Is the drop in MGNREGA work demand a sign of improving rural job markets?

Civil society activists and people working on the ground, however, believe that the decline in work demand is artificially created due to fund shortages for the programme

Demand for work under the flagship Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) slumped in August 2024. Data shows that in the month, around 16.06 million households sought work under the scheme, the lowest monthly demand since October 2022.

Though this number is still higher than pre-Covid levels, it suggests an improvement in rural job markets from various angles.

The active monsoon and the surge in kharif sowing activities this year could also be a reason behind the dip in demand as manual casual labourers could be getting better work somewhere else.

Distress employment scheme

Several