MGNREGA data offer scant information on demonetisation impact

Work under MGNREGA rose in Nov compared with previous months

It is difficult to conclude from employment trends in the national rural employment guarantee scheme under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNRGEA) whether after demonetisation, migrant workers moved back to rural areas and took up work under MGNREGA, as jobs in urban centres have dried up. 

Data show the “bump” in November and December is in line with seasonal trends. This seasonality, coupled with the unusual manner in which MGNREGA has been rolled out this year, makes it difficult to draw conclusions about the impact of demonetisation.

Work under MGNREGA rose in November compared with previous months as it