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19 May 2022

Migrant workers: Estimated USD589bn in remittances diluted by charging recruitment fees stalling development of low income countries, says IHRB

Photo Play, Shutterstock

A wide range of fees imposed on migrant workers, mainly recruitment fees, to secure jobs abroad are proving to be a hindering factor for economic development and prosperity in both origin and destination countries. As many of these migrant workers aim to remit portion of their wages to their countries of origin, these extortionate recruitment fees which sometimes are equal to an equivalent of 24 months of wages for some workers trap these workers in a cycle of debt associated with these fees, resulting in not realising the full potential of these remittances. The estimated value of remittances to low and low-middle income countries in 2021 stood USD589bn.