The COVID-19 outbreak has had severe repercussions across the economy, particularly on micro, small and medium enterprises (MSMEs) and their workforce. There is a dearth of literature on the impact of acute crises on microenterprises, and this lack of information is compounded in times of uncertainty. This background paper for the Centre for Sustainable Employment’s State of Working India Report 2021 discusses the impact of the government-mandated lockdown on employment trends in the microenterprise sector in India. The data used in the analysis was gathered through four rounds of rapid surveys conducted between May 2020 and January 2021.