Rural Employment Demand in India

Increase in Work Demand under MGNREGS

• Work demand under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) rose for the second month in December.
• About 25.8 million people sought work, an increase of 7.4% from the previous year.
• This included 21.58 million households, showing an 8.3% rise.
• The rise was attributed to an unfavourable base effect and the return of farm laborers post-Kharif harvest.

Factors Affecting Work Demand

• Work demand had decreased from November 2023 to October 2024 due to improved job prospects.
• High monsoon rains in the previous year encouraged a shift to farming.
• After harvesting summer crops, laborers returned to seek work in December.

Economic Indicators and Future Outlook

• Rural consumption demand remained resilient, as indicated by increased sales of two-wheelers, three-wheelers, and tractors.
• The finance ministry forecasted economic growth to reach 6.5% in FY25, up from 6% in the fiscal first half.

Summary of Fiscal Quarter Data

• In fiscal first three quarters, 229.8 million individuals from 183 million households demanded NREGS work.
• Work demand increased by 19.7% for individuals and 17.5% for households in December compared to November.