‘I don’t have a paycheck. It happened so fast.’ How coronavirus hit SLO County workers
Jackie Yeager was the director of catering at Embassy Suites in San Luis Obispo when the the coronavirus first hit the United States. Within weeks, she was unemployed.
She has a mortgage on a house to pay, a teenage daughter and a small savings. Depending on when the stimulus check arrives and unemployment kicks in, she might not be able to cover all her bills in May.
“Even if help does come in, we’re still on a super tight budget. We’re stretching our resources,” Yeager told The Tribune in a phone interview in early April.
“It’s terrifying. At least I have a little bit of savings, but living here is expensive. Most people don’t have six to eight months of savings,” she said.
Workers in nearly every industry in San Luis Obispo County lost significant income in the last few weeks, after most non-essential businesses shut down across California by order to prevent the spread of COVID-19.
The economic hit to the labor force is not yet measurable, but it’s already felt.
Seventy companies reported layoffs, furloughs and/or closures to the county Workforce Development Board from March 17 through April 8, affecting 2,392 workers.
In addition, 2,600 part-time student and intermittent workers were furloughed from the Cal Poly Corp., bringing the total number of workers known to have lost income to 4,992. There are likely many more.
Tapping savings accounts and liquidizing assets won’t cover living expenses very long for many households. Slow wage growth coupled with high living expenses left residents cash poor.
An analysis of financial health by Washington, D.C.-based nonprofit Prosperity Now estimates around 16% of households in the county have zero or negative net worth, and 32% don’t have sufficient assets to live above the poverty level for three months without income.
Even before the coronavirus crisis, thousands of residents struggled to afford to live in the place they call home in San Luis Obispo County.
About a third of renters in the county, for example, spend between 30% and 49% of their income on rent, according to 2018 Census Data. About 27% spend more than half their income on rent.
A large portion of county workers are in the hospitality industry, supported by tourists who come for the wineries, beaches and recreation, or to watch their Cal Poly student graduate.
In March, events were canceled, businesses sent workers home, and tourists were asked not to visit. The shift for workers was sudden.
“I don’t have a paycheck. It happened so fast. It was crazy fast,” Yeager said.
‘It made my head spin’
Early warning signs of the economic affect on the hotel industry came in the form of calls to cancel or postpone events because of COVID-19, Yeager said, but the speed of the shift was jarring.
“It started as a trickle and then it was so many. Then, Cal Poly said ‘no Open House and no graduation.’ That’s a huge revenue for the hotel industry,” she said.
The next week, on March 18, Yeager saw her colleague packing up her stuff after she’d been let go. She knew she was next.
“It made my head spin,” Yeager said.
She doesn’t blame Embassy Suites for laying her off, saying, “I don’t know what else they could have done.” The company said she can reapply for the position once it’s open again.
Now, she’s focused on the next step: Applying for new jobs. She’s sent in applications for several positions, but doesn’t know if any are actually hiring. They might not have removed the job listing from LinkedIn after the shelter order, she said.
She wants to stay in San Luis Obispo. Her parents are here, her daughter’s father is here, her friends are here.
“As a single parent and living in this county, its very expensive and its hard to come by a good-paying job,” Yeager said.
She’s been unemployed before and found work then helping others develop skills to re-enter the workforce. That’s a valuable skill set to have as thousands of residents scramble to amass a living.
“I’m open to all of it. Workforce development? I love that kind of work,” Yeager said.
Both parents lose income in Oceano family
Both Maria Patiño and her husband, Ruben Pille, lost income in the last few weeks. He still has some hours with a carpet-cleaning business and plans to file for unemployment for reduced hours. She can’t because she is usually paid in cash.
“I clean houses and usually I would go four days a week to help one person who is elderly, go to their house and do errands and all of that. Now, they’ve canceled everything,” Patiño told The Tribune. Her quotes have been translated from Spanish.
“The people whose houses I go and clean are seniors, and when they were given the notice of COVID-19, they said it was better if we canceled everything until later on.”
Patiño also volunteers with Promotores Collaborative, which provides resource materials and support for a healthier Hispanic population.
