Fotografo de Bodas, Santiago

January 31, 2009

I learned an interesting tidbit of information today. As you know, we were previously worried that S. was going to lose his job working in construction here in Chile. And then, as I vlogged about, he did not!

But, things are still precarious on the work front. His company didn’t have any new contracts coming in, until recently that is. This week they found out that the project they’re working on at the airport is being expanded. They’ll now have work out at Santiago Arturo Merino Benitez International Airport until 2013, thanks to the government.

Unemployment hasn’t yet hit dire straights the way it has in the U.S. But, the government of Chile feels it coming on. So they are bumping up projects that originally weren’t scheduled for completion so soon, because they want to try and keep unemployment down.

However, in the private sector, things aren’t so bright. Cencosud (who also owns Jumbo, Easy and Almecenes Paris, amongst other business ventures) halted construction on the Costanera Center, which would have been the tallest building all of South America, and the second tallest in the entire Southern Hemisphere.

People keep telling me that the recession hasn’t hit Chile. Nobody seems too worried. But, I have this strange sense of calm before a storm. Chile has had a great economic run, but just like the U.S. they’re not impervious to crisis either.

A few months ago I wasn’t feeling the recession at all. I asked readers about it and most comments said they were fine as well. Now I know that one good blog friend’s husband has been laid off, my own blogs are cutting back, and several people I’m close with are job hunting with no success. So let me ask again — are you feeling the recession now?

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We’re getting creative. Why not apply for another part time job and work two I asked Oscar today? I’m trying to find a nanny gig this summer.

Luckily, things have kind of stabilized in Austin. Whole Foods and IBM made some cuts and it seems almost impossible to land a corporate job right now. But there are tons of small business and restaurants opening up and today in fact I applied to be a barista in a new coffee and gelato place. I guess you just have to be willing to do anything. At this point, I’d even be a cleaning lady this summer if it means a full time job!

Comment by Amanda — January 31, 2009 @ 6:39 pm

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I have been looking for months. I got an interview for an entry level job with USAID. You have to have a master, but that is about it. When I interviewed, I realized that I was competing against people with PhDs and a decade or more of experience. Really, I shouldn’t be competing with them for entry level jobs. Needless to say– they got the job.

Comment by Clare — January 31, 2009 @ 8:52 pm

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We are definitely feeling it. Our company shut down a plant and in addition is looking for 350 more voluntary layoffs. Additionally they implmented a 4 day work for the majority of the employees. They have to take their 5th day as a vacation day or else time away w/out pay. Essentially that’s a 20% pay cut. I happen to have been spared because I’m on a project that is costing the company money for each day that we don’t implement so we have to work and we are working 10 hour days. Also, no one got any raises this year. It’s really scary out there right now.

Comment by Ritamae — February 1, 2009 @ 8:04 am

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Yes, the same as you, I didn’t feel it until a couple of months ago. Now it seems a reality.

On the good news front, Matt goes back to work next week.

Comment by Ordinary Girl — February 1, 2009 @ 8:55 am

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The economy thing is scary right now. I know that L.’s company is constantly threatening layoffs becuase they have no new contracts coming in.

I thought it was interested that months ago I read that the Chilean government said they were safe because they had copper. Didn’t really think to far ahead did they?

Comment by Sara — February 1, 2009 @ 12:37 pm

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Yeah, my husband’s company has a lot fewer contracts right now than usual but they are getting creative and expanding their service offerings. I am a freelancer so I guess I don’t feel it that much although I will be getting a big ass pay cut come April since one of my contracts is up. I am going to try to launch my own SEO writing business this week though in the middle of this mess. Hopefully it works out! I am just counting my blessings for not having a corporate job and being at risk of getting laid off!!

Comment by kumichan83 — February 1, 2009 @ 5:34 pm

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Woah, I had no idea that they’d stopped construction on the Costanera Center! At this rate it will be all finished and shiny and new and fabulous just as I’m leaving (and you will be long gone).

I too feel like it’s the calm before the storm. People here seem to think that a) Chile would have been hit by the recession at the same time as countries like the US and UK and b) the worst is over. So by that logic yay, Chile wins! But unfortunately lots of people who know about these things are saying that 2009 is going to get worse before it gets better, and as a developing country any problems will hit Chile later than developed countries. I think this year could be pretty awful, especially when you consider that even before many crisis effects were being felt here Chile was having its own internal inflation problems which were causing problems for plenty of people earning low salaries.

As far as how I personally feel, I know I’ll be fine. And friends and family in the US and UK seem to be mostly unaffected so far. But even with that security, I’m trying to budget better and take some preventative steps against any drop in income – it’s just the smart thing to do these days.

Comment by Emily — February 1, 2009 @ 6:09 pm

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Amanda, lots of nanny gigs pay pretty well too, so that could really help you out a lot. Most people I know work full time + part time jobs right now too.

Clare, can’t believe people with doctorates are going for entry level positions, that’s nuts, and sucks for you!

Mom, I’m so glad you’re project is too expensive for them to cut you off You got lucky, bigtime!

O.G., Matt goes back to work already!?? WOW. That’s such good news, I’m happy to hear that!

Sara, Chile always thinks they have copper to fall back on…what about in 100 or 200 years when it runs out?!?

Kathleen, yeah, I think you and I are lucky in that way. Since we work for ourselves our jobs are already unstable, hahaha, so we don’t have to worry about things getting too much worse!

Emily, I have to admit that you being on a budget too has certainly helped my budget. Not going out for lunch every day this month definitely saved me a lot of money!

Comment by Mamacita Chilena — February 1, 2009 @ 6:17 pm

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Not sure if you knew this or not, but the reason they shut down work on the Costanera Center is that they did not account for the extra traffic and parking demands the center would have on the area. Of course, this was totally compounded by the economy as well.. but kindof a ridiculous thing to forget!

When they do start up again, no Jumbo for them!

Comment by Rachel — February 1, 2009 @ 9:09 pm

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Hey Rachel, the article that I read in the newspaper didn’t mention that all. If they really didn’t take that into account they’re even more retarded than I thought.

The article basically said that since the Costanera Center is based upon spending, with all the hotels and shopping it was supposed to have inside it, the owners realized that with the economy the way it is, it would take them way to long to recover the investment money, so it was no longer worth it to them.

Comment by Mamacita Chilena — February 1, 2009 @ 9:14 pm

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What paper did you read that article in? I might track it down and read the whole thing.

From what I’ve heard, if and when they start building again, they are only allowed to complete the hotel/ condos and not the shopping, unless they magically come up with parking. As if it wasn’t hard enough to find parking spots around there!!

Comment by Rachel — February 2, 2009 @ 8:32 pm

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It was either Emol or La Tercera online, can’t remember which.

Either way, I hope they start building again, as that’s a lot of jobs for a lot of Chileans.

Comment by Mamacita Chilena — February 2, 2009 @ 8:34 pm

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Definitely! BTW, did you hear that 20 MILLION people were laid off in China? Absolute madness.

Comment by Rachel — February 4, 2009 @ 1:24 pm

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