The ripple effects of economic instability on human trafficking

Economic policies, such as the imposition of tariffs, can have far-reaching consequences beyond their intended economic targets. One such consequence is the potential exacerbation of human trafficking.  

Economic instability creates an environment that leaves individuals more vulnerable to exploitation and human trafficking. Job losses, rising poverty, and financial desperation create opportunities for traffickers to take advantage of those in need – luring vulnerable individuals with promises of shelter, stability, or employment opportunities.  

Additionally, economic downturns may reduce government funding for anti-trafficking initiatives, and strain support systems designed to protect at-risk populations 

Economic policies do not exist in a vacuum, and their ripple effects can have serious consequences for vulnerable populations.  

Financial hardship and vulnerability 

Periods of economic instability often lead to increased unemployment rates and reduced income. An increase in unemployment and underemployment aggravates the conditions that render people and communities more vulnerable to trafficking and exploitation. 

Poverty and financial insecurity may push people into situations where they take risks that they otherwise wouldn’t consider. A person facing eviction from their home, dealing with mounting debts, or experiencing food insecurity may be more likely to accept dubious job offers or work in unsafe conditions.  

Evidence from the 2008 global financial crisis demonstrates how economic downturns exacerbate trafficking vulnerabilities. Research found that as unemployment rates surged and opportunities dwindled, cases of human trafficking increased in many regions.  

A similar trend was seen in 2020, as the economic downturn caused by the COVID-19 pandemic made individuals more likely to accept risky job offers or high-interest loans to survive, only to end up trapped in exploitative situations. 

Exploitation in the labour market 

Unstable economies provide fertile ground for forced labour. As formal job opportunities dwindle, individuals often turn to informal or unregulated labour markets, where protections for workers are minimal or nonexistent. This lack of oversight creates opportunities for traffickers to take advantage of desperate workers, subjecting them to dangerous conditions, unfair wages, and coercive practices. In many cases, individuals are misled by false job offers, trapped in debt bondage, or forced to work under threats of violence. 

Increased migration  

Economic hardship is often a driver of migration as people search for better opportunities in other regions or countries. Migrants, especially those lacking legal protections, are at a higher risk of trafficking. Migrants are particularly vulnerable to human trafficking due to several factors, including language barriers, a lack of access to services and support, and a lack of access to accurate information about their rights as workers.  

Upon arriving at their destination, migrants may face limited employment options, pushing them into informal or unregulated labour markets where they are at high risk of exploitation.  

Effect on anti-trafficking efforts 

Economic crises strain government resources, which can lead to reduced funding for aid and anti-trafficking initiatives. 

According to the United Nations Human Rights Office, hundreds of thousands of people in Southeast Asia are being held in online scam compounds, where they are forced to participate in online scams – such as romance or cryptocurrency scams - targeting people around the world. 

The recent freeze on US foreign aid has hindered efforts to combat human trafficking in these countries, where organizations rely on such funding to operate shelters and provide support to victims and survivors. The withdrawal of aid not only impacts direct services for trafficked individuals; it may also reduce the capacity of governments and NGOs to dismantle trafficking networks and prosecute perpetrators. 

Tough times can also lead to donors tightening their belts, making it even more difficult for anti-trafficking groups to continue their work.. 

So, what can you do?  

While we don’t have the power to single-handedly improve the economy, we do have the power to support and look out for one another. When times are tough and individuals are more vulnerable to exploitation, collective support can be a lifeline. Sometimes, a simple conversation can provide someone with the reassurance or resources they’ve been lacking. 

If you’re able to, consider donating to an anti-trafficking organization like ACT. We rely on donations from supporters like you to continue our work and cover costs that grants often will not. Any contribution, no matter the size, makes a real difference in the lives of victims and survivors of human trafficking. 

Volunteering your time with organizations that support vulnerable populations is another meaningful way to make an impact. Many people, especially migrants and those facing economic instability, are isolated and may not know where to turn for help. By volunteering, you provide not only extended organizational capacity, but also hands-on assistance and a sense of belonging and hope to those who need it most. 

By joining together, we can create a stronger, more resilient community that supports those who are most vulnerable in tough economic times.