Chinese girls and women also are subjected to forced prostitution throughout the world with traffickers recruiting them, often from rural areas of China, using a combination of fraudulent job offers, heavy fees and threats.
Russia, according to the report, is a source, transit and destination country for men, women, and children who are subjected to forced labor and sex trafficking, with one million people exposed to "exploitative" labor conditions including withholding of documents, nonpayment for services, physical abuse, or extremely poor living conditions.
Some workers died
Workers from inside Russia as well as other countries in Europe, Central Asia, and Asia, including Vietnam and North Korea, it says, were subjected to forced labor in Russia. In some cases foreign workers died while locked in factories or employer-provided housing.
It cites documentation by Human Rights Watch that employers of construction projects related to the upcoming Winter Olympic Games in Sochi "withheld pay, disregarded contracts, and seized passports and work permits to keep workers in conditions of exploitation."
Russian citizens reportedly are victims of sex trafficking to many countries, the report says, including in Northeast Asia, Europe, Central Asia, and the Middle East.
In Uzbekistan children and adults are victims of government-organized forced labor during the annual cotton harvest. Uzbekistani women and children are trafficked for sex, often through fraudulent offers of employment, in the Middle East, Russia, Turkey, South Korea, China and many other countries.
The focus of this year's report is identifying victims and Luis CdeBaca, ambassador-at-large to monitor and combat human trafficking said only about 40,000 victims have been identified in the past year.
"In contrast, social scientists estimate that as many as 27 million men, women, and children are trafficking victims at any given time. That means we're bringing to light only a mere fraction of those who are exploited in modern slavery."
'Undermines the rule of law'
Secretary of State John Kerry said in the report that "human trafficking undermines the rule of law and creates instability. It tears apart families and communities. It damages the environment and corrupts the global supply chains and labor markets that keep the world's economies thriving."
Kerry said the report is not about pointing fingers.
"Rather, it provides a thorough account of a problem that affects all countries. It also lays out ways that every government can do better," he said.
One aim of the report is to encourage governments not only to pass legislation to fight trafficking but also to enforce laws.
The report says U.S. federal law enforcement has stepped up prosecutions and strengthened training of government officials.
But trafficking in America continues, targeting some of the most vulnerable members of society, both U.S. citizens and immigrants.
The report cites prosecutions involving defendants who used violence and torture to hold American girls and women --- including a pregnant woman --- in prostitution in Tennessee; defendants who held four Eastern European women in forced labor in massage parlors and forced prostitution in Illinois; and a defendant who held four West African children in forced labor as domestic servants in Michigan.