The report rates 188 countries on their efforts to stamp out trafficking in persons.
Countries were ranked in four levels. Ghana dropped from last year’s second rank to third rank.
According to the report, Ghana remains a source, transit, and destination country for men, women, and children subjected to forced labor and sex trafficking.
The report also states that both boys and girls in Ghana are subjected to forced labour in fishing, domestic service, street hawking, begging, artisanal gold mining, agriculture, among others.
It says Child prostitution is prevalent in the Volta Region and is growing in the oil producing Western Region.
It adds there has been an increase in the number of Ghanaian girls from the Northern regions, working as head porters in Accra who are at risk of sex trafficking and forced labour.
The report further claims Ghanaian women and children are recruited and sent to the Middle East and Europe to engage in forced labour and sex trafficking.
It also says there was increase in the number of young Ghanaian girls recruited for jobs in the hospitality industry in the Middle East but upon arrival in the region were over-worked, starved, abused, molested and forced into prostitution.
The report says Ghana is a transiting point for the trafficking of West Africans sent to Italy and Germany.
The report identified corruption and bribery in the judicial system as factors frustrating anti trafficking measures.