India's urban middle class is experiencing economic pressure due to a contraction in wages, which is a first since the pandemic.

Data from Elara Securities Inc. shows that inflation-adjusted employment costs for listed non-financial companies decreased by 0.5% in the third quarter compared to the same period last year. This decline in real wages is leading to a decrease in consumer spending and a decline in corporate profits, which is impacting the overall pace of the economy.

The situation highlights the challenges faced by the urban workforce as their purchasing power is affected by rising costs and stagnant wages.