Companies Restore Pay

Good news for those who've managed to hold on to their paychecks through the worst of the recession: Workers at several companies who had to endure pay and benefit cuts in the past year are starting to see their salaries restored to pre-recession levels.

CNN Money reports that according to a recent survey by consulting firm Watson Wyatt, 44 percent of employers said they plan to roll back salary cuts in the next six months. Thirty-three percent of employers that froze salaries plan to unfreeze them, and 24 percent of employers surveyed plan to reverse reductions to 401(k) match contributions by the end of the year.

Even companies in bellwether industries like auto and tech are reversing pay cuts. General Motors, which had cut salaries for some of its U.S. workers by between 3 and 10 percent in May reinstated pay at the beginning of September and hard drive manufacturer Seagate Technologies, which cut pay by 10 percent, plans to do the same. Federal Express could be not far behind it says, as long as the economy continues to improve and business picks up.

But before anyone swaggers onto a heli-pad to declare the end of the recession, bear in mind that while the pay reinstatements will no doubt be good for morale, they're not necessarily a sign that profits are back with a bang. In many cases, the return to pre-recession salaries has been made possible thanks to deep job cuts and other cost-saving measures.

In other words, we'll believe it when we see it is our motto when it comes to the economic recovery. In the meantime, show us the money and the jobs!

Photo courtesy of TW Collins via Flickr.