“COVID-19, Employment, and MSMEs: Perception Analysis of Stakeholders in Haryana”

Abstract

The COVID-19 pandemic created unprecedented disruptions for Micro, Small, and Medium Enterprises (MSMEs), which are critical contributors to employment and economic growth in Haryana. Supply chain interruptions, reverse labor migration, and fluctuating demand significantly affected workforce stability and enterprise sustainability. Concurrently, the implementation of the Goods and Services Tax (GST) imposed additional compliance and financial pressures on small businesses, further challenging operational continuity. This study investigates stakeholder perceptions of the dual impact of COVID-19 and GST on employment within Haryana’s MSME sector. Primary data were collected from 100 owners and managers across diverse industries through a structured questionnaire, with responses analyzed using descriptive statistics and one-way ANOVA. Findings indicate that reduced working hours, demand fluctuations, and temporary layoffs were perceived as the most significant employment impacts, while permanent job losses were less widespread. Results also reveal demographic variations, with younger stakeholders reporting heightened concerns over layoffs and restrictions. The study highlights the heterogeneous nature of challenges across enterprises, influenced by sectoral and demographic factors. Insights emphasize the need for targeted policy interventions, enhanced awareness of government schemes, and flexible workforce strategies to strengthen MSME resilience and ensure sustainable employment in the post-pandemic recovery phase.