MGNREGS work demand plummets by over 25%

Demand for work under the government’s flagship rural employment scheme dropped by a quarter in August from a year before, reflecting buoyant economic activities that usually open up better-paying job opportunities in industrial and other sectors.

About 14.19 million people sought unskilled work under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) during the month, against 18.98 million a year ago, showed data from the rural development ministry.

These people came from 11.88 million houses, a 26% year-on-year decline. The data lends further credence to the finance ministry’s assertion that the rural economy remains resilient. This was the second straight month when MGNREGS work demand fell on a year-on-year basis. But the drop in August was steeper than in the previous month, when the number of people seeking such work saw an 11.5% decline.

“The moderation in August comes on an unfavourable base (work demand had fallen in August last year). This means rural economic activities remained strong,” said a senior official, who did not wish to be identified. “Also, monsoon rains remained plentiful in August, both last year and this year. So, the usual migration of unskilled labour to agriculture during the monsoon season wasn’t hampered.”