Seasonal weak demand for work under MGNREGA much sharper this year

Seasonal fall in demand for work under rural jobs scheme much sharper Jun-Oct this year

New Delhi: Demand for work under the Mahatma Gandhi National Rural Employment Guarantee Act, or MGNREGA, has dropped sharply since June, with official data showing that the number of people seeking employment under the rural jobs scheme fell nearly two-thirds between June and October.

Total MGNREGA participation fell from around 35.4 million persons in June to 12.8 million in October, according to the ministry of rural development, marking one of the steepest mid-year declines in recent years. During the same period last year, participation had dropped from 34.2 million to 19.9 million, a 42% decline.

States such as Andhra Pradesh, Bihar, Madhya Pradesh, and Uttar Pradesh, which account for a large share of total MGNREGA employment, saw the most pronounced declines. Participation in Andhra Pradesh fell from about 5 million workers in June to just over 445,000 in October.

Bihar recorded a drop from 3.5 million to 518,000, while Madhya Pradesh saw participation decline from 3.5 million to 878,000 over the same period. Uttar Pradesh, which had the highest number of workers earlier this year, saw numbers fall from 3.7 million in June to about 1.15 million in October.

Other large states such as Rajasthan, Odisha, Karnataka, and Tamil Nadu also reported notable moderation in job demand through the latter half of the year.

The sharpest decline came after July, when monsoon-linked agricultural work typically absorbs much of the rural labour force, reducing dependence on public employment programmes.

By November, nationwide participation had dropped below 5 million workers, during the first eight days of the month, indicating that demand for work continued to weaken further.

MGNREGA, one of India's largest social safety nets, guarantees up to 100 days of paid unskilled work to any adult member of a rural household who demands it. Demand for work under the scheme generally rises when rural incomes weaken or non-farm employment opportunities shrink.

A spokesperson for the rural development ministry had not responded to emailed queries at the time of publishing.

“Employment demand under MGNREGA usually peaks in May and June as migrant workers return home during the North Indian summer. Once agricultural activity picks up with the onset of the monsoon, the demand naturally tapers off,” said Kiran Limaye, senior research fellow at deAsra Foundation, a not-for-profit supporting entrepreneurship.

“The steeper fall this year could also suggest that urban migration is recovering to pre-covid levels... Another factor could be the rise in welfare spending and pre-election cash flows, which may be substituting for MGNREGA income in some areas,” he added.

On 14 October, Mint reported that the government is reviewing the budget for the MGNREGA scheme. The scheme's allocation has remained unchanged at ₹86,000 crore for two consecutive years, 2024-25, and 2025-26, respectively.

Source: LiveMint
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