Reasons for increase in demand for MGNREGA

  • The high number of people seeking work under the MGNREGA is due to desperation.
  • Most of these workers have gone home and have no work hence they are seeking jobs under the scheme.
  • An analysis of the data shows there is a spike in demand for MGNREGA jobs in May-June when the sowing season for kharif crops is set into motion.
  • The data also shows that states which have seen reverse migration of workers have seen a sharp rise, most significantly in Uttar Pradesh. The total number of applications in UP was 17.4 lakh in March and 12.7 lakh in April. This jumped to 49.3 lakh until May 20.
  • The increasing demand for MGNREGA jobs only seems to confirm what many organisations have projected about unemployment.
  • According to the Centre for Monitoring Indian Economy (CMIE), rural unemployment rose from 8.49% in March 2020 to 22.67% on April 29, 2020.