Many of the population in the rural areas is composed of manual labourers.
In the above sentence, 'many' is the wrong word in this case. Could anyone please give the correction to the error?
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Probably the simplest possible correction is:
Much of the population in the rural areas is composed of manual laborers.
"Much" and "many" have essentially the same meaning, but differ in usage. "Many" is used with countable nouns, and "much" is used for uncountable nouns. For example, one might say "much water", but "many drops of water".
In this case, while "manual laborers" are countable, the word being modified by "much" or "many" is "population", which is treated as an uncountable noun.