Under Rural Employment Guarantee Scheme VB-G RAM-G (earlier MGNREGA) a sharp increase of 25% in job demand has been recorded in the month of September. Ahead of the festive season, 1.56 crore (15.6 million) families in rural India have applied for employment under the scheme. Due to depression of monsoons and temporary slowdown in agricultural activities, the demand for unskilled labor in the rural economy has suddenly increased.

This sharp surge in employment demand reflects the economic pressure in rural areas and the crisis in the unorganized sector. Work demand by 1.56 crore households in September makes it clear that the rural population is still largely dependent on government welfare schemes and social safety nets to support their income. In the coming months, economists and policymakers will be keeping a close eye on the state of the rural labor market, along with demand for rabi crop sowing and festivals.

25 percent increase in employment

According to preliminary data from the Ministry of Rural Development, the government’s newly launched rural employment scheme, ‘Vikas Bharat – Guarantee for Employment and Livelihood Mission (Rural)’ (VB-G RAM G), increased by more than a quarter in September compared to August.

The number of households seeking work rose to 15.6 million in September from 12.5 million in August. In July, 10.1 million families sought work under the scheme, which was launched in the same month under the VB-G RAM G Act, 2025.

The number of people seeking employment also increased, rising to 18.8 million in September from 15.4 million in August. Under VB-G RAM G, the guaranteed annual employment has been increased from 100 days to 125 days, while the minimum daily wage has been fixed at Rs 300.