These days she stays inside taking care of her children along with her nieces and nephews because their mom works in a field all day. She’s been trying to learn with them while they do homework.
“Right now, I’m just staying inside with my kids because I have asthma, so I barely leave the house and the kids don’t leave either. The only one that leaves the house is my husband for work, and if we need groceries, he is the only one that goes because we know with my asthma it’s a problem I have to watch,” she said.
Their landlord was going to raise the rent, but said he would respect the current price for now.
“They asked us how our work situation was, and that’s when my husband told him he lost some hours and they said they will see what happens between now and May. But we will see how it goes,” Patiño said.
“I guess we can make it through April,” her husband added. “We don’t know what’s going to happen after May. This is what we are concerned about.”
SLO clerk unsure how she’ll make rent
Allison Warren, 22, was working two jobs for a total of 60 to 70 hours a week until the hotel where she worked stopped scheduling her for shifts.
When The Tribune first spoke with her in early April, she was working about 22 hours a week at a grocery store, where she’s paid $15.25 an hour. She said she can’t afford fewer than 35 hours of work a week.
“I don’t know how I’m going to make it,” Warren told The Tribune in a phone interview. “That stimulus, I know that’s going to help a little bit.”
Her hours were bumped up to 37.5 in the second week of April, but that’s tenuous.
“Uncertainty lies with that though, as they could change it back anytime they want or need to. But for now, I am grateful,” she said in a text.
Rent isn’t an immediate emergency. She’s one of four people in a three-bedroom apartment and shares the master bedroom with her boyfriend. All three housemates still work full time.
“We don’t have a big problem. It’s just about getting my share, which I know is a lot better than other (people’s situation),” she said.
Her boyfriend offered to cover next month’s rent, about $500. Her other major bills include utilities, internet, a few credit cards, car insurance, an Invisalign payment and a car payment. That adds up to more than $750 on top of rent.
“I want to become a nurse, and I’m not getting anywhere close now. Until then, I won’t have money to pay anyone back,” she said, adding that she can’t turn to her parents for assistance.
“It’s frustrating to be an adult and not be able to pay for myself.”
She was reluctant at first to file for unemployment. She was unsure if she qualified and she was nervous about adding to a nationwide spike in need.
“I don’t want to partake in that if I don’t have to. I didn’t want to take the money if I didn’t need it,” Warren said. “I will try at this point, because I need it.”
Morro Bay business owner gets a break from landlord
Susan Stewart was supporting herself and saving for a down payment to buy a house with the income from her shop, Beads by the Bay in Morro Bay. Her income dropped to zero.
“When you own a business, you have two sets of bills: rent in two places, utilities in two places. It’s a big hit,” Stewart told The Tribune. “I am single so I’m doing it on my own.”
She doesn’t have to worry about rent at the business for a couple months, at least. Her landlord owns buildings that house multiple businesses downtown and decided to give all tenants two months free rent.
“It was so generous and thoughtful,” Stewart said. “I know a few owners doing that. There’s so many good people out there thinking of their tenants.”
“If the landlords were not so generous and the businesses have to shut down and move out, nobody is going to move in anytime soon. Right now, it’s a hunker down. I think kindness can go a long way.”
She says she can get by for six to eight months living on the money she stashed away to buy a home. Rent at the house she’s been in for 29 years is $1,500 a month.
“I’m one of the fortunate people. I save money,” she said.
The Morro Bay Chamber of Commerce has been “really, really helpful” in identifying and sharing resources. Stewart filed for unemployment, applied for an FDA disaster relief loan, and read something in her liability insurance about viruses. At this point, she said, “You throw it all out there and see what comes back.”
Businesses in Morro Bay are used to the ebb and flow of revenue. Stewart’s profits are driven by tourists and locals, she said. Still, looking forward, it’s going to be hard for people to catch up, she said.
“All coastal towns are going to be fighting for the same dollar when things open up. Some of it, we’re going to have to diversify. It’s a lot focused on tourism, we’re going to have to change that up a bit,” she said.
This story was originally published April 13, 2020 at 5:00 AM.
