Growing reliance on MGNREGA in rural areas, elevated youth unemployment in urban areas, are worrying signals

Context: Employment scenario in India remains poor. This can be gauged by the data on work demanded and availed by households under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).

Worrying MGNREGS data

MGNREGS data: Number of households seeking employment under MGNREGS has increased gradually.

What does the MGNREGS data indicate?

MGNREGS data points to few possibilities:

First, that not enough productive jobs are being created in rural areas — 21 states and Union territories observed an increase in households availing work under the scheme.

Second, that the jobs that are being created aren’t remunerative enough, requiring households to supplement their incomes by working under the scheme. After all, inflation pinches the poor more.

Third, post the pandemic, households are trying to rebuild their emergency buffers.

What are some other indicators of lack of employment generation in India?

Protests against the Indian railways recruitment process, and against the government’s Agnipath scheme for recruitment for the armed forces,

Pressures from various castes to expand the scope of reservation

Attempts by state governments to reserve jobs for locals.

All of these factors reflect the failure, under the watch of successive governments, to absorb the millions of low and semi-skilled workers, who are entering the labour force each year, and those who are stuck in the low productivity agricultural sector.

Source: This post is based on the article “Growing reliance on MGNREGA in rural areas, elevated youth unemployment in urban areas, are worrying signals” published in The Indian Express on 1st Jul 22.