Unreported and unaddressed: labor exploitation rife in the Western Balkans

The Western Balkans face growing concerns over the rising numbers of workers, local and migrant, being exploited and living in modern slavery. But despite this growing scourge, the crime is going unreported and unaddressed reports Balkan Insight.  

Unintentionally legitimizing labor exploitation 

Despite economic progress the Western Balkans remain a hub for human trafficking, acting as an origin, transit and destination location for victims of modern slavery. And despite economic progress, efforts to combat the various forms of trafficking in the region are falling short according to a new report by Global Initiative Against Transnational Organized Crime (GI-TOC).  On top of the lack of progress, the region’s informal economy adds to the risk of labor exploitation for wage workers, along with significant youth unemployment and high poverty rates. 

Senior analyst at the GI-TOC, Sasa Djordjevic stated: 

“Exploitation of workers is often enabled and facilitated by corrupt practices, and it is dishearteningly known as an ‘open secret’ across the Western Balkans, yet remains largely unchallenged, partly due to poor protection for whistleblowers.” 

Labor exploitation as defined by the region includes non-payment or underpayment of wages, excessive working hours and unsafe conditions and examples abound of exploitative contracts, cyber slavery, and toxic work environments to name a few. One worker from Kosovo said the informal economy and the lack of protections for whistle blowers means the system itself “unintentionally legitimizes labor exploitation.” 

Labor exploitation an “entrenched presence”  

There is no doubt that an informal economy, or employment that happens without official contracts and off the record, often fosters exploitative labor practices. Between 2016 and 2021 hidden employment ranged from 36 per cent in Montenegro to 80 per cent in Kosovo, according to the SELDI Hidden Economy Monitoring System. An environment with high unemployment, a large informal economy and few new job opportunities creates the perfect toxic combination for labor exploitation to flourish.  

Sasa Djordjevic said:  

“Policymakers must prioritize tackling labor exploitation. Improving work inspections, law enforcement and oversight, collaborating with civil society and addressing corruption are essential.” 

Djordjevic adds that economic diversification and job creation, particularly for young people, are also vital for addressing the issue at a systemic level. This should include formalizing the informal economy and reforming social protection programs to help vulnerable workers and victims alike. Only by using a multi-faceted approach can policymakers hope to start making progress on labor exploitation in the Western Balkans.