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Decline in demand for MGNREGS jobs

In June, 62.06 million workers wanted work under the scheme, according to the Union rural development ministry. But in July, the total number of beneficiaries asking for work came down to 42.57 million and in August, the demand saw a further dip, to 31.44 million.

Updated on: Sep 8, 2020, 01:11:13 IST
Hindustan Times | By , New Delhi
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The government’s special job scheme for migrant workers, the reopening of some sectors of the economy, and a bumper sowing season have helped ease the pressure on the flagship job guarantee scheme, MGNREGS, in terms of providing work to millions of desperate daily wage workers in rural India.

In the first week of September, 11 million workers asked for work under the scheme. (HT file photo)
In the first week of September, 11 million workers asked for work under the scheme. (HT file photo)

While MGNREGS has already completed at least 65% of its annual target for work in the first five months, demand for the programme has steadily declined since July.

In June, 62.06 million workers wanted work under the scheme, according to the Union rural development ministry. But in July, the total number of beneficiaries asking for work came down to 42.57 million and in August, the demand saw a further dip, to 31.44 million.

In the first week of September, 11 million workers asked for work under the scheme.

Former rural development secretary Jugal Kishore Mohapatra said that the bumper kharif (monsoon crop) sowing season, return of millions of workers to the cities due to staggered re-opening of economic sectors and the Rs 50,000 crore special package for migrants have encouraged many daily wage workers to shift to relatively more lucrative jobs.

As part of the government’s special scheme for migrant workers, public works worth Rs 50,000 crore were offered to create jobs for migrant workers in 116 districts across six states. Each of the selected districts had at least 25,000 returnee migrant workers.

Expecting a surge in rural jobs, the Union government pumped in an additional Rs 40,000 crore to increase MGNREGS’ annual budget to Rs 1.05 lakh crore, the highest-ever. The government also enhanced its target to create 3 billion person days of work under MGNREGS this financial year.

The world’s largest job scheme started on a tepid note this year. But demand for work surged in both May and June with millions of migrants returning home.

As a result, 1.95 billion persondays or 65% of the annual target has already been completed.

Mohapatra believes MGNREGS demand will again rise in the coming months due to a rise in Covid cases in big cities and lack of agricultural jobs in the early winter months. “It is indeed a good sign that people have found better jobs. After all, MGNREGS is used only for distress purpose. But the rural job demand will grow in the winter.”

 
ABOUT THE AUTHOR
Saubhadra Chatterji

Saubhadra Chatterji is Deputy Political Editor at the Hindustan Times. He writes on both politics and policies.

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