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How much do FedEx delivery drivers make?

Driving for FedEx can be lucrative, and the company’s benefits package has some rare perks that make the company more attractive than Amazon for most prospective…

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FedEx, one of the world’s most recognizable delivery companies, is an incredibly prolific employer. Between its express, ground, freight, office, and other subsidiaries, the shipping and logistics giant boasts almost 530,000 employees worldwide as of 2023. From 2012 to 2022, the company more than doubled its revenue from just shy of $43 billion to almost $94 billion, thanks in part to the many drivers and pilots that serve as caretakers of the world’s cargo as it leapfrogs across skies and highways from senders to recipients.

FedEx's logo is famous for its inclusion of an arrow in the negative space between the E and the x. 

Photo Illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images

With a reputation for lightning-fast express delivery services, FedEx  (FDX) - Get Free Report relies on its delivery professionals to keep “the world on time,” a promise that has served as one of the courier’s main slogans since 2001. If you think you might have what it takes to “live to deliver” (another FedEx slogan), you might be wondering how much you could make driving one of the company’s hidden-arrow-clad box trucks. Here’s what you need to know about FedEx delivery driver compensation, benefits, and job requirements.

Related: UPS driver salary: How much you’d make driving the big brown truck

How much does FedEx pay delivery drivers?

FedEx actually has three distinct delivery arms — express, ground, and freight. Express and Freight drivers work directly for FedEx and receive the company’s typical employee benefits, whereas Ground drivers usually work for third-party delivery businesses that contract with FedEx, so their pay and benefits are determined by their employer.

Here’s a closer look at what delivery drivers make in each of these three categories.

FedEx Express drivers don't need a CDL — just a normal driver's license and a clean driving record. 

Photo by Budrul Chukrut/SOPA Images/LightRocket via Getty Images

Express

FedEx Express is FedEx’s premium shipping service, offering two-day and overnight shipping services via a large fleet of aircraft and vehicles. As of 2022, the company had more than 86,000 vehicles in its delivery fleet. Most express delivery drivers drive box trucks and thus do not need a commercial driver's license (CDL).

A job search for “driver” on FedEx Express’ careers website in October 2023 yielded 708 results including full-time, part-time, and swing positions. Starting pay for delivery driver jobs varied geographically — typically with higher wages offered in denser, urban areas with higher costs of living — but most available positions listed a starting wage of over $20 per hour with the opportunity to eventually earn well over $30 per hour with enough experience. Below is a selection of starting wages for FedEx delivery driver jobs in various locations.

LocationPositionStarting wage

Denver, Colorado

Delivery Driver

$24.61

Dubuque, Iowa

Delivery Driver

$18.71

Fargo, North Dakota

Delivery Driver

$22.10

Jacksonville, Florida

Delivery Driver/Courier (DOT)

$20.22

Maspeth, New York

Delivery Driver

$23.26

Middletown, Pennsylvania

Swing Delivery Driver

$22.43

Pleasanton, California

Delivery Driver DOT (Part-Time)

$23.26

San Diego, California

Swing Delivery Driver

$24.57

FedEx Ground drivers work for third-party companies so pay and benefits vary considerably. 

NurPhoto/Getty Images

Ground

FedEx Ground deliveries are “performed by independent businesses with which FedEx Ground contracts.” In other words, FedEx Ground doesn’t hire delivery drivers directly — it contracts out delivery work to smaller companies that employ their own drivers.
This means pay rates and pay structure can vary quite a bit between locations, as each contractor is unique. Some pay hourly, while others pay per delivery.

According to career website Indeed, which calculates salary and wage estimates with user-submitted data from current and former employees along with information listed on public job postings, FedEx Ground delivery drivers make an average of $932 per week, which comes out to $25.78 per hour or $53,620 per year unadjusted for holidays or time off, assuming a 40-hour per-week schedule. The low end of the range was estimated at $300 per week ($17,260 per year), and the high end was estimated at $1,700 per week ($97,804 per year).

Glassdoor, a similar career website that also estimates salaries based on user data, pegs the median annual salary for a FedEx Ground delivery driver at $44,989 (about $24 per hour), with the low end of the range at $38,000 (about $20 per hour) and the high end at $54,000 (about $29 per hour).

Driving jobs with FedEx Freight offer starting wages up to a third higher than FedEx Express. 

