Demand for MGNREGS work surpasses last year’s numbers

The start of the Covid-19 pandemic saw nationwide reverse migration of labourers when the lockdown was announced. Once the migrants went back to the rural areas, MGNREGS became the mainstay for employment generation in the rural areas, with skilled and unskilled workers both lining up to register for work. Last fiscal, the scheme saw work demand soaring to an all-time high. Last fiscal, 11.24 crore people had demanded work under the scheme, of which 9.53 crore were provided employment.

Trends of the present fiscal, that is 2021-22, show that till date, 11.57 crore people had applied for work, of which 9.53 crore have been given employment. With more than a month left for the fiscal to end, employment generation and demand can touch another high. Demand pattern, as analysed by the web portal of MGNREGS, shows that demand had peaked in May and June after which it had dipped slowly to a record low in November. Later this demand slowly increased.

This increased demand, ground surveys say, is an indication of continued rural distress which has seen many people seeking job here as compared to other formal sectors. The Economic Survey termed this as an indicator for rural labour markets and pointed out how the work demand had peaked during the nationwide lockdown in 2020. After that the demand has stabilised but the demand for work is still higher than pre pandemic levels.

“During the nationwide lockdown, the aggregate demand for MGNREGS work peaked in June 2020, and has thereafter stabilized. During the second Covid wave, the demand for MGNREGS employment reached the maximum level of 4.59 crore persons in June 2021. Nonetheless, after accounting for seasonality, the demand at an aggregate level still seems to be above the pre-pandemic levels of 2019. For some states like Andhra Pradesh and Bihar, the demand for work under MGNREGS has reduced to below the pre-pandemic level,” the survey said.

Ruling out a direct relation of demand generation and migrant labour, the survey pointed out how source states like West Bengal, Madhya Pradesh, Odisha and Bihar, the MGNREGS employment in most months of last year is lower than corresponding levels of 2020.

“In contrast, the demand for MGNREGS employment has been higher for migrant recipient states like Punjab, Maharashtra, Karnataka and Tamil Nadu for most months in 2021 over 2020. There are still other states that do not neatly fit into this categorization. Therefore, the issue needs further study,” the survey said.