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Consumers may get help with credit card debt as employers reverse salary cutsA new survey from Watson Wyatt finds that an increasing number of businesses are planning to remove hiring and wage freezes and begin contributing to employee retirement plans. According to the findings of the survey, of companies that put a freeze on employee salaries, 33 percent plan to reverse that decision in the next six months - almost double the amount (17 percent) who said the same in June. Keeping the best employees also appears to be something employers are thinking of, as more than half (52 percent) said holding onto "top performers" and "critical-skill employees" was more important that it was before the recession began. But the survey also found that many employers have noticed their workers are having trouble making ends meet with 36 percent saying there has been an increase in hardship withdrawals from retirement funds over the last two months. Another 37 percent noted a rise in loans from 401(k) and 403(b) plans over that time. Despite the good news from companies in this survey, it doesn't seem to be translating into actual hiring. While the unemployment rate dropped unexpectedly to 9.4 percent in July, initial jobless claims for the week ending August 8 rose by 4,000, according to the Department of Labor, after many experts expected claims to fall by up to 9,000. "There is really no positive spin to put on these numbers," Jennifer Lee, an economist with BMO Capital Markets, wrote in a research note, according to the Associated Press. "The U.S. consumer remains very weak. The jobs situation, while slowly improving, is still dismal."
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