New Delhi: Only 15.6 million people sought work under the government’s flagship rural job guarantee scheme in March, marking the lowest level for the month in at least five years, according to data from the ministry of rural development.
Participation declined from 21.9 million people in February, the data showed, indicating lower demand at the end of the financial year, which coincides with the harvest season when farm work increases and workers shift away from seeking jobs under the scheme.
Participation under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme, now renamed Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission Gramin (VB-G RAM G), is often used as an indicator of rural labour demand and economic conditions.
The March figure compares with 23.6 million in March 2025, 23.2 million in March 2024, 28.3 million in March 2023 and 31.5 million in March 2022, indicating a steady decline in participation levels in recent years.
The scheme guarantees up to 100 days of paid unskilled work to any adult member of a rural household who demands it. Following the changes in the scheme in December, the increases the guarantee to 125 days. Projects taken up under the scheme include those related to digging canals for irrigation, construction of anganwadi centres, plantation drives, water supply and sanitation.
Economists view the change in demand as a shift of workers towards farm activities as well as increased in both rural and urban manufacturing sectors. They say the decline in demand reflects shifting labour dynamics across sectors.
“This is largely due to a shift of workers towards farm activities, supported by better monsoon conditions and increased government intervention in rural infrastructure, which has created more employment opportunities,” said professor N.R. Bhanumurthy, director of the Madras School of Economics.
Back to the cities
During Covid, as workers in cities returned to their villages, there was a surge in demand for jobs under the scheme. Now, with construction and services activities picking up in urban centres, migration appears to be reversing again, he said.
“The pickup in labour-intensive manufacturing sectors is likely contributing to a shift in employment patterns, drawing workers away from rural job schemes and into industrial activity,” said Rakesh Arrawatia, professor at the Institute of Rural Management Anand and dean of the School of Cooperative Banking and Finance.
According to Ashish Kumar Singh, president of the Citizen Forum, a civil rights group in Bihar, the moderating trend does not necessarily reflect improved employment conditions.
“In many areas, workers are either not getting timely work or wages, which discourages participation. The scheme continues to remain a critical safety net, especially during periods of uncertainty,” he said.
The ministry of rural development has been allocated ₹1.97 trillion in FY27, which is 4% higher than the revised budget estimate for FY26. The Department of Rural Development has been allocated ₹1.94 trillion, also 4% higher than the revised estimates for FY26.