Post: Human Trafficking and the Informal Labor Market: A Call for Action in Bangladesh

Human Trafficking and the Informal Labor Market: A Call for Action in Bangladesh

Human Trafficking and the Informal Labor Market: A Call for Action in Bangladesh

Human trafficking is a global crisis that robs millions of people of their basic human rights, turning them into invisible victims of exploitation. Globally, an estimated 49.6 million people are trapped in modern slavery, with most of them forced into labor and sexual exploitation.[1] The Asia-Pacific region, which includes Bangladesh, remains one of the most affected areas, with 29[2] million people living in forced labor or trafficking conditions. In Bangladesh, thousands of individuals, including women, children, and migrant workers are trafficked annually, often lured by false promises of better jobs abroad or exploited within the country itself. This intersection of labor economics and human trafficking is not only an economic disaster but a profound human rights violation that demands urgent action. Bangladesh’s labor market, characterized by an informal sector and minimal protections, remains fertile ground for traffickers, and it is time for the country to confront this issue head-on.

The Vulnerability of Bangladesh’s Workforce

Bangladesh’s economy is predominantly dependent on sectors such as textiles, agriculture, and construction, which employ millions of individuals. A significant majority of these workers are employed in the informal sector, which is devoid of fundamental legal protections, contracts, and social security — conditions that facilitate the exploitation of vulnerable people by traffickers. The most recent Labor Force Survey conducted by the Bangladesh Bureau of Statistics (BBS) indicates that approximately 84-85% of the total workforce (around 58 to 60 million out of approximately 69 to 70 million workers) is engaged in informal employment, frequently lacking official contracts, workplace safety measures, or legal entitlements. Informality is particularly prevalent in agriculture (about 97% of informal employment), manufacturing (nearly 89%), and even services (about 67%), resulting in millions lacking legal protection. Individuals in the informal sector are markedly more susceptible to exploitation, hazardous working environments, and inequitable compensation, which traffickers take advantage of.[3][4]

Workers in agriculture and construction often face harsh conditions and low wages. Migrant workers, especially those traveling abroad for better opportunities, are at risk of being deceived by unscrupulous recruiters who take advantage of them. Women and children are also vulnerable to trafficking for domestic labor, forced marriages, and sexual exploitation.

The demand for cheap labor, especially in sectors like textiles, is a major factor driving this issue. Many people in Bangladesh turn to traffickers because they see no other option for earning a living. This problem is worsened by a lack of education, gender inequality, and poverty, which make certain groups, especially women and children, more likely to fall prey to traffickers.

How Human Trafficking Affects Labor Economics

The Textile Industry: Bangladesh is known as one of the world’s largest exporters of garments. However, the sector relies heavily on cheap labor, much of which is provided by vulnerable workers, including children and women. Many are trafficked into sweatshops or informal factories where they face long hours, unsafe conditions, and little pay. Since trafficked workers are often paid less than the minimum wage, or not paid at all, ethical businesses that pay fair wages find it difficult to compete. This creates a race to the bottom in wages and working conditions, impacting the broader labor market and making it harder for fair employers to succeed.

Domestic Work: Trafficked women and children are often forced into domestic work in cities or abroad. These workers are typically isolated, work long hours, and are not paid fairly for their labor. Many times, they are subject to abuse and live in substandard conditions. The lack of regulations and protections for domestic workers makes them particularly vulnerable to exploitation. This sector remains hidden from official labor market data, contributing to a distorted labor market, where the exploitation of vulnerable people goes unchecked.[5]

Migrant Labor: Many Bangladeshis seek work abroad, particularly in the Middle East and Southeast Asia[6]. However, they are often victims of human trafficking. Migrants are charged hefty recruitment fees by unscrupulous agents, which leaves them indebted and vulnerable to exploitation. They may end up working in harsh conditions with little or no pay, facing abuse from employers. These labor abuses not only affect individual workers but also have broader implications for the country’s labor market. Trafficked migrant workers are often excluded from official labor statistics, leading to an inaccurate picture of the national labor force and creating economic inefficiencies.[7]

The Economic Consequences of Human Trafficking

From an economic perspective, human trafficking distorts the labor market. Trafficked workers are often paid much less than they should be or not paid at all. This gives businesses that exploit trafficked labor an unfair advantage over those that treat their workers fairly, leading to a race to the bottom in terms of wages and working conditions.

Moreover, trafficked workers are often hidden from the official labor market. They are not included in official employment statistics, and their work does not generate tax revenue. This creates economic inefficiencies and makes it harder for the government to manage the labor market effectively.

The Social Costs: More Than Just Economics

The impact of human trafficking goes far beyond just economics; it destroys lives and communities. Survivors are often separated from their families, deprived of education, and forced to endure physical and emotional abuse. The trauma caused by trafficking can have long-lasting effects, not only on the survivors themselves but also on their communities.

