Thirty-three employees in Georgetown, P.E.I., are out of work following a decision by forestry conglomerate J.D. Irving Ltd. to shut downthe province's largestlumber yardindefinitely.

The North American lumber industry has been going through some trying times, and theclosure of the Georgetown Timber plant in eastern P.E.I. is unavoidable, J.D. Irving spokeswoman Mary Keith told CBC News Thursday.

"[There's a] drop in market demand as a result of the slow down in the U.S. housing market. We're also challenged with a record high Canadian dollar, and also a slump in market prices," Keith said.

"All of those things combined, unfortunately, have had an impact. And when you consider that roughly 85 to 90 per cent of the wood from Georgetown is bound for the U.S. market, it's a challenging situation."

Any of these factors on their own would have caused problems for the lumber yard, Keith said. Together, they could not be overcome.

Woodstill in the yard will be processed. The last day of operation will be Nov. 2.

The situation at Georgetown Timber will be reviewed next spring or summer. Some employees may be able to secure jobs at other operations within Irving, Keith said.