Alberta Recovery Plan Requires More Support for All Albertans
By Marokh Yousifshahi, CCVO Policy Analyst
On June 29, 2020, the Government of Alberta released their Alberta Recovery Plan to drive economic activity within the province in response to the devastating impacts of COVID-19. On August 27, 2020, the province released its first-quarter fiscal update that projects a historical deficit of $24.2 billion and focuses on spending, not revenue. However, the expenditure does not prioritize vulnerable populations, nonprofits that support these communities – and it does not account for a potential second wave.
The Recovery Plan was developed with input from Alberta’s Economic Recovery Council – which was criticized for its lack of diverse gender composition. This plan was released when all Albertans were looking for support and bold moves from their government concerning high unemployment rates, lack of childcare availability, and economic hardships; however, the Recovery Plan provides Albertans with many promises and announcements made before the onset of the pandemic. Although the Recovery Plan provides assistance and support for some industries, not all sectors and Albertans are given the same attention.
The Recovery Plan has been criticized in that it doubles down on supply-side economics by reducing Alberta’s corporate tax rate to eight percent, and that it does not provide details about how the strategy would affect revenues, expenditures and debt. Although there are some positives we can draw from the Recovery Plan, it does not have a concrete plan for women, racialized people, or the nonprofit sector. Additionally, this plan does not utilize an equitable approach that addresses the gendered division of COVID-19 impacts and it does not represent marginalized groups and communities across Alberta. This impact is significant within the nonprofit sector, which employs many women and people from marginalized groups. More than a month later, as details of the plan continue to be released, no announcements have been made concerning what the government intends to do to support these groups.
Without an approach to addressing women and marginalized groups in the economic recovery process, Alberta's economic activity is at risk.
Support for the cultural sector
The Recovery Plan announced that it would create a Cultural Event Relaunch Program to support music, performing arts and landmark cultural events that have been hard-hit by the public health measures. This program is intended to provide support for events to address the physical distancing requirements. Details of this program have yet to be released. The plan also highlights the support already provided by the government in April, such as funding and support for homeless shelters, women’s shelters, and food banks.
Promises made previously by the provincial government were also highlighted in the Recovery Plan but labelled as new. For example, the Alberta Film Tax Credit was announced as part of the Alberta Budget 2019-20 and 2020-21, along with the previously announced $40 million-project for the Glenbow Museum. Both initiatives are expected to create more jobs for the province.
*Other includes Advanced Ed.; Agric. & Forestry; Culture, Multiculturalism & Status of Women; Education; Seniors & Housing; Transportation; Treas. Bd. & Finance.
Source: Government of Albert 2020-21 First Quarter Fiscal Update and Economic Statement
Alberta’s first quarter fiscal update provided us with a snapshot of ministries that have received government support since the onset of the pandemic in March, and spending for recovery efforts. The government provided $60 million in Social Services emergency funding to support homeless shelters and an additional $48 million in recovery efforts. However, there are plans to reduce another $12 million from the already reduced Budget 2020-21 for the Ministry of Culture, Multiculturalism and Status of Women, which supports various nonprofits, including community and voluntary support services, arts and culture industries, and sports and recreation.
Women left out of Recovery Plan
Since the onset of the pandemic, parents – particularly women – have been burdened with the responsibility of homeschooling and parenting, all while working from home. Although the impact has been greater for single parents, women are often faced with choosing between their employment and their children. Given that COVID-19 has impacted childcare space and affordability, women are now more likely to leave the workforce, which will be devastating for Alberta's economic activity. Women’s employment has been recovering more slowly than men’s, which RBC suggests will most likely have a more significant impact on the hit to the GDP. July’s labour force numbers show that women continue to be slower to re-enter the labour market with female demographics of ages 20-24 and over 55 being the most impacted. The government should prioritize these barriers that have been exacerbated by the pandemic.
