Gi Group Urges New PM to Seize ‘Golden Window’ and Put the Labour Market Back on Track

Latest data from the ONS reveals that the number of job vacancies in the UK decreased by 0.9% in the latest quarter, falling to 712,000 between April and June 2026 compared with January to March 2026. Smaller businesses are reported to be particularly cautious about hiring, with many putting new recruitment on hold. Businesses with between one and nine employees saw vacancies fall by as much as 8,000.

With fears of a recruitment freeze on the horizon, leading HR and recruitment specialist Gi Group UK has urged the new Prime Minister, Andy Burnham, to seize the ‘golden opportunity’ presented by the early days of his premiership.

The public will be expecting bold and decisive action, such as his VAT cut for pubs and leisure venues. Gi Group wants to see Mr Burnham take equally swift action to protect the UK labour market.

Smaller businesses remain cautious about hiring

While bigger businesses have become more adept at navigating economic uncertainty triggered by changing policy, war and the rising cost of living, Gi Group forewarns that smaller businesses are having to make increasingly difficult decisions. As a result, employers are being especially cautious about adding headcount.

Paulo Canoa, Chief Regional Officer for Gi Group UK and Ireland, said:

“The market isn’t frozen, but what we are seeing is employers, especially SMEs, becoming a lot more selective in hiring decisions, increasing scrutiny and focusing on worries about workforce expansion.

“The labour market isn’t frozen; it’s waiting for confidence to return. Many are simply delaying recruitment quietly, leaving vacancies unfilled or replacing permanent hires with temporary workers.

“Across the UK and Ireland, we work with thousands of employers every week, giving us a real-time view of how hiring decisions are changing before they appear in official statistics.

“As a result, this is the first time in three years we have seen a trend for increased demand for temporary workers. For our industry, this is a double-edged sword. While we thrive in a buoyant temporary market, we also want to see business confidence in hiring across the board return to pre-pandemic levels. We’re a long way from that at the moment.”

Gi Group calls for action from the new Prime Minister

Paulo continued:

“In the first weeks of his premiership, we want Mr Burnham to take a really close look at the jobs market in the UK and listen to our analysis of the problems on the table right now.

“It isn’t a ‘one size fits all’ landscape by any means, and we need to have confidence that the new PM is listening to the concerns of those leading the staffing and skilling sectors across every profession and industry in the UK.

“What works for manufacturing does not work for healthcare, and what works for the automotive sector doesn’t necessarily work for the logistics sector.”

The ONS painted a picture in its latest statistics of a recruitment market that is weaker and less active than it was a year ago, but still functioning at historically reasonable levels. Employers have become more cautious, while workers face greater competition for vacancies.

Greater support needed for SMEs

Paulo added:

“We welcome the new Prime Minister into post, but what we would like to see from the Government is increased support for smaller businesses. This would allow them to confidently call on the flexibility temporary work provides, as larger businesses do.

“Flexibility is key to what will be a difficult period ahead for the labour market. The new Government must take decisions to ensure SMEs level up at the same rate as bigger businesses and put some hope back into the hearts and minds of business owners.”

Job vacancies may be dropping overall across the UK, but Gi Group says demand for temporary workers remains high among its large clients in sectors including logistics and manufacturing.

Investment in its new business model, including the use of smarter proximity solutions and new technologies, is paying off as businesses turn to Gi Group for support in these areas.

Gi Group offers employers tailored solutions for every stage of their HR needs. Its ability to support clients with workforce planning, compliance and strategic information has proven key to gaining trust and maintaining business continuity during volatile times.

Building a stronger and more agile workforce

Paulo said:

“We have decades of experience we can call on when it comes to supporting our customers to create workforces that are strong, intuitively formed and agile in the face of uncertain economic forces.

“We’ve supported employers and candidates through some of the toughest times, and we’re here to use our voice to elevate the realities facing the jobs market.

“We hope the new PM can use his first weeks in power to support the most important cog in the UK’s hope for the future: a strong and stable labour market.”