Under a Layer of Financial Frost Job Growth Germinates

Signs are showing through that the job market may be improving with two major U.S. companies announcing in the last week that they will be returning regular pay increases for workers.

FedEx Corp. (NYSE: FDX) announced today that they will be unfreezing salaries next year, despite reporting a 30 percent drop in profit for the second quarter.

"While there is some uncertainty regarding the sustainability of current demand trends after our peak shipping season, we expect our strong operating leverage to provide improved year-over-year profitability in the second half of our fiscal year," said Alan Graf, FedEx's chief financial officer.

The shipping company will also resume 50 percent of its matching program for 401(k) retirement funds of most U.S. employees.

FedEx froze both its salaries and matching program last year to combat the economic downturn.

"We have taken decisive actions during the economic downturn to reduce expenses while expanding our networks in growth markets," Frederick Smith, FedEx CEO said.

Ford Motor Co. (NYSE: F) announced on Tuesday that it will reinstate merit pay increases for salaried workers in the U.S., according to a company spokeswoman.

Ford, where shares are at two-and-a-half year highs, will now bring back pay raises and other benefits to U.S. salaried workers that had been cut to conserve cash for the only U.S. automaker that did not need to take government backed stimulus money to battle the weak economy.

Marcy Evans, spokeswoman for Ford, said that salaried workers, including executives are in line to receive pay increases based on performance in 2009 on April 1.

Effective January 1, the company will also reinstated its 401(k) matching program that had been suspended at the start of 2009. Also Ford will restart its tuition assistance program for salaried workers in the U.S. that had been stopped 18 months ago on March 1.

Shares for Ford are at $9.45 currently, up over nine-fold since falling to a low of $1.02 in November of 2008.

"We have to expect as the economic recovery takes hold that the reinstatement of benefits and dividends will follow as the long as the recovery holds," John Stoltzfus, Director and Senior Market Strategist at Ticonderoga Securities told StreetInsider.com.

Stoltzfus sees companies taking care of the employees that they kept to weather the weak economy before bringing new employees to fill jobs that were cut.

"At this point increasing levels of confidence are going to flow through for companies that have exposure to the global recovery," Stoltzfus added.