In Bangladesh, trafficking often involves marginalized groups who are already at a disadvantage. For example, women and children from rural areas are frequently targeted by traffickers, who offer them false promises of a better life, only to exploit them later. The cycle of poverty, combined with gender-based violence and discrimination, makes these individuals more vulnerable to exploitation.[8]

What Can Be Done to Combat Human Trafficking in Bangladesh?

To tackle human trafficking, Bangladesh must address the root causes of this issue. The following steps can help create a safer, fairer labor market:

Strengthen[i]: The government should ensure that labor laws are enforced, especially in the informal sectors. Better regulation can make it harder for traffickers to operate and will help protect workers’ rights.

Regulate Migration: Migrant workers should be given better information about their rights and legal pathways to migration. This would help prevent them from falling into the hands of unscrupulous agents.

Strengthen Social Protection Systems: Strengthening social support systems can reduce the need for individuals to turn to traffickers. Access to education, healthcare, and social services can help vulnerable populations avoid exploitation.

Create Awareness Campaigns: Educating the public about the dangers of trafficking is key to preventing it. Both citizens and businesses need to understand the signs of trafficking and how to avoid being exploited or exploiting others.

Collaborate with International Partners: Human trafficking is a global problem. Bangladesh must work with neighboring countries, international organizations, and law enforcement agencies to combat trafficking networks and ensure victims are safely returned to their homes.

A Better Future for Bangladesh’s Workers

The link between labor economics and human trafficking is undeniable, and it is time for Bangladesh to act. By improving labor market regulations, protecting migrant workers, and addressing the root causes of trafficking, the country can reduce exploitation and create a fairer, more equitable economy. A shift towards better protections for workers, stronger laws, and a focus on human rights can help ensure that economic growth benefits everyone, not just the few who profit from exploitation. It is time to break the cycle of trafficking and build a future where all workers are treated with dignity and respect.

 

References:

[1] 2026. Blfbd.net. 2026. https://www.blfbd.net/modern-slavery-and-child-labour/.

[2] Asia and the Pacific | Walk Free.” 2023. Walk Free. September 13, 2023. https://www.walkfree.org/global-slavery-index/findings/regional-findings/asia-and-the-pacific.

[3] “Experts for Recognition of Informal Sector Workers.” 2026. Newagebd.net. February 18, 2026. https://www.newagebd.net/post/mis/277454/experts-for-recognition-of-informal-sector-workers.

[4] US. 2024. “USDOS – US Department of State (Author): ‘2024 Trafficking in Persons Report: Bangladesh’, Document #2111623 – Ecoi.net.” Ecoi.net. 2024. https://www.ecoi.net/en/document/2111623.html.

[5] US. 2024. “USDOS – US Department of State (Author): ‘2024 Trafficking in Persons Report: Bangladesh’, Document #2111623 – Ecoi.net.” Ecoi.net. 2024. https://www.ecoi.net/en/document/2111623.html.

[6] “Bangladesh Sends over 10 Lakh Workers Abroad till Nov 30 This Year | News.” 2026. BSS. 2026. https://www.bssnews.net/news/340245..

[7] “Global Estimates of Modern Slavery: Forced Labour and Forced Marriage,” International Labour Organization, October 9, 2025, https://www.ilo.org/publications/major-publications/global-estimates-modern-slavery-forced-labour-and-forced-marriage.

[8] Khandaker, Nasrin and Supreme Court of Bangladesh. “Study on Girls, Women and Children Trafficking in Bangladesh.” Journal-article. Journal of Emerging Technologies and Innovative Research. Vol. 10, 2023. https://www.jetir.org/papers/JETIR2306608.pdf.

 

[i] Bangladesh’s legal system largely conforms to ILO Convention No. 29 on Forced Labour and associated agreements. The Human Trafficking Prevention and Suppression Act of 2012 criminalizes forced labor and exploitation, embodying fundamental ILO principles. Nonetheless, the Bangladesh Labour Act, 2006 does not clearly ban forced labor or trafficking and offers minimal protection for informal and domestic workers, so failing to meet ILO requirements. The Overseas Employment and Migrants Act, 2013 aligns with ILO principles on equitable recruiting by tackling deceptive activities; nonetheless, inadequate enforcement diminishes its efficacy. To achieve complete compliance with ILO treaties and the 2014 Forced Labour Protocol, Bangladesh must incorporate explicit measures against forced labor into its labor legislation, broaden protections for informal and migrant workers, and enhance victim-centered remedies.

Written by Maisha Mumtaj. Maisha is a Research Officer at DataSense – iSocial.

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