Despite the surprise fall in unemployment figures, many people are still finding the job market extremely challenging as young people face reduced entry ways in the labour market. However, leading recruitment and HR specialist Gi Group UK is offering a glimmer of hope as it highlights the important role temporary work can play. As one of the UK’s largest and most agile labour market experts, Gi Group is urging candidates to consider temporary work as a pathway to permanent employment.
The latest figures from the Office for National Statistics (ONS) show that the estimated number of payrolled employees in the UK fell by 74,000 between February 2025 and February 2026, and decreased by 6,000 between January and February 2026. The early estimate for employees in March 2026 decreased further by 0.3% over the year, in spite of unemployment falling from 5.2% to 4.9%.
“Temporary employment provides an excellent gateway for engaged, motivated and determined candidates,” said Paulo Canoa, Chief Regional Officer for Gi Group UK & Ireland. “Many can view permanent employment as the main entry way into the labour market and stay clear of ‘uncertain’ temporary employment. However, this employment style not only provides employees with a guaranteed step onto the employment ladder, but it also allows businesses to assess the value of employees and navigate the transition to permanent contracts, for those they feel are the right fit and show potential.
“As we face such an uncertain labour market, now is the time for candidates to think differently, to break the mould of looking for a permanent position first and foremost and to challenge the myth that temporary work is always just that. We have so many success stories across our business and client base of temporary positions leading swiftly to permanent roles – so much so that we can certainly see a trend emerging across diverse sectors.”
Jan Stroud, a 60 year old Central Sourcing Specialist at Gi Group UK is a ‘homegrown’ example of the trend in action. Living in Derbyshire and working as part of the business’ Services Excellence, Central Services team, Jan often works from its Nottingham hub. She commented: “Through sustained performance and specialist expertise I am delighted to have been able to progress from temp to perm employment at Gi Group. Being part of an organisational structure willing to recognise my contribution, irrespective of my age or disability, has ensured my successful progression.
“Following my MS diagnosis, temporary employment provided me with essential flexibility, but it also created a platform to demonstrate my capability, resilience and commercial value over time. As Gi Group has evolved its Service Excellence model, I have been able to take on a 30-hour contract, reflecting the importance of inclusion and adaptable employment practices.”
Latest ONS figures show that 5.5% of all employees are in temporary positions, a figure which many in the jobs sector expect will rise considerably in 2026. Recruitment experts across Gi Group are having increasingly more conversations with customers who traditionally looked for permanent candidates that are now opting for shorter term placements, given the very uncertain geopolitical and domestic economic forecasts buffeting the UK.
Jan continued: “Temporary employment was the ideal gateway for my progression – providing a structured yet flexible entry point that enabled me to manage my health while continuing to deliver measurable results. Not only was this a great opportunity for me, but it also provided Gi Group with the time to evaluate performance over a sustained period. Temporary work can be a powerful talent pipeline.
“For anyone in a temporary position now, and looking to gain a permanent role, I truly believe that this route should be viewed as a credible and strategic entry route to long-term employment. It allows individuals to demonstrate their value in real-time, while helping them to develop sector expertise and their own industry network. Temporary work helped me to re-enter the workforce when I wasn’t sure if a permanent position was viable but through effective management, I now have the confidence to become an integral member of our team. I would urge candidates to treat temporary assignment as an opportunity to evidence professionalism and impact. With commitment, adaptability and strong performance, progression is absolutely achievable.”
Across the UK, temp-to-perm contracts are on the rise for employers. When permanent hiring slows, this arrangement allows businesses to bring skilled workers in on a temporary basis, which provides reduced hiring risk, flexibility and the opportunity for progression. This contract bridges the gap between temporary flexibility and permanent employment within an uncertain job market.
Gi Group UK is headquartered in Chesterfield in the Midlands. Parented by Gi Group Holding, Gi Group UK employs close to 500 people in 2026 from 17 hub locations. Working across manufacturing, logistics, food and drink and many other sectors, Gi Group UK is uniquely committed to the creation of social and economic value for both employers and candidates alike.
