Why did the demand for employment in MNREGA decrease? What does the latest RBI report say?

Reserve Bank of India has released new data related to MNREGA. According to these figures, the number of people looking for employment in MNREGA has decreased. Which is being seen as a positive change from the point of view of villages. The demand for work provided under MNREGA has decreased in the country.

This information has been given in a recent report of the Reserve Bank of India. According to the report, in most of the months of the current financial year (2024-25), the demand for work under the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) has been much lower than before.

Annual growth of 3.9% due to harvesting of Rabi crop

According to the RBI report, the total number of families seeking work under MNREGA during most of the months from April to November was much less than in the post-Corona years. The scheme provides guaranteed wage employment to those families for at least 100 days in a year. RBI noted that MNREGA work demand increased by 8.2 per cent month-on-month (MoM) and 3.9 per cent year-on-year (YoY) in November 2024 due to the completion of Rabi sowing. The total demand from April to November 2024 has been lower than in the post-Corona years.

Demand for work fell 7.5% in October

This report of RBI shows the improvement in employment situation in the rural economy. Especially in the sector related to agriculture, a period of positive change is being seen. The report also said that the demand for MNREGA work has declined by 7.5 percent in October 2024. This decline was due to an increase in employment in the agriculture sector during the Kharif crop season. This decline in employment is due to the widespread improvement in rural employment. Which in a way shows positivity.

Employment generation has been increasing for nine consecutive months

The total number of workers registered under MNREGA as of 29 November 2024 was 25.17 crore, which is slightly less than the 25.68 crore workers registered in the financial year 2023-24. The report also said that employment in the organized manufacturing sector has increased continuously. The Procurement Managers Index (PMI) shows that job creation in the sector has been increasing for nine consecutive months. Employment in the services sector has increased, growing at the fastest pace since the inception of the employment generation survey.