According to the Centre for Monitoring the Indian Economy (CMIE), a four-member household at the bottom of the income distribution lost an average of Rs 15,700. (Just over two months of income). Several independent surveys show steep losses in income for informal sector employees, ranging from 40% to over 80%, not only during the lockdown but also in the months afterward.

As per the CMIE data, employment had nearly returned to pre-pandemic levels by the end of 2020, but incomes remained severely reduced, and around 15 million people were still unemployed. As a result, when the second wave hit, homes had not fully recovered from the first wave's shock. While the worst of the second wave's health effects have subsided, the issue of livelihoods remains pressing.