The Ontario Nonprofit Network found that there is a feminization of the sector that is a result of various factors. These factors include nonprofits and charities are women-majority (80% of nonprofit and charity workers in Ontario are women). Recently, an Imagine Canada survey showed that a third of charities have laid off staff due to the pandemic, with more planning to do so. As a result, the Canadian Women’s Foundation states that “the precariousness of the organization has an effect on the capacity of women to access permanent decent work and thus increase economic security for themselves, their families, and their community.”[1] They also state that funds and support should be distributed with a strong gender analysis throughout all levels of government provincially and federally. The Recovery Plan includes support for sectors mainly dominated by men and does not acknowledge those sectors primarily dominated by women. For example, the province promises $10 billion in infrastructure funding – an industry already underrepresenting women and benefiting men more than women. Additionally, the job losses mentioned in the plan mainly focus on the oil and gas sector industry and do not acknowledge losses in sectors dominated by women.
Before the Recovery Plan was released, the YWCA compiled six recommendations, including a Childcare Task Force that ensures a robust childcare system that is accessible, affordable, and safe. The recommendations thoroughly represented women and gender diverse people to ensure equal representation in Alberta’s economic recovery and long-term prosperity. Although the Recovery Plan does mention that it will provide childcare options for families, details on what it intends to do and incentives for women to return to work have not been provided.
Without an inclusive plan for recovery, the province will not have a healthy and robust recovery. The government must have gendered policy issues considered in their recovery plans as job losses have disproportionately affected women who work in roles that have been hit by isolation measures. Women also make up a majority of Canada’s minimum-wage workers and part-time workers. RBC reports that women’s participation in the workforce has dropped by 55% – its lowest level since the 1980’s – threatening decades of labour force gains. A childcare strategy for the province will be essential in returning women to the workforce and decreasing unemployment.
Racialized people left out of Recovery Plan
The most recent labour force survey by Statistics Canada asked respondents for the first time if they identified as racialized. The results of the survey indicated a disproportionate impact of the pandemic on several groups. When unadjusted for seasonality, the national unemployment rate between the ages of 15 to 69 was 11.3% in July. For individuals who did not identify as members of a visible minority or as Aboriginal, the unemployment rate was 9.3%. However, the unemployment rate amongst racialized groups was far higher than these averages, including South Asian (17.8%), Arab (17.3%) and Black (16.8%) Canadians. Racialized populations are often overrepresented in industries that help our communities get through the pandemic, such as the healthcare sector, accommodations, and food services. Individuals representing such sectors have seen a 50% drop in employment more than in any other industry. This overrepresentation may be attributable to higher unemployment rates among these groups due to closures resulting from the pandemic.
It is still unclear how the province plans to address groups most impacted by the pandemic. With the recently passed Bill 32, the Restoring Balance in Alberta’s Workplaces Act, many women and newcomers will be disproportionately affected, as it provides corporations and businesses with more authority in regards to overtime pay and vacation pay, amongst other changes.
#ABCommunityAdvantage
No single economic recovery plan will be enough. Communities must collaboratively negotiate the recovery process – future prosperity will be built through strategies that involve government, the nonprofit sector and the private sector. The nonprofit sector has been the backbone of the province in responding to the pandemic and in protecting the stability and health of our communities. It is time to recognize a new Alberta Community Advantage – to build and strengthen the Alberta we all love.
Every part of society has a major role to play during emergency and recovery: government, businesses, nonprofit and charitable organizations, funders, communities, and individuals. To address inequities and to have a Recovery Plan that includes all Albertans, there will be a crucial need for engagement and consultation with multiple sectors. With that in mind, CCVO has drafted a start to some recommendations for the private sector, the provincial government, and for funders to get started on a multi-sectoral community prosperity strategy. CCVO will also be engaging with multiple sectors to better understand how all sectors can collaborate to build a community prosperity strategy.
CCVO is creating the space for conversations about what makes a community great, things like public art, green spaces, or the feeling of belonging – and how these community strengths play a role in our economic recovery. Our goal is to have a list of recommendations that have broad approval from many stakeholders so that we can leverage these community advantages in a meaningful way and make sure that they are part of the province’s economic Recovery Plan.
We encourage your organization to take a moment to provide feedback on the recommendations we have created for the provincial government, private sector, funders, and other stakeholders to contribute to a community prosperity strategy and leverage our #ABCommunityAdvantage.
[1] The Canadian Women’s Foundation. (2020). Resetting Normal: Funding A Thriving Women’s Sector.