23.04.2026

Temporary employment is the stepping Stone to permanent amid job market struggles, says Gi Group

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 per cent over the year, in spite of unemployment falling from 5.2 per cent to 4.9 per cent.

“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.”

Latest ONS figures show that 5.5 per cent 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.

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.

uk.gigroup.com

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