Pay freezes implemented by employers to stave off the recession are coming to an end, the IES has said.

Widespread pay freezes implemented by employers to stave off the effects of the recession are coming to an end, those starting a recruitment company may be interested to hear.

According to the Institute for Employment Studies (IES), fewer companies are forecasting pay freezes this year compared to last year thanks to improving economic conditions.

Duncan Brown, director of human resources business development at the IES, explained that things are changing because recovery is improving and there are fears that "two years of [pay] freezes and no bonus will mean better people will leave".

The proportion of pay freezes continued to fall in the three months to the end of March 2010, with freezes accounting for 31 per cent of settlements during this period, Incomes Data Services revealed recently.

Just as the private sector begins to lift its pay freezes, the government announced £6.2 billion worth of savings, which could herald the implementation of widespread pay caps in the public sector.