What does "that" mean here? Is it an emphasis?

Rebecca

The speaker has used "that" to emphasize the level of negativity. In this context, "that" can be understood as meaning something like "so" or "to such a degree/extent." Ex: It's hard to compete when someone's that talented. (Talented to such an extent) Ex: Your haircut's not that bad. I think it's cute. (Your haircut is not so bad)