Sharp Decline in Rural Job Scheme Participation
New Delhi has witnessed a dramatic reduction in demand for work under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) since June this year. Official statistics from the ministry of rural development indicate that the number of individuals seeking employment through this rural jobs initiative has dropped by nearly two-thirds between June and October.
The total participation in MGNREGA plummeted from approximately 35.4 million persons in June to just 12.8 million in October, representing one of the most significant mid-year declines recorded in recent times. This year's decrease appears more severe compared to the same period last year, when participation reduced from 34.2 million to 19.9 million, marking a 42% decline.
State-Wise Breakdown Shows Widespread Impact
Several states that typically account for substantial portions of total MGNREGA employment experienced particularly noticeable drops. Andhra Pradesh saw participation crash from about 5 million workers in June to slightly over 445,000 in October.
Bihar recorded a dramatic fall from 3.5 million to 518,000, while Madhya Pradesh witnessed participation shrinking from 3.5 million to 878,000 during the same timeframe. Uttar Pradesh, which had the highest number of workers earlier this year, experienced numbers declining from 3.7 million in June to approximately 1.15 million in October.
Other major states including Rajasthan, Odisha, Karnataka, and Tamil Nadu also reported significant moderation in job demand throughout the latter half of the year.
Seasonal Patterns and Economic Factors at Play
The most substantial decline occurred after July, when monsoon-related agricultural work typically absorbs much of the rural labor force, consequently reducing dependence on public employment programs. By November, nationwide participation had dropped below 5 million workers during the first eight days of the month, indicating that demand for work continued to weaken further.
Kiran Limaye, senior research fellow at deAsra Foundation, explained that "employment demand under MGNREGA usually peaks in May and June as migrant workers return home during the North Indian summer." He added that "once agricultural activity picks up with the onset of the monsoon, the demand naturally tapers off."
Limaye suggested that the steeper decline this year might indicate that urban migration is recovering to pre-COVID levels. He also noted that increased welfare spending and pre-election cash flows could be substituting for MGNREGA income in certain regions.
The government is currently reviewing the budget for the MGNREGA scheme, which has maintained an unchanged allocation of ₹86,000 crore for two consecutive years (2024-25 and 2025-26). As one of India's largest social safety nets, MGNREGA guarantees up to 100 days of paid unskilled work to any adult member of a rural household who requests it, with demand typically rising when rural incomes weaken or non-farm employment opportunities diminish.
