Gi Group UK Highlights Temporary Roles as Key Pathway to Permanent Jobs Amid Labour Market Challenges

Despite a recent unexpected drop in unemployment rates, many individuals, particularly young people, continue to encounter significant difficulties entering the UK labour market. Gi Group UK, a leading recruitment and HR firm, has emphasised the vital role temporary employment can play in overcoming these barriers.

As one of the country’s largest labour market specialists, Gi Group is encouraging job seekers to view temporary positions as a strategic step towards securing permanent employment. The Office for National Statistics (ONS) reported a decline of 74,000 payrolled employees between February 2025 and February 2026, with a further decrease of 6,000 between January and February 2026. Early estimates for March 2026 indicate a 0.3% annual reduction in employee numbers, despite the unemployment rate falling from 5.2% to 4.9%.

Paulo Canoa, Chief Regional Officer for Gi Group UK & Ireland, stated: “Temporary employment provides an excellent gateway for engaged, motivated and determined candidates. 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.”

He added: “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, exemplifies this trend. Based in Derbyshire and working within the company’s Services Excellence, Central Services team from its Nottingham hub, Jan shared her experience: “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.”

Jan continued: “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.”

According to the latest ONS data, 5.5% of all UK employees hold temporary positions, a figure expected to rise significantly throughout 2026. Gi Group’s recruitment experts report increasing demand from clients who traditionally sought permanent hires but are now opting for short-term placements due to uncertain geopolitical and economic conditions.

Jan emphasised the benefits of temporary roles: “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.”

She urged others in temporary roles to view this path as a credible route to permanent employment: “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, employers are increasingly adopting temp-to-perm contracts. This approach offers businesses flexibility and reduced hiring risk during periods of slowed permanent recruitment, while allowing skilled workers to transition into permanent roles when appropriate. It effectively bridges the gap between temporary flexibility and permanent employment amid an unpredictable job market.

Gi Group UK, headquartered in Chesterfield, Midlands, is part of Gi Group Holding and employs nearly 500 people across 17 hubs in 2026. The company operates in sectors including manufacturing, logistics, and food and drink, with a strong commitment to generating social and economic value for both employers and candidates.