Work demand under NREGS down, again

Work demand under the government’s flagship rural employment scheme fell for a tenth straight month in August from the year ago as strong economic activities brightened more remunerative job prospects, and the base effect remained favourable. About 19 million individuals sought work in August under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), down 17% from 22.91 million a year earlier, preliminary data compiled by the rural development ministry showed.

The individuals demanding work represented 16.1 million households in August, down 16% from a year before.

Plentiful monsoon showers in August also aided the typical migration of unskilled workers to agriculture during the kharif crop sowing season, reducing demand for unskilled jobs under the NREGS, experts said.

Erratic rains had kept up demand for NREGS work in August 2023, up 19.5% from a year earlier. But the situation reversed this year, with plentiful showers–particularly since July-saw a 7% rainfall surplus so far in the June-September monsoon season.

Sequentially too, fewer people and households sought work this year and their numbers dropped 16.6% and 14.9%, respectively, in August from the previous month.

The International Monetary Fund has forecast India will remain world’s fastest-growing major economy in the current fiscal year and the next, with rates of expansion touching 7% and 6.5%, respectively, more than double the global averages.

Demand slows from key states
Fewer individuals from major beneficiary states sought NREGS work in August. The demand dropped 79% in Jharkhand, 41% in Chhattisgarh and 39% in Madhya Pradesh.