`Gut-wrenching feeling': Layoffs continue as restrictions tighten

Service, recreation, retail industries facing closures and reduced capacity

Workers in Edmonton's food and entertainment industries are bracing for layoffs as the province's latest public health restrictions came into effect Sunday.

To curb the spread of COVID-19, all bars and restaurants must close for dine-in services. Entertainment and recreation facilities, including casinos, must close. Retail stores are newly restricted to 15 per cent of their total capacity, while all outdoor and indoor social gatherings continue to be banned.

Connie Holczer, food and beverage manager at Gateway Lanes, said 100 employees at the south Edmonton bowling alley will be officially laid off as of Monday.

“It's kind of like a gut-wrenching feeling,” said Holczer.

“When the restrictions were first rolled out in mid-november, business fell down, like 90 per cent. When they announced that we would have to close it was even worse.”

She said the business was able to relaunch earlier this year after previous restrictions were removed, but she worries about what the business will look like in four weeks. The latest round of layoffs comes after a year of economic hardships for Alberta.

Economist Trevor Tombe said there are 150,000 fewer jobs in the province than before the pandemic began in March.

At the height of the first wave, there were 350,000 fewer jobs.

He said there are also 120,000 Albertans who are employed but worked zero hours in November, about twice as many people than were in that situation before the pandemic.

“We're about five per cent below where we were, which is the worst of any province,” said Tombe, adding that's not surprising since the hit to Alberta's oil and gas sector came at the same time as the pandemic.

Tombe said it is impossible to separate the economy from the pandemic as COVID-19 has inherently changed the way people shop and behave.

“Regardless of what public health restrictions are in place, people are not going to be behaving in a way that they did prior to COVID,” said Tombe.

“So the most important thing for the government to address the economic challenges is to overcome the public health crisis.”

He said the No. 1 priority for the economy should be rolling out newly approved vaccines as quickly as possible.

PROVINCIAL SUPPORT

When Premier Jason Kenney announced the latest restrictions earlier this week, Jobs, Economy and Innovation Minister Doug Schweitzer said the province would be expanding the Small and Medium Enterprise Relaunch Grant as well.

Businesses in hard hit areas with less than 500 employees can apply for 15 per cent of their PRE-COVID monthly revenue, up to $20,000.

The government also lowered the threshold to be eligible for funding to businesses who experienced at minimum a 30 per cent loss, down from 40 per cent.

The government said about 15,000 more businesses would now be eligible.

Meanwhile, the federal government has introduced various support measures for people who have lost their jobs due to COVID-19.

After cancelling the Canadian Emergency Response Benefit payments, the government made temporary changes to employment insurance (EI).

Now Canadians only need 120 insured hours to qualify. EI will pay out a minimum of $500 per week before taxes.

For those not eligible for EI, the Canada Recovery Benefit provides $500 a week for 26 weeks to people who have lost employment or had their hours reduced by at least 50 per cent.

They have also created a program to assist people who are unable to work because they are sick with COVID-19.

Anyone who has contracted the virus and cannot work for at least 50 per cent of their work week, or those who can't work because they are self-isolating, are eligible to receive $500 a week for up to two weeks.

People with underlying health conditions that health practitioners believe make them more susceptible to COVID-19 are also eligible for the federal sickness payment program.

An additional program, the Canada Recovery Caregiving Benefit, provides $500 a week for up to 26 weeks per household.

That's available for workers who must stay home to take care of someone under the age of 12 because their school or daycare is closed due to COVID-19.

People who have to care for a family member who is sick or in quarantine or is at high-risk from COVID-19 are also eligible.

The most important thing ... to address the economic challenges is to overcome the public health crisis.