George Rose/Getty Images

Freight

FedEx Freight employs drivers to operate larger vehicles like semi-trucks with tractor-trailers to move freight between delivery hubs and service centers and deliver freight to commercial customers. The vast majority of driving jobs with FedEx Freight require a commercial driver’s license (CDL), sometimes with special endorsements for things like transporting chemical tanks and hazardous materials.

Due to the more technical nature of driving larger vehicles and transporting freight instead of smaller packages and parcels, driver positions with FedEx Freight offer higher starting wages than those with FedEx Express, but most require some degree of trucking experience. FedEx Freight does offer apprentice driver roles that include training to prepare employees to drive commercial vehicles with the promise of promotion to driver upon successful completion.

An October 2023 search of FedEx Freight’s careers site yielded 128 open driver positions. Road (long-haul) drivers are typically paid by the mile — usually $0.60 to $0.80 per mile. Due to this pay structure, take-home pay varies based on route, and the highest-paying routes are reportedly assigned based on seniority.

FedEx Freight’s city drivers, on the other hand, are paid an hourly wage, usually starting around $30 per hour. Below is a selection of starting wages for FedEx city drivers across a variety of locations in the United States.

LocationStarting wage

Fife, Washington

$30.09

Pocono Summit, Pennsylvania

$29.47

Rapid City, South Dakota

$28.11

North Reading, Massachusetts

$33.94

Cookeville, Tennessee

$28.11

East Syracuse, New York

$29.47–$34.11

Phoenix, Arizona

$29.47

What benefits do FedEx drivers get?

FedEx is well known for its robust employee benefits packages, which include the usual suspects like healthcare and retirement accounts along with more niche perks like shipping discounts and tuition reimbursement. Here’s a closer look at some of the benefits FedEx Express and Freight drivers may be eligible for.

Note: FedEx ground drivers typically do not work directly for FedEx, so their benefits vary depending on which FedEx contractor employs them.

Healthcare

Eligible full and part-time FedEx employees have access to employer-sponsored health, dental, vision, disability, life, and prescription medication insurance after 90 days on the job. According to some reports, FedEx pays 100% of employees’ health insurance premiums (so no monthly paycheck deductions are required for coverage), and the insurance extends to dependents as well. FedEx also allows employees to contribute a percentage of their paycheck to a tax-free health savings account.

Retirement

FedEx, like many other employers, allows employees to contribute to sponsored Roth or traditional 401(k) retirement accounts and provides matching contributions up to a certain percentage. Most employers match employee 401(k) contributions betwen 3–5% of each paycheck, but FedEx actually offers matching that exceeds employee contributions.

If an employee contributes 6% of each paycheck to their 401(k), for instance, FedEx contributes its maximum 8% match. The table below breaks down FedEx’s 401(k) matching protocols by employee contribution.

Employee contributionCompany match

1%

2%

2%

4%

3%

5%

4%

6%

5%

7%

6%

8%

Time off

FedEx drivers accrue paid time off at a rate of 1 hour for every 20 hours worked, which adds up to around 80 hours per year for a driver with a full-time schedule. An employee can begin using their PTO after working with the company for 90 days. Sick days reportedly vary based on location and how long a driver has been with the company.

FedEx also offers parental leave for new parents — 50 weeks paid and 50 weeks unpaid for maternity, and two weeks paid for paternity.

Education

Drivers at FedEx may be eligible for some amount of tuition reimbursement for college courses, but tuition assistance varies depending on which subsidiary a driver works for. According to some reports, however, FedEx does not provide reimbursement if the employee is receiving other sources of financial aid (e.g., grants and loans from a FAFSA application), which most students do.

Shipping discounts

FedEx offers discounted shipping services to its employees. The exact discount may vary between location, subsidiaries, and positions, but most FedEx employee reports on career websites like Indeed and Glassdoor claim that they receive discounts of either 50% or 75%.

What are the requirements to become a FedEx Driver?

To drive for FedEx Express, an applicant must be 21 years of age, have a clean driving record, and possess a high school diploma or GED. Additionally, the ability to safely lift heavy packages is required, which can be a barrier to entry for applicants with certain physical limitations.

To drive for FedEx Freight, an applicant must have a commercial driver’s license (CDL), sometimes with additional endorsements depending on the position. FedEx Freight mostly hires drivers who already have trucking experience, but their driver apprentice program allows applicants without trucking experience to work their way up to driver with on-the-job education.

