Although employers are keeping a tight rein on pay, recruitment freezes are starting to thaw.
That's the finding of new research by the CBI and recruitment experts Harvey Nash, which has revealed half of all employers are planning to freeze pay altogether, and just 4% plan to make an inflation-beating rise.
But there was some good news for interim managers looking for work as the number of firms operating a recruitment freeze has dropped from 61% in the spring to 37%.
The survey also showed that fewer employers see the need for some of the more extreme measures required to control costs earlier in the year, such as extended shut-downs, cuts in overtime, and bringing forward holidays.
However, the CBI believes the spirit of collaboration that forged these changes remains strong and marks a permanent change that will benefit the UK's labour market flexibility beyond the recession.
Commenting on the results, John Cridland, CBI Deputy Director-General, said the worst of the recession may be over but firms remain ultra cautious about increasing pay.
However, he added that the new spirit of cooperation between employers and workers will be a real fillip for UK competitiveness as the country returns to growth, delivering more flexible working and a welcome improvement in the work-life balance.