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Gi Group urges Prime Minister to back small firms as temporary worker demand grows

The recruiter said Burnham’s early moves, including the VAT cut for pubs and leisure venues, have created a ‘golden opportunity’ to take bold steps for UK employment.

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Paulo canoa country manager gi group uk
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Gi Group has called on Prime Minister Andy Burnham to act quickly to support the jobs market.

The recruiter said Burnham’s early moves, including the VAT cut for pubs and leisure venues, have created a ‘golden opportunity’ to take bold steps for UK employment.

Recent Office for National Statistics (ONS) data showed job vacancies in the UK fell 0.9% to 712,000 in the last quarter compared to January to March 2026. 

Gi Group stated that larger businesses are adapting to economic uncertainty, but smaller companies are holding back on hiring and are more likely to pause recruitment or replace permanent roles with temporary positions.

Paulo Canoa (pictured), 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. 

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“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.”

Canoa added: “As a result, this is the first time in three years we have seen a trend for increased demand in temporary workers. 

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“For our industry this is a double-edged sword – while we thrive from a buoyant temporary market, we also want to see business’s confidence in hiring across the board return to pre-pandemic levels. 

“And we’re a long way from that at the moment.”

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He said: “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. 

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“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 all and 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.”

He added: “We welcome the new Prime Minister into post, but what we would like to see from government is increased support for smaller businesses so that they can confidently call on the flexibility temporary work provides, like 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.”

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He said: “We have decades of experience we can call on when it comes to supporting our customers to create workforces which 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 real realities facing the jobs market. 

“We hope the new PM can take 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.”

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