Frequently asked questions (FAQ)

Below are answers to some of the most common questions prospective applicants have about driving for FedEx.

What are the downsides to driving for FedEx?

The most commonly reported complaints about driving for FedEx are long hours, strenuous physical work, injury risk, inflexible schedules, and high turnover.

Related: Amazon delivery driver salary: How much they really make

FedEx vs. UPS vs. Amazon: Which pays the best?

Amazon’s DSP drivers (the folks in the large, branded Sprinter vans) usually receive a starting wage of around $20 per hour, although this varies based on location. UPS pays a little better, with most available driver positions listing starting wages of at least $23 per hour, although jobs in some areas start at $21 per hour. Starting wages for FedEx Express drivers vary between around $18 per hour and $25 per hour based on location, so it tends to be somewhat in line with UPS.

How much does a FedEx pilot make?

First officers on FedEx planes typically make between $75,000 and $200,000 per year, while pilots typically make between $220,00 and $280,000.

Is FedEx unionized?

As of late 2023, FedEx is not unionized.

Does FedEx drug test?

FedEx reportedly requires applicants to pass a urine-based drug screen to secure employment. After the initial drug test during the hiring process, however, most employees are not drug tested again unless they are suspected of inebriation. 

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February Employment Situation

By Paul Gomme and Peter Rupert The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000…

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By Paul Gomme and Peter Rupert

The establishment data from the BLS showed a 275,000 increase in payroll employment for February, outpacing the 230,000 average over the previous 12 months. The payroll data for January and December were revised down by a total of 167,000. The private sector added 223,000 new jobs, the largest gain since May of last year.

Temporary help services employment continues a steep decline after a sharp post-pandemic rise.

Average hours of work increased from 34.2 to 34.3. The increase, along with the 223,000 private employment increase led to a hefty increase in total hours of 5.6% at an annualized rate, also the largest increase since May of last year.

The establishment report, once again, beat “expectations;” the WSJ survey of economists was 198,000. Other than the downward revisions, mentioned above, another bit of negative news was a smallish increase in wage growth, from $34.52 to $34.57.

The household survey shows that the labor force increased 150,000, a drop in employment of 184,000 and an increase in the number of unemployed persons of 334,000. The labor force participation rate held steady at 62.5, the employment to population ratio decreased from 60.2 to 60.1 and the unemployment rate increased from 3.66 to 3.86. Remember that the unemployment rate is the number of unemployed relative to the labor force (the number employed plus the number unemployed). Consequently, the unemployment rate can go up if the number of unemployed rises holding fixed the labor force, or if the labor force shrinks holding the number unemployed unchanged. An increase in the unemployment rate is not necessarily a bad thing: it may reflect a strong labor market drawing “marginally attached” individuals from outside the labor force. Indeed, there was a 96,000 decline in those workers.

Earlier in the week, the BLS announced JOLTS (Job Openings and Labor Turnover Survey) data for January. There isn’t much to report here as the job openings changed little at 8.9 million, the number of hires and total separations were little changed at 5.7 million and 5.3 million, respectively.

As has been the case for the last couple of years, the number of job openings remains higher than the number of unemployed persons.

Also earlier in the week the BLS announced that productivity increased 3.2% in the 4th quarter with output rising 3.5% and hours of work rising 0.3%.

The bottom line is that the labor market continues its surprisingly (to some) strong performance, once again proving stronger than many had expected. This strength makes it difficult to justify any interest rate cuts soon, particularly given the recent inflation spike.

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Mortgage rates fall as labor market normalizes

Jobless claims show an expanding economy. We will only be in a recession once jobless claims exceed 323,000 on a four-week moving average.

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Everyone was waiting to see if this week’s jobs report would send mortgage rates higher, which is what happened last month. Instead, the 10-year yield had a muted response after the headline number beat estimates, but we have negative job revisions from previous months. The Federal Reserve’s fear of wage growth spiraling out of control hasn’t materialized for over two years now and the unemployment rate ticked up to 3.9%. For now, we can say the labor market isn’t tight anymore, but it’s also not breaking.

The key labor data line in this expansion is the weekly jobless claims report. Jobless claims show an expanding economy that has not lost jobs yet. We will only be in a recession once jobless claims exceed 323,000 on a four-week moving average.

