The report says that trafficking for the purpose of labour exploitation is on the rise in many places, including Belgium, Cyprus, Georgia, Portugal, Serbia and the UK.
The Council of Europe (CoE) study says this has now overtaken sexual exploitation as the main form of human trafficking.
According to the annual report, published by the Strasbourg-based CoE on Tuesday, most identified victims are men, although women and children are also affected.
It states that men are often exploited in industries including agriculture, construction and fisheries, whereas women tend to be exploited in more isolated settings such as domestic or care work - where they are sometimes victims of both labour and sexual exploitation.
The CoE has now called on national authorities across Europe to work more closely with NGOs, trade unions and business to tackle trafficking for labour exploitation.
It has outlined a number of specific ways in which this should be done and highlighting good practices in several different countries.
The CoE’s group of experts on action against trafficking in human beings (GRETA) says that official figures underestimate the true scale of the problem and there have been few successful prosecutions and convictions.
Based on GRETA’s country-by-country monitoring work, the report says that labour exploitation has emerged as the predominant form of trafficking in several European countries including Belgium, Cyprus, Georgia, Portugal, Serbia and the UK.
However, all countries that have been evaluated twice by GRETA so far have indicated an upward trend in trafficking for labour exploitation in recent years.
The report states that most identified victims are men, although women and children are also affected.
GRETA President Siobhán Mullally said, “Our monitoring shows that more and more people are being trafficked to work in awful conditions in Europe, both within and across national borders.
“Victims are often reluctant to come forward as they may fear deportation or retaliation from criminal trafficking networks. Prosecutions and convictions of the perpetrators are also very rare.
“Some countries have already made important steps forward in this area, but many others need to improve their policies and practices. States across Europe need to work closely together with NGOs, trade unions and the private sector to help end this heinous exploitation and abuse.”
The CoE’s convention on action against trafficking in human beings is a legally-binding international treaty which obliges countries to take a wide range of steps aimed at preventing human trafficking, protecting victims and prosecuting offenders.
GRETA is responsible for monitoring the implementation of the convention, based on country visits and information provided by national authorities and NGOs.