While the UK labour market continues to flatline and employers remain cautious in the face of rising costs, leading HR and recruitment specialist Gi Group has bucked the trend, reporting a return to growth. The company recorded 5% growth in Q4 of 2025, and double-digit growth in December alone, outperforming the market despite the current economic challenges.
Though the broader jobs market remains stagnant, Gi Group has driven its growth through rising demand in the manufacturing, logistics and pharmaceutical sectors. The business has focused on building deeper relationships with its existing clients, expanding its foothold in its various markets, and embedding a consultative, end-to-end approach to workforce solutions.
“We’re seeing the benefits of our long-term strategy to evolve into a genuine, practical partner to our clients,” said Paulo Canoa, Chief Regional Officer for Gi Group UK & Ireland. “By offering integrated, tailored solutions we’ve managed to gain market share even as the overall market contracts.”

Paulo Canoa, Country Manager Gi Group UK
The UK labour market continued to show signs of weakness into late 2025. According to the Office for National Statistics, the number of payrolled employees fell by 135,000 over the year and by 43,000 over the quarters from September to November. Estimates suggest a further fall of 184,000 in December, bringing the total number of payrolled employees to 30.2 million. Despite this, vacancies stabilised with a modest increase of 10,000 vacancies between October and December 2025, suggesting a slowdown in the rate of decline.
Paulo added: “There’s no denying the labour market in the UK remains fragile. Employers are being extremely cautious about hiring, and the gap between the roles on offer and the profiles available continues to create friction. However, we’re seeing glimmers of stability. Confidence in the market hasn’t totally collapsed, it’s just tentative.”
Gi Group’s Q4 performance has been buoyed by its targeted efforts in high demand sectors, as well as its expanded service offering to help clients navigate a complex talent landscape. The business’s ability to support clients with workforce planning, compliance and strategic information has proven key in gaining trust and business continuity during volatile times.
Looking ahead, Paulo remains measured but more optimistic than in previous forecasts: “While the first half of 2026 is likely to remain challenging, I expect the second half to show improvement. Seasonal demands will once again play a role – but I think this year they could spike even more than in previous years.
“I also think the decline of job vacancies will slowdown into an eventual plateau, giving some semblance of stability.”
The employment rate from September to November 2025 stood at 75.1%, while the unemployment rate remained steady at 5.1%. Despite the overall decline in payrolled employees, Gi Group’s performance highlights the potential for growth through strategic focus, adaptability and strong client partnerships.
“We’ll continue to push forward and find new and innovative ways to support our customers to create workforces which are strong, intuitively formed and agile in the face of uncertain economic forces,” said Paulo. “I think our methods of engaging both our clients and potential candidates will be the future of the staffing industry – as a collective, we must work more collaboratively to ensure that employers are getting the right profile of candidates, and that candidates feel the roles they’re being put into are the right fit for them.”