From the Fed: In the week ended March 2, initial claims for unemployment insurance benefits were flat, at 217,000. The four-week moving average declined slightly by 750, to 212,250


Below is an explanation of how we got here with the labor market, which all started during COVID-19.

1. I wrote the COVID-19 recovery model on April 7, 2020, and retired it on Dec. 9, 2020. By that time, the upfront recovery phase was done, and I needed to model out when we would get the jobs lost back.

2. Early in the labor market recovery, when we saw weaker job reports, I doubled and tripled down on my assertion that job openings would get to 10 million in this recovery. Job openings rose as high as to 12 million and are currently over 9 million. Even with the massive miss on a job report in May 2021, I didn’t waver.

Currently, the jobs openings, quit percentage and hires data are below pre-COVID-19 levels, which means the labor market isn’t as tight as it once was, and this is why the employment cost index has been slowing data to move along the quits percentage.  

2-US_Job_Quits_Rate-1-2

3. I wrote that we should get back all the jobs lost to COVID-19 by September of 2022. At the time this would be a speedy labor market recovery, and it happened on schedule, too

Total employment data

4. This is the key one for right now: If COVID-19 hadn’t happened, we would have between 157 million and 159 million jobs today, which would have been in line with the job growth rate in February 2020. Today, we are at 157,808,000. This is important because job growth should be cooling down now. We are more in line with where the labor market should be when averaging 140K-165K monthly. So for now, the fact that we aren’t trending between 140K-165K means we still have a bit more recovery kick left before we get down to those levels. 




From BLS: Total nonfarm payroll employment rose by 275,000 in February, and the unemployment rate increased to 3.9 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in health care, in government, in food services and drinking places, in social assistance, and in transportation and warehousing.

Here are the jobs that were created and lost in the previous month:

IMG_5092

In this jobs report, the unemployment rate for education levels looks like this:

  • Less than a high school diploma: 6.1%
  • High school graduate and no college: 4.2%
  • Some college or associate degree: 3.1%
  • Bachelor’s degree or higher: 2.2%
IMG_5093_320f22

Today’s report has continued the trend of the labor data beating my expectations, only because I am looking for the jobs data to slow down to a level of 140K-165K, which hasn’t happened yet. I wouldn’t categorize the labor market as being tight anymore because of the quits ratio and the hires data in the job openings report. This also shows itself in the employment cost index as well. These are key data lines for the Fed and the reason we are going to see three rate cuts this year.

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Inside The Most Ridiculous Jobs Report In History: Record 1.2 Million Immigrant Jobs Added In One Month

Inside The Most Ridiculous Jobs Report In History: Record 1.2 Million Immigrant Jobs Added In One Month

Last month we though that the January…

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Inside The Most Ridiculous Jobs Report In History: Record 1.2 Million Immigrant Jobs Added In One Month

Last month we though that the January jobs report was the "most ridiculous in recent history" but, boy, were we wrong because this morning the Biden department of goalseeked propaganda (aka BLS) published the February jobs report, and holy crap was that something else. Even Goebbels would blush. 

What happened? Let's take a closer look.

On the surface, it was (almost) another blockbuster jobs report, certainly one which nobody expected, or rather just one bank out of 76 expected. Starting at the top, the BLS reported that in February the US unexpectedly added 275K jobs, with just one research analyst (from Dai-Ichi Research) expecting a higher number.

Some context: after last month's record 4-sigma beat, today's print was "only" 3 sigma higher than estimates. Needless to say, two multiple sigma beats in a row used to only happen in the USSR... and now in the US, apparently.

Before we go any further, a quick note on what last month we said was "the most ridiculous jobs report in recent history": it appears the BLS read our comments and decided to stop beclowing itself. It did that by slashing last month's ridiculous print by over a third, and revising what was originally reported as a massive 353K beat to just 229K,  a 124K revision, which was the biggest one-month negative revision in two years!

Of course, that does not mean that this month's jobs print won't be revised lower: it will be, and not just that month but every other month until the November election because that's the only tool left in the Biden admin's box: pretend the economic and jobs are strong, then revise them sharply lower the next month, something we pointed out first last summer and which has not failed to disappoint once.

