New Delhi, April 21 -- After months of rising demand, the number of people that sought work under the government's rural job guarantee scheme dipped to a four-month low in March, indicating a potential shift in labour market conditions.

Government data showed that people from 186.4 million households sought work under the under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in March. That was a 14.5% drop from 217.9 million households in February. The numbers were 224.9 million in January and 215.7 million in December.

The moderation in demand likely reflects improving rural job opportunities outside the scheme and seasonal shifts in employment patterns. MGNREGS demand often acts as a barometer of rural distress...