Gi Group says Temporary Employment is the Stepping Stone to Permanent Amid Job Market Struggles

Temporary employment can provide a valuable route into permanent work for candidates facing a challenging jobs market, according to leading recruitment and HR specialist Gi Group UK.

Despite the surprise fall in unemployment figures, many people are still finding the labour market difficult. This is especially true for young people, who continue to face reduced entry routes into work.

However, Gi Group UK says temporary employment can offer a practical way forward. As one of the UK’s largest and most agile labour market experts, the business is urging candidates to consider temporary work as a pathway to permanent employment.

Temporary employment amid labour market uncertainty

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.

In addition, the figure 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, despite 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.”

From temporary employment to permanent work

One example of this trend is Jan Stroud, a 60-year-old Central Sourcing Specialist at Gi Group UK.

Jan lives in Derbyshire and works as part of the business’s Service Excellence, Central Services team. She often works from the company’s 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.”

Temporary roles are part of the wider jobs market

Latest ONS figures show that 5.5% of all employees are in temporary positions. However, many in the jobs sector expect this figure to rise considerably in 2026.

Recruitment experts across Gi Group are also having more conversations with customers about temporary roles.

Traditionally, many of these customers looked for permanent candidates. However, given the uncertain geopolitical and domestic economic forecasts affecting the UK, more employers are now considering shorter-term placements.

As a result, temporary employment is becoming a more important option for both candidates and employers.

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.”

Temp-to-perm contracts are on the rise

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. Therefore, employers can reduce hiring risk while maintaining flexibility.

It also gives candidates the chance to prove their value, build experience and move towards permanent employment.

Ultimately, this type of contract bridges the gap between temporary flexibility and permanent work within an uncertain job market.