Modern discussions around forced labour are often shaped by outdated assumptions. Many people still associate the term with visible brutality, remote locations, and illegal workplaces.
According to Moody’s, while those images have historical grounding, they fail to capture how forced labour manifests today across regulated industries, legitimate businesses, and complex global supply chains.
In reality, forced labour has evolved into a far more subtle and systemic problem. It frequently operates through deceptive recruitment practices, excessive recruitment fees that create debt bondage, restrictions on workers’ freedom of movement, and the confiscation of identity documents. These practices are not always immediately visible, particularly when they occur several tiers removed from an organisation’s direct operations. As a result, even companies with strong ethical intentions can be exposed when visibility is limited and oversight is fragmented.
This gap between perception and reality allows persistent myths about forced labour to take hold. Those misconceptions do more than distort understanding; they actively undermine prevention efforts by encouraging complacency and reactive risk management. Addressing forced labour requires a clearer view of how it actually operates today, and why traditional assumptions are no longer sufficient.
One of the most damaging myths is the belief that forced labour is rare. According to the International Labour Organization, forced labour is defined as “all work or service which is exacted from any person under the threat of a penalty and for which the person has not offered himself or herself voluntarily.” In 2022, the ILO estimated that 27.6m people globally, including 3m children, were trapped in forced labour, generating $236bn in illegal profits each year. These figures illustrate that forced labour is not an edge case, but a widespread and deeply embedded risk across global production networks.
Another common misconception is that legitimate companies could not knowingly be linked to forced labour. While organised crime plays a role, exploitation also thrives in lawful sectors such as agriculture, construction, logistics, food production, and manufacturing. A lack of deep-tier supplier oversight means abuses can persist even where workers are technically classified as legal employees. Recent cases involving electronics supply chains in Southeast Asia have shown how wage theft, recruitment-related debt, and passport confiscation can occur within otherwise compliant-looking operations.
There is also a widespread assumption that victims will report exploitation as soon as it occurs. In practice, many victims are psychologically coerced, financially dependent, or fearful of retaliation. Younger workers and migrants are particularly vulnerable, while forms of exploitation such as domestic servitude or forced marriage remain chronically underreported.
Forced labour is not always hidden from view. High-profile investigations in recent years have revealed “slavery-like conditions” at large industrial construction sites, including within clean-tech and infrastructure projects. These cases demonstrate that forced labour can exist openly within reputable supply chains, yet still be overlooked due to weak monitoring and misplaced trust.
Finally, forced labour is not confined to distant countries. In developed economies, forced criminality has emerged as a growing threat, particularly affecting children coerced into activities such as drug trafficking. This form of exploitation deliberately blurs the line between victim and offender, making detection and intervention more difficult.
Forced labour is not only a supply chain issue. It is a financial crime issue, a regulatory risk, and a human rights challenge that affects communities worldwide. Dispelling outdated myths is a critical step towards meaningful prevention, accountability, and long-term resilience.
Copyright © 2026 RegTech Analyst
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