Demand for rural jobs rises among poor as economic growth slows

Demand for work under the central government's rural jobs scheme has seen a steady rise over the past six months, potentially reflecting broader growth challenges facing the Indian economy and underscoring the vulnerabilities of millions of rural households.

- Rhik Kundu

According to the latest government data, the number of people who demanded work under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) reached 26.6 million in February—the second-highest monthly figure for the ongoing fiscal year—after peaking at 27.1 million in January.

Interestingly, this surge in demand for rural jobs comes after signs of rural consumption recovery during the first two quarters of the current financial year, suggesting that demand momentum could be weakening and vulnerabilities building up in the rural regions.