MGNREGS demand drops closer to pre-Covid levels

Demand for work under the Mahatma Gandhi National Rural Employment Guarantee scheme fell sharply in August and inched closer to the pre-covid levels, suggesting stability in the labour market.

Data showed household demand for work under Mgnrega fell 41.2% in August to 1.58 crore against 2.70 crore in August 2021-22, while individual demand fell by 40% to 1.90 crore as against 3.17 crore in last August.

This is much closer to the pre-pandemic level when household and individual demand for work stood at 1.45 crore and 1.82 crore in 2019-20.


Month-on-month work demand under Mgnrega was the lowest in August in FY23 with household demand at 2.32 crore in April, 3.07 crore in May, 3.17 crore in June and 2.04 crore in July. It declined by 22.5% in August compared to July.

Individual demand also fell in August to its lowest as 3.28 crore individuals demanded work in April, 4.35 crore in May, 4.32 crore in June and 2.52 crore in July. August witnessed a decline of 24.6% against last month.

However, despite the month-on-month decline in demand and the stability in the labour market, the Centre may have to provide additional allocation of about ₹15,000 crore for Mgnrega when it presents the revised budget estimates.

This is primarily because of high dependence on the scheme for livelihood and rise in Mgnrega wages year after year. The average cost per person per day under Mgnrega stood at ₹235.28 in 2019-20, ₹266.19 in 2020-21 and ₹289.36 in 2021-22.