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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM63812
Volume:
10 |
5 |
May 2026
Pages:
1-15
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Economics
Central University of South Bihar (CUSB),Gaya, Bihar, India
Research Scholar -Department of Economics
Patliputra University,Bihar, India
This paper analyzes how the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) impacts rural-urban migration and employment dynamics in Bihar. This is interesting to study, as Bihar's state has a large rural population, a renowned agrarian economy, and a heavy reliance on casual labour and prolonged migration to urban and out-of-state locations. This study collates information obtained from the official MGNREGA Management Information System, Ministry of Rural Development reports, PLFS, Bihar Economic Survey, NITI Aayog, MoSPI migration data, PIB releases, and selected research publications. Results from MGNREGA data show how significant MGNREGA is to the rural economy in Bihar to date. Official MIS figures show that 48.18-51.47 lakh rural households received work annually in the completed years from FY 2023-24 to FY 2025-26 (Ministry of Rural Development, 2026a). MGNREGA has aided in the inclusion of women to the economy, positivity during the lean agricultural period, and wage support. Despite these, it shows the incapability of MGNREGA toward rural to urban migration. Rural to urban migration has close ties to the economy through the upper bound in manufacturing and regional price differentials, and the informal economy and construction. The paper finds that MGNREGA should be understood not as an outright alternative to migration-led livelihood strategies, but as a partial employment guarantee. The scheme has the potential to reduce distress migration and strengthen the rural bargaining power, and with timely payments, adequate labour budgets and a convergence with rural livelihood and skilling schemes, it can enhance local asset creation.
KEYWORDS
MGNREGA directly impacts Bihar's rural labour market. Due to weak labour demand, it provides wage employment to rural households and acts as a support system through income from the fixed demand and weakened demand, and also protects the rural workforce. In the recent period analyzed in this paper, official MIS data show that Bihar provided MGNREGA work to 48.18-51.47 lakh households annually in the latest completed years, while FY 2026-27 shows 1.99 lakh households as current-year partial data. The average days of employment remained below the 100-day statutory ceiling (Ministry of Rural Development, 2026a). This corrected statement uses the latest official lakh-based Bihar MIS data used in Table 2. The last-mile challenges of the program are attributable to the number of days of employment. Currently, it provides employment for fewer than 100 days, and therefore it cannot be viewed as a substitute income for rural households. The scheme provides relief to rural households through income subsistence, yet it does not positively impact the migration stream. This is the key migration-limiting factor, despite MGNREGA's operation. Where there are relative MGNREGA and rural-urban connections, there is some protection. MGNREGA lowers distress migrants since it provides near community employment during non-agricultural seasons. It provides protection against bonded labour, income for women, and older community members. Yet, it does not impact the positive migration stream from households as a result of improved income subsistence. Bihar's rural employment strategy emphasizes the dominant role of MGNREGA. It involves timely and adequate wage payments, proper work planning, increased employment in districts with high migration, enhanced women's participation, and effective synergy with agriculture, water and livelihood development and skill development. With these, MGNREGA can build rural resilience, lower distress migration, and support a more equitable rural labour market.
Datta, A. (2020). Circular migration and precarity: Perspectives from rural Bihar. The Indian Journal of Labour Economics, 63(4), 1143-1163. https://doi.org/10.1007/s41027-020-00290-x Government of Bihar, Finance Department. (2025). Bihar Economic Survey 2024-25. Government of Bihar. https://state.bihar.gov.in/finance/ Institute for What Works to Advance Gender Equality. (2026). Trend in female labour force participation in Bihar: Fact sheet. IWWAGE. International Labour Organization. (2024). World employment and social outlook: Trends 2024. International Labour Office. LibTech India. (2025). Insights and trends, April-September 2025: MGNREGA tracker. LibTech India. Manjula, R. (2024). Do people participate in the decentralised planning of MGNREGS works? Evidence from Karnataka. Journal of Social and Economic Development. https://doi.org/10.1007/s40847-024-00396-8 Marchang, R. (2021). Migration, reverse migration, employment and unemployment crises during the COVID-19 pandemic in India. Institute for Social and Economic Change Working Paper No. 531. Ministry of Rural Development. (2024). Annual Master Circular 2024-25: Mahatma Gandhi National Rural Employment Guarantee Act. Government of India. Ministry of Rural Development. (2025a). State Performance Report 2024-25. Government of India. https://www.dord.gov.in/static/uploads/2025/09/d81193f25cde78b36f36b559ffabbb18.pdf Ministry of Rural Development. (2025b). Demand, employment and works under Mahatma Gandhi NREGA: Official MIS reports. Government of India. https://nrega.nic.in/ Ministry of Rural Development. (2026a). Mahatma Gandhi NREGA MIS: State at a glance - Bihar. Government of India. Retrieved May 11, 2026, from https://nregastrep.nic.in/netnrega/homestciti.aspx?lflag=eng&state_code=05&state_name=BIHAR Ministry of Rural Development. (2026b). MGNREGA dashboard: Physical and financial progress as on 04 May 2026. Government of India. https://nrega.nic.in/ Ministry of Statistics and Programme Implementation. (2022). Migration in India 2020-21. National Statistical Office, Government of India. https://www.mospi.gov.in/sites/default/files/publication_reports/Migration%20in%20India%20RL16082023.pdf Ministry of Statistics and Programme Implementation. (2024). Periodic Labour Force Survey annual report 2023-24. National Statistical Office, Government of India. https://www.mospi.gov.in/sites/default/files/publication_reports/AnnualReport_PLFS2023-24L2.pdf Ministry of Statistics and Programme Implementation. (2025). Women and men in India 2024: Selected indicators and data. Government of India.
Publication Date
5/22/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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