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Report

16 May 2022

Author:
Institute for Human Rights and Business

Realising Rights and Maximising Benefits - Improving Development Outcomes Through the Responsible Recruitment of Migrant Workers

In 2021, IHRB commissioned an independent study to examine the nexus between employment abroad and development outcomes, focusing in particular on lost economic and social benefits linked to migrant workers being charged recruitment fees and related costs...

This short paper highlights some of those key findings and offers recommendations for governments, business, and the recruitment industry on how to improve recruitment practices that would safeguard the rights of migrant workers whilst maximising the development potential of their work abroad.

The important role migrant workers play in the global economy can be seen in flows of money migrant workers send from countries of destination to countries of origin (remittances). For instance, in 2020, USD $34.5 billion was remitted by workers employed in Saudi Arabia. Similarly, in the same year, Bangladesh received $21.75 billion (6.6 % of its GDP) from workers abroad. Migrant remittances, often sent to some of the most financially challenged countries and communities, have the potential to help deliver a range of development benefits. In 2021 total remittances to low- and middle-income countries were projected to be $589 billion...

The value of migrant worker contributions to countries of both origin and destination is greatly eroded by a range of fees commonly charged to migrant workers. These fees form part of a ubiquitous business model that fails to respect the rights of migrants and persists due to government shortcomings in legislation and enforcement.