MGNREGS Work Demand Declines For 12th Straight Month

The government’s flagship rural employment programme, MGNREGS, has reported a continuous drop in work demand for the 12th consecutive month in October, reflecting robust economic activity in sectors providing higher-income jobs and aided by a favourable base effect.

According to data from the Ministry of Rural Development, approximately 19.89 million individuals sought employment under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in October, marking a 9.2 per cent reduction from the same period last year. These applicants represented 16.97 million households, showing a 7.6 per cent decline year-on-year, as reported by the media.

From April to October, a total of 182.45 million people from 143.05 million households applied for work under the MGNREGS, with year-on-year declines of 14.9 per cent and 15.3 per cent, respectively, compared to the same period last year.

Month-on-month Trends
While the programme saw a year-on-year drop in demand, a month-on-month increase was noted in October. Individual demand for MGNREGS work rose by 5.1 per cent, while household requests for work increased by 5.9 per cent from September’s figures.

The erratic rainfall during the monsoon season between July and September had previously sustained the demand for MGNREGS work, as rural workers turned to the scheme for income due to disrupted agricultural work. However, since November, demand has gradually declined. Experts suggest the ample rainfall this year has encouraged many unskilled workers to return to agricultural activities, thereby reducing the demand for MGNREGS jobs.

In its latest economic review for September, the finance ministry noted a steady improvement in rural demand, supported by rising sales of fast-moving consumer goods (FMCG), three-wheelers, and tractors, even as urban consumption experiences a slowdown.

Additionally, the bi-monthly Rural Economic Conditions and Sentiments Survey by the National Bank for Agriculture and Rural Development (NABARD) highlighted that 37.6 per cent of rural households reported an increase in income, while 80.1 per cent observed a rise in consumption expenditures over the past year. This data reinforces the finance ministry’s view of growing momentum in rural economic activity.

The International Monetary Fund (IMF) has projected that India will continue as the world’s fastest-growing major economy for this financial year and the next, with expected growth rates of 7 per cent and 6.5 per cent, respectively, surpassing global averages significantly.