The COVID-19 outbreak has mostly harmed micro, small, and medium-sized enterprises (MSMEs). This paper aims to assess the impact of the COVID-19 outbreak on these businesses related to job losses in India and provide a better understanding of the possibilities for employment recovery in MSME. The study looks at telework use, job loss, labour supply interruptions, and recovery progress. Massive temporary layoffs caused a rise in unemployment, and subsequent recalls of jobless employees caused a quick but partial rebound. We have used an exploratory approach, encompassing policy documents, research papers and reports in this sector, by thoroughly examining the existing literature. The finding indicates that the pandemic has increased informality and reduced wages for most employees, causing a rise in poverty. Women and younger employees have been hit the most. Families have adapted by eating less, borrowing, and selling assets. While government assistance has prevented extreme hardship, it has failed to reach some of the neediest employees and families. We conclude that more government assistance is critically required now to both compensate for losses from the first year and prepare for the third wave.

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Keywords: COVID-19, Lockdown, Employment, MSMEs, Indian Crisis, Policy, Recommendations, Business Survival and MSMEs Workforce.