Premier Ed Stelmach says Albertans can expect years of tough times ahead before the economy bounces back in the province.
The gloomy prediction comes as many analysts point to an economic recovery in Canada.
The province confirmed Tuesday that the deficit has increased by more than $2 billion since the April budget, leaving the province with a deficit of $6.9 billion.
The premier says slumping oil and natural gas prices are to blame.
Stelmach says that even if resources prices go back up, it will take up to three years before the positive effect is seen in the provincial treasury.
The government won't raise taxes and the premier isn't ruling out layoffs.
Stelmach says, however, that a hiring freeze and job losses through attrition will be utilized before any layoffs are considered.
Some Alberta employees are fearing the worst.
Bev Dick, Vice President of the United Nurses of Alberta says she's worried about a return to Klein-era cuts to health care.
She advises the province to stay calm.
"I don't think the deficit in itself is the big boogie man that the government would like us to believe. I think they are going to use this myth and backdrop to make some tremendous cuts and tremendous changes to our health system."
The provincial fiscal update will be released Wednesday.
