Work demand under NREGS down, again

The individuals who sought work under MNREGS in December represented 19.97 million households, down 5.7% from 21.18 million households a year earlier. Demand for work under the MGNREGS moderated for a second straight month in December from a year before. Most of the demand came from Tamil Nadu (3.35 million), Rajasthan (2.60 million), Madhya Pradesh (2.38 million), Uttar Pradesh (2.34 million) and Bihar (1.59 million).

Person-days generated under the scheme were to the tune of 1,110 million between April and June this fiscal, against about 1,140 million and 1,160 million in the corresponding quarters of FY23 and FY22, respectively, showed an analysis by the rural development ministry.

Work demand under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) saw a significant decline in July, dropping 21.6% year-over-year and 33.4% from the previous month. The decrease is attributed to strong economic activity and ample monsoon rains, which have shifted unskilled labor towards agriculture.

Demand for work under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) dropped 2% YoY in May due to allegations of fund misappropriation in West Bengal, but rose 34% MoM due to subdued farm activity. However, demand for work excluding West Bengal rose 0.4% YoY. The scheme typically experiences higher demand during the summer, with some states exhausting over 50% of their labour budget in the June quarter.

After the pandemic years, which forced the government to scale up spending on the scheme, the disbursal of funds were apparently curbed in FY23, given a pick-up economic activities.

Demand for work under India's rural job guarantee scheme, MGNREGS, dropped for a seventh consecutive month in May, signaling improved economic conditions at the start of the fiscal year. About 37.46 million individuals sought work, down 12.1% from the previous year, with 27.18 million households seeking work, a 14.3% drop. The trend is attributed to better-paying job opportunities and the impact of heat waves across the country, although the data is subject to revision.

The demand for work under the government's rural job scheme, MGNREGS, has seen an unusual trend this fiscal year. While demand usually peaks in the summer months, it has grown rapidly during the monsoon season. Experts believe that erratic seasonal rains have prevented rural workers from migrating to farming, leading them to rely on the MGNREGS for employment.

In the three years since the pandemic, the amount of work in the rural jobs guarantee programme has declined every financial year from 38.9 million person days in 2020-21 to 28 million in the year so far | Latest News India