focus on generating higher-value products or services, margins, and competitive advantage through innovation. These factors create a higher-risk environment for labor exploitation to take root.

Labor productivity [49]

The level of labor productivity within industry. Sectors with low gross value added per hour worked are more likely to seek to reduce labor costs through illegal wage deductions, lack of overtime pay, wages below the legal minimum, or non-provision of benefits, which create a higher-risk environment for exploitation.

Low labor cost [41]

The average labor cost per employee within industry. Industries with a low labor cost per employee are more likely to have low-skilled, labor-intensive work. Workers may lack other employment opportunities, giving them less power to negotiate for decent work conditions. Low labor costs often go hand in hand with insecure employment practices, further raising the level of vulnerability to exploitation.

Levels of regulation [50] [51] [52] [53] [54] [55] [56] [57]

The level of regulation within industry. Forced labor occurs most frequently in unregulated, underregulated, or hard-to-regulate sectors. Work that occurs outside of appropriate regulatory protection is more likely to have deceptive recruitment, degrading conditions, limited access to social protection, health and safety violations, abuse of worker vulnerability, or coercive practices.

Excessive overtime [41]

The level of excessive overtime within industry. Frequent use of excessive overtime is one of the most common forced labor indicators. Compulsory overtime above the legal limits can constitute forced labor when combined with the threat of a penalty. Excessive overtime indicates worker vulnerability or coercive practices, both of which raise the risk of forced labor.

Violence and torture

16.2 End abuse, exploitation, trafficking, and all forms of violence against and torture of children

The level of violence within countries. Modern slavery, including forced labor, takes root in contexts with high levels of sexual and criminal violence and high levels of torture and extrajudicial killings.

Public sector corruption [1]

16.5 Substantially reduce corruption and bribery in all their forms

The level of public sector corruption within countries. Forced labor is closely linked to illegal activity and corruption. Traffickers corrupt public officials and pay bribes. High levels of corruption among public officials correlate with failures in the overall implementation of anti-slavery policies.

Anti-slavery legislation

16.3 Promote the rule of law at the national and international levels and ensure equal access to justice for all

The extent of countries' domestic legislation against human exploitation. Countries without strong laws prohibiting slavery, servitude, forced labor, and human trafficking cannot effectively prevent people from enslaving others or provide sanctions in the instance of violations.

Organized crime [2]

16.4 By 2030, significantly reduce illicit financial and arms flows, strengthen the recovery and return of stolen assets, and combat all forms of organized crime

The level of organized crime within countries. Human trafficking is currently the most pervasive global illicit market, now surpassing the illegal cannabis trade and arms trafficking markets, and there are strong links between human trafficking and other forms of organized crime, including drug trafficking, cybercrime, and money laundering.

Internally displaced persons [3]

16.a Strengthen relevant national institutions, including through international cooperation, for building capacity at all levels, in particular in developing countries, to prevent violence and combat terrorism and crime

The level of internally displaced persons within countries. Where people flee due to armed conflict, generalized violence, violations of human rights, or natural or human-made disasters, and governments lack the capacity to provide protection and assistance, there is greater vulnerability to labor exploitation.

Birth registration levels [4]

16.9 By 2030, provide legal identity for all, including birth registration

The level of birth registration within countries. Without legal proof of identity, children are uncounted and invisible. Birth registration helps to protect children from exploitation. When children are unable to prove their age, they are at higher risk of being forced into the labor market. Migrant and refugee children with legal proof of identity are better protected against trafficking, illegal adoption, and family separation.

Armed conflict [5]

16.1 Significantly reduce all forms of violence and related death rates everywhere

The level of armed conflict within countries. Modern slavery and human trafficking are present in 90% of modern wars. This exploitation includes forced labor by one or more sides in a conflict in industries that generate income for the armed group, or forced labor by other groups taking advantage of weakened rule of law in conflict contexts. In both instances, this forced labor enters global supply chains.

Political violence and terror [6]

16.7 Ensure responsive, inclusive, participatory, and representative decision-making at all levels

The level of political violence and terror within countries. Modern slavery, including forced labor, takes root in contexts with low levels of inclusive, participatory governance and high levels of state-sanctioned killings, torture, disappearances, and political imprisonment.

Government anti-slavery efforts [7]

16.6 Develop effective, accountable, and transparent institutions at all levels

Government performance on tackling modern slavery, including forced labor, within countries. Forced labor thrives in contexts where a government does not make sustained efforts across forced labor prevention, protection, and prosecution, including in the areas of survivor support, procurement of goods and services, and addressing key risk factors.

