Demand for work under MGNREGA remained low in 2024, suggests improved rural economy: RBI

It said, "The total number of households demanding work under MGNREGA during the current year so far (Apr-Nov) in most months remained lower in comparison to post-pandemic years."

The scheme provides at least 100 days of guaranteed wage employment annually to households whose adult members volunteer for unskilled manual work.

The RBI noted that while November 2024 saw an 8.2 per cent month-on-month (m-o-m) and a 3.9 per cent year-on-year (y-o-y) increase in demand for MGNREGA work, largely due to the completion of rabi sowing, the overall demand from April to November 2024 has been lower compared to post-pandemic years.

This trend reflects an improving employment scenario in the rural economy, particularly in the agriculture sector.

The report also noted that in October 2024, MGNREGA work demand dropped by 7.5 per cent, attributed to higher farm sector employment during the kharif harvest season. This decline aligns with the broader recovery in rural job markets.

As of November 29, 2024, the total number of registered workers under MGNREGA stood at 25.17 crore, slightly lower than the 25.68 crore workers registered in the financial year 2023-24.

Meanwhile, the report also highlighted that employment in the organized manufacturing sector has shown consistent growth. The Purchasing Managers' Index (PMI) indicates job creation in the sector has expanded for nine consecutive months. The services sector also experienced a surge in employment, with job creation growing at its fastest pace since the survey's inception.

The MGNREGA program, launched to ensure wage security and reduce rural distress, has seen fluctuating demand over the years, influenced by seasonal agricultural activities and broader economic trends.

The recent data suggests an improving rural economy, though MGNREGA remains a critical safety net for rural households during periods of economic uncertainty. (ANI)