The Red Devils are languishing in 10th place and four points adrift of fourth-placed West Ham United after a 1-0 loss to Manchester City last weekend.
United manager Louis van Gaal has spent heavily on new players in the summer transfer window, including Angel di Maria, Daley Blind and Radamel Falcao.
While Giles feels United are in better shape under Van Gaal this season, the former Red Devils midfielder is adamant that there is a lot of work to be done.
“They’re better than they were last year. They’ve been unfortunate with the injuries that they’ve had over the past few weeks,” Giles told Off The Ball.
“The players that they’ve bought will be better than they had last year.
“But there is a long way to go. He has a big job to do. They’re nowhere near finishing fourth at the moment from what we saw against Manchester City last week.
“It is going more in the right direction this year than it was last year.”
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