The paper examines the impact of the Covid-19 pandemic on the informalization of the Indian labor market, considering both demand and supply-side elements together. Prior to the pandemic, global informal employment was declining, standing at 57.8% in 2019, but it rose to 58.0% in 2023. The study highlights the challenges of informality in India, using data from the Periodic Labour Force Survey (PLFS) from 2017–18 to 2022–23 to reflect the supply-side scenario, and quarterly employment data from the Labour Bureau’s establishment survey and ASUSE data for the demand side. The findings indicate that informal employment has grown post-pandemic, with sectors such as health, education, and IT/BPOs seeing increased informal employment, while other sectors have seen a decline in job creation. Gender-wise, the study notes a rise in the percentage of female workers in the informal sector. This paper provides a comprehensive view of how the labor market has evolved, particularly focusing on the challenges and changes brought about by the pandemic, especially in terms of gender, sectoral shifts, and employment categories in India.