To be fair, not every aspect of the jobs report was stellar (after all, the BLS had to give it some vague credibility). Take the unemployment rate, after flatlining between 3.4% and 3.8% for two years - and thus denying expectations from Sahm's Rule that a recession may have already started - in February the unemployment rate unexpectedly jumped to 3.9%, the highest since February 2022 (with Black unemployment spiking by 0.3% to 5.6%, an indicator which the Biden admin will quickly slam as widespread economic racism or something).

And then there were average hourly earnings, which after surging 0.6% MoM in January (since revised to 0.5%) and spooking markets that wage growth is so hot, the Fed will have no choice but to delay cuts, in February the number tumbled to just 0.1%, the lowest in two years...

... for one simple reason: last month's average wage surge had nothing to do with actual wages, and everything to do with the BLS estimate of hours worked (which is the denominator in the average wage calculation) which last month tumbled to just 34.1 (we were led to believe) the lowest since the covid pandemic...

... but has since been revised higher while the February print rose even more, to 34.3, hence why the latest average wage data was once again a product not of wages going up, but of how long Americans worked in any weekly period, in this case higher from 34.1 to 34.3, an increase which has a major impact on the average calculation.

While the above data points were examples of some latent weakness in the latest report, perhaps meant to give it a sheen of veracity, it was everything else in the report that was a problem starting with the BLS's latest choice of seasonal adjustments (after last month's wholesale revision), which have gone from merely laughable to full clownshow, as the following comparison between the monthly change in BLS and ADP payrolls shows. The trend is clear: the Biden admin numbers are now clearly rising even as the impartial ADP (which directly logs employment numbers at the company level and is far more accurate), shows an accelerating slowdown.

But it's more than just the Biden admin hanging its "success" on seasonal adjustments: when one digs deeper inside the jobs report, all sorts of ugly things emerge... such as the growing unprecedented divergence between the Establishment (payrolls) survey and much more accurate Household (actual employment) survey. To wit, while in January the BLS claims 275K payrolls were added, the Household survey found that the number of actually employed workers dropped for the third straight month (and 4 in the past 5), this time by 184K (from 161.152K to 160.968K).

This means that while the Payrolls series hits new all time highs every month since December 2020 (when according to the BLS the US had its last month of payrolls losses), the level of Employment has not budged in the past year. Worse, as shown in the chart below, such a gaping divergence has opened between the two series in the past 4 years, that the number of Employed workers would need to soar by 9 million (!) to catch up to what Payrolls claims is the employment situation.

There's more: shifting from a quantitative to a qualitative assessment, reveals just how ugly the composition of "new jobs" has been. Consider this: the BLS reports that in February 2024, the US had 132.9 million full-time jobs and 27.9 million part-time jobs. Well, that's great... until you look back one year and find that in February 2023 the US had 133.2 million full-time jobs, or more than it does one year later! And yes, all the job growth since then has been in part-time jobs, which have increased by 921K since February 2023 (from 27.020 million to 27.941 million).

Here is a summary of the labor composition in the past year: all the new jobs have been part-time jobs!

But wait there's even more, because now that the primary season is over and we enter the heart of election season and political talking points will be thrown around left and right, especially in the context of the immigration crisis created intentionally by the Biden administration which is hoping to import millions of new Democratic voters (maybe the US can hold the presidential election in Honduras or Guatemala, after all it is their citizens that will be illegally casting the key votes in November), what we find is that in February, the number of native-born workers tumbled again, sliding by a massive 560K to just 129.807 million. Add to this the December data, and we get a near-record 2.4 million plunge in native-born workers in just the past 3 months (only the covid crash was worse)!

The offset? A record 1.2 million foreign-born (read immigrants, both legal and illegal but mostly illegal) workers added in February!

Said otherwise, not only has all job creation in the past 6 years has been exclusively for foreign-born workers...

Source: St Louis Fed FRED Native Born and Foreign Born

... but there has been zero job-creation for native born workers since June 2018!

This is a huge issue - especially at a time of an illegal alien flood at the southwest border...

... and is about to become a huge political scandal, because once the inevitable recession finally hits, there will be millions of furious unemployed Americans demanding a more accurate explanation for what happened - i.e., the illegal immigration floodgates that were opened by the Biden admin.

Which is also why Biden's handlers will do everything in their power to insure there is no official recession before November... and why after the election is over, all economic hell will finally break loose. Until then, however, expect the jobs numbers to get even more ridiculous.

Tyler Durden Fri, 03/08/2024 - 13:30

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