Freedoms of movement, speech, and religion

16.10 Ensure public access to information and protect fundamental freedoms, in accordance with national legislation and international agreements

The extent of government respect for fundamental freedoms within countries. Vulnerability to modern slavery, including forced labor, increases in contexts with low levels of respect for human rights to freedom of movement, speech, assembly, association, and religion.

Institutional discrimination [8]

16.b Promote and enforce non-discriminatory laws and policies for sustainable development

The level of institutional discrimination within countries. Formal and informal laws, social norms, and customary practices that increase gender inequalities and limit women's social and economic participation create contexts of vulnerability for women and girls to early marriage, human trafficking, and forced labor.

Unemployment and underemployment [9]

8.5 By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value

The level of unemployment and labor underutilization within countries. Unemployed or precariously employed people have increased levels of vulnerability to forced labor because they often have debt. With increased household debt due to unemployment and limited employment choices, workers take greater risks and accept work in exploitative conditions. In addition, as parents’ access to work decreases, the risk of child labor increases.

Labor rights protections [4]

8.8 Protect labor rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and those in precarious employment

The level of labor rights protections within countries. Forced labor risk is higher in contexts with poor labor rights protections, including collective bargaining, the minimum wage, limitations on working hours, protection from unsafe and unhealthy working conditions, and protection of children and young people.

Youth unemployment [10]

8.6 By 2020, substantially reduce the proportion of youth not in employment, education, or training

The level of youth unemployment within countries. Traffickers often target unemployed youth. In contexts where job creation does not match population growth, young people attempt economic migration, making them vulnerable to exploitative recruitment practices. They risk incurring debt from migration costs and becoming trapped in forced labor to repay this debt.

Resource efficiency and environmental protection [11]

8.4 Improve progressively, through 2030, global resource efficiency in consumption and production and endeavor to decouple economic growth from environmental degradation, in accordance with the 10-year framework of programs on sustainable consumption and production, with developed countries taking the lead

The level of resource efficiency and environmental protection within countries. There are extensive links between environmental degradation and forced labor. Where a country's resource demand exceeds nature’s capacity to meet that demand, communities can be displaced, or their livelihoods in farming, fishing, or mining can be disrupted, leaving them in poverty and vulnerable to exploitation.

Informal economic activity [12]

8.3 Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage the formalization and growth of micro-, small-, and medium-sized enterprises, including through access to financial services

The level of informal economic activity within countries. Workers in highly informalized sectors are more vulnerable to exploitation because they are often poor, socially vulnerable, and financially or economically dependent. Informal work is often more labor-intensive, and informal incomes are lower than equivalent work in the formal sector.

Youth employment policies and action [4]

8.b By 2020, develop and operationalize a global strategy for youth employment and implement the Global Jobs Pact of the International Labour Organization

The extent of youth employment policies and action within countries. Forced labor risks for young people are higher in contexts with low public expenditure on social protection and employment programs and are reduced through programs and strategies that promote education, fair recruitment, safe migration, and decent work.

Financial inclusion [13]

8.10 Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance, and financial services for all

The level of financial inclusion within countries. People who are unbanked and with limited access to affordable credit, insurance, or social protection schemes may seek to cover expenses by taking out loans from informal money lenders at high interest rates, attempting risky migration for work, or taking loans from employers. These behaviors can facilitate situations of forced labor, which can then lead to exploitative situations. Some may also receive advance payments or loans from employers, which can facilitate a bonded labor relationship.

Economic growth [14]

8.1 Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries

The level of economic growth within countries. Forced labor prevalence is significantly lower in countries with high levels of economic development. Contexts with low economic growth have greater vulnerability to forced labor as they have fewer job opportunities and less investment in education and healthcare. In turn, forced labor holds back overall economic growth and development by lowering productivity.

Trade openness [15]

8.a Increase Aid for Trade support for developing countries, in particular least developed countries, including through the Enhanced Integrated Framework for Trade-Related Technical Assistance to Least Developed Countries

The level of trade openness within countries. Countries with high levels of trade openness have lower levels of forced labor risk. Engaging in international trade can reduce the use of forced labor through its impact on income or through changes in regulations. Trade can trigger anti-forced labor policies in the country as trade partners demand higher labor standards.

Economic contribution from tourism [16]

8.9 By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products

The level of economic contribution from tourism within countries. Policies that promote sustainable tourism create jobs, improve infrastructure, and contribute to sustainable economic growth, helping to create a context of poverty reduction and decent work.

