EXPLOITATION OF LABOR MIGRANTS AS A FACTOR OF COMPETITIVENESS IN THE GLOBAL LABOR MARKET

Abstract

The article provides a comprehensive analysis of the exploitation of labor migrants as a systemic factor shaping competitiveness in the global labor market. The relevance of the study stems from the rapid growth of international labor mobility, the intensification of socio‑professional segmentation of employment, and the spread of forced and semi‑forced labor practices that enable businesses to artificially reduce costs while simultaneously deepening structural socio‑economic imbalances.

The methodological framework of the research integrates general scientific and specialized methods, including analysis and synthesis, statistical and comparative analysis, as well as an institutional approach that made it possible to assess the impact of regulatory mechanisms on the situation of labor migrants across countries. The empirical base relies on data from leading international organizations, such as the ILO, OECD, IOM, and UNHCR, as well as specialized analytical reports on global labor market trends.

The findings demonstrate that labor migrants are predominantly concentrated in low‑paid, unstable, and high‑risk sectors of the economy, where they experience substantial wage gaps compared to local workers. The study identifies manifestations of “double discrimination” against migrant women and reveals key exploitation mechanisms - tied visas, restricted access to information, and confiscation of documents - which generate pronounced power asymmetries between employers and workers. The analysis shows that exploitative practices may reduce labor costs by up to 40% and generate significant illicit profits. Special attention is devoted to emerging forms of exploitation in the digital economy and the gig sector, as well as to the specific vulnerabilities of Ukrainian labor migrants in the context of war.

The article concludes that the exploitation of labor migrants provides only short‑term competitive advantages while undermining the sustainability of economic development and reinforcing global inequality. A promising alternative is a shift toward a model focused on human capital development, inclusive migrant integration, and productivity growth, which can prevent a “race to the bottom” and support a more balanced functioning of the global labor market.

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Received: 25.03.26 / Revised: 25.04.26 / Accepted: 02.05.26 / Published: 30.06.26