COVID-19 Creates Perfect Storm for Child Labor

The holidays are a time of joy and celebration, but this year, Santa Claus has been up to no good. The International Labour Organization (ILO) and United Nations Children’s Fund (UNICEF) have reported that child labor is on the rise for the first time since 2000, with a staggering 160 million children being victims of forced labor in 2020. The pandemic has only made matters worse, with a greater supply of susceptible children, greater demand for cheap labor, companies and families financially stretched, businesses shifting resources from business-enhancing to business-sustaining, and diminished protections against child labor due to reduced enforcement and regulatory oversight.

The pandemic has disrupted business operations, supply chains and economies around the globe, deepening the plight of our world’s most vulnerable people. Millions lost their jobs due to the pandemic, pushing many households into poverty and forcing children to become income earners to help make ends meet. With global school closures affecting approximately a billion students, many of these children depended on schools for their meals, leading to more children than ever being conscripted into work for basic sustenance, often trapped in dangerous occupations such as mining, agriculture and manufacturing.

COVID-19 has increased demand for cheap labor, as companies up and down supply chains face shrinking revenue. Many businesses were compelled to reduce wages to make even a small profit, and shady labor recruiters have been more aggressive in enlisting workers. This has opened the door for organized child traffickers, who care little about the health of their “workforce” and will make profits whenever and wherever possible.

Rather than paying fair wages, these wrongdoers “employ” forced and child labor at the lowest possible cost, intensifying the struggle to escape debt bondage. With many of the world’s supply chains in chaos and government resources stretched, COVID-19 has tragically reduced mechanisms that would otherwise combat child labor.

It’s time to recognize that as economies, businesses, and stakeholders adjust to what may be called “a new normal,” we’re also moving ever closer to a period of judgment. Consumers and enforcers alike will be evaluating the conduct of companies, and it’s time to get compliance houses in order. Companies can take stock and resume the fight against child labor inside and outside their supply chains.

Santa Claus has been up to no good this holiday season. The pandemic has created a tragic perfect storm, with a greater supply of susceptible children, greater demand for cheap labor, companies and families financially stretched, businesses shifting resources from business-enhancing to business-sustaining, and diminished protections against child labor due to reduced enforcement and regulatory oversight. It’s time for businesses to take stock and resume the fight against child labor inside and outside their supply chains. Consumers, and particularly the ever-expanding subgroup of socially conscious consumers, will expect nothing less.