Equal rights and access to economic resources [17]

1.4 By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and financial services, including microfinance

The extent of equal rights and access to economic resources within countries. Modern slavery risks, including forced labor, are higher in contexts where women do not have equal rights and access to services, land, property,  gainful employment without the need to obtain a male relative's consent, and non-discrimination from employers. Lack of protection for women's economic rights and lack of gender equality across reproductive health, empowerment, and the labor market leads to greater vulnerability for women to exploitation.

Multidimensional poverty [18] [19]

1.2 By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions

The level of multidimensional poverty within countries. Nighttime light data, in combination with population data, enables monitoring of patterns in economic development and wealth, investments in infrastructure, and multiple dimensions of poverty risk. Contexts with deprivation across not just monetary poverty but also basic infrastructure services will have higher levels of inequality, extreme poverty, and vulnerability to exploitation.

Social protection coverage [20]

1.3 Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable

The extent of social protection coverage within countries. Contexts with poor social protection benefits have higher risks for forced labor. Without extending protection through contributory social insurance, tax-funded social assistance, and other schemes providing basic income security, countries cannot reduce poverty, inequality, and vulnerability to exploitation.

Extreme poverty and income inequality [21] [22]

1.1 By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than US$1.25 a day

The level of extreme poverty and income inequality within countries. Forced labor takes root and persists in contexts with high levels of extreme poverty. Difference in income, especially the income of the poorest in the population, is a significant driving factor encouraging individuals to undertake risky migration and accept work under exploitative conditions.

Quality of governance and public services [23]

1.b Create sound policy frameworks at the national, regional, and international levels, based on pro-poor and gender-sensitive development strategies, to support accelerated investment in poverty eradication actions

The quality of governance and public services within countries. Countries with poor public services and policy implementation cannot effectively eradicate poverty and protect vulnerable workers from risks of exploitation.

Government investment in essential services [4]

1.a Ensure significant mobilization of resources from a variety of sources, including through enhanced development cooperation, in order to provide adequate and predictable means for developing countries, in particular least developed countries, to implement programs and policies to end poverty in all its dimensions

The level of government investment in essential services within countries. Forced labor can persist in contexts without adequate programs and policies to reduce poverty through services like education.

Impact of economic shocks on vulnerable communities, including refugees [24] [25]

1.5 By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social, and environmental shocks and disasters

The risk of economic shocks for vulnerable communities within countries. Forced labor risk increases during climate-related extreme events and other economic, social, and environmental shocks and disasters. Where a country has a poor overall quality of infrastructure and/or a large existing refugee population, these shocks create much higher levels of vulnerability to exploitation.

Resilience to climate-related hazards and disasters [26]

13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries

The level of resilience to climate change-related hazards and disasters within countries. In contexts with high levels of tree loss, the incidental biodiversity loss contributes to pervasive poverty, loss of livelihoods, and food insecurity, exposing vulnerable populations to higher risks of forced labor. In turn, their forced labor in illegal deforestation leads to further tree loss.

Climate change-related hazard exposure [27]

13.3 Improve education, awareness-raising, and human and institutional capacity on climate change mitigation, adaptation, impact reduction, and early warning

The level of climate change-related hazards and disasters within countries. Earthquakes, tsunamis, floods, tropical cyclones, and droughts exacerbate vulnerabilities conducive to forced labor, including economic inequalities, displacement, and lack of access to essential services. Unstable environments in the wake of a natural disaster may incentivize predatory behavior and risky survival strategies, increasing exploitation risk.

Climate change measures to reduce emissions [28] [29]

13.2 Integrate climate change measures into national policies, strategies, and planning

The extent of measures to reduce carbon emissions within countries. Enslaved people are forced to work in ways that are extremely destructive. The emissions from forced labor are larger than the national emissions from Canada, Germany, and the UK combined. Sustained success in developing national policies and strategies that reduce carbon emissions will also mean measures to regulate industries that are environmentally destructive and have high levels of forced labor.

Climate change adaptation and mitigation planning [27]

13.b Promote mechanisms for raising capacity for effective climate change-related planning and management in least developed countries and small island developing states, including focusing on women, youth, and local and marginalized communities

The extent of climate change adaptation and mitigation planning within countries. Vulnerability to forced labor due to climate change-related hazards is increased when a country has not taken actions to increase its society's resilience to cope with disasters, including for vulnerable communities.

Climate change adaptation and mitigation infrastructure [27]

13.a Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possible

The extent of climate change adaptation and mitigation infrastructure within countries. Vulnerability to forced labor due to climate change-related hazards is increased when a country does not have strong existing infrastructure to provide emergency response and recovery, such as communication networks and accessible health systems.