Ian McArdle, chairman of the social services committee, announced the move last week to a group of protestors.
He said: 'We will be lifting the jobs freeze on social service workers with immediate effect. We will do everything we can to support day centres and ensure service users receive the services they require.'
He said he did not expect any further job freezes during the financial year, but the announcement was met with scepticism by members of Unison.
At a committee meeting last week, Richard Evans, Birmingham's social services director, said: 'The jobs freeze was necessary because if we had continued as we were there would have been a£3m overspend. But due to the action taken a 'balanced budget' position is now achievable.'
'Demands on social services are infinite while we only have a finite amount of money in our budget.'