Australia needs labour. Job vacancies in the country are 95% higher today than in Feb 2020. There were over 444k vacant roles as of August 2022, cementing Australia’s alarming labour shortage—second to that of Canada—and the need to address it asap. 

The labour shortage has left many companies in limbo, with about 40% of SMEs (small and medium enterprises) telling NAB that it is severely impacting their business. So, talent solutions company PeopleIn Limited (ASX: PPE) has signed an MoU with TAFE Queensland, the state’s largest training provider, to provide upskilling and placement opportunities to employees and new graduates.

The two companies are aiming to bridge the gap between education and jobs.  

PeopleIN CEO, Ross Thompson, said, “The MoU allows us to deliver on our complete talent solutions offering in which upskilling our workforce and retaining talent are core priorities. Working with one of Australia’s largest VET (vocational education training) providers and specialists in training in these areas means we’re perfectly placed to deliver skilled and experienced candidates where they’re needed most.” 

PeopleIN and TAFE will work together for two years, exploring mutually beneficial opportunities. For instance, PeopleIN might provide placement and labour mobility to TAFE Queensland’s 125k domestic and Asia-Pacific international students and alum; in return, TAFE might provide PeopleIN with upskilling services for its 55k-strong on-hire workforce. All of this would be on a non-exclusive basis.  

Founded in 1996, Albion-based company PeopleIN provides various services, from recruiting to payroll, from its locations in Australia, New Zealand and Singapore. It has a client base of over 4,000 and three segments—Health and Community, Professional Services and Specialist Services—relevant to the Australian economy.

Skills shortages in Australia have almost doubled in the past year. According to the National Skills Commission, in 2022, 286 out of 914 occupations faced a deficit, with many more experiencing shortages depending on different states. Through this collaboration, TAFE and PeopleIN will provide a clear path to skilled employment in the critical sectors in which the Company operates, including healthcare, community services, childcare and the renewables sector. 

Australia has been investing heavily in improving visa processing capabilities to bring in more workers, and PeopleIN claims that it is well-placed to assist with sourcing and recruiting employees. In FY22, the Company’s revenue increased by over 50% on FY21 to $682.4 million, primarily bolstered by organic growth due to staffing shortages and acquisitions. Its profit increased marginally to $31.9 million, impacted by increased expenses. Its cash flow from operating activities increased significantly from $7.5 million in 2021 to over $22 million in 2022. PeopleIN expects this strong performance to continue in 2023, forecasting its EBITDA to range between $62 and $66 million. 

This year, the Company aims to set up a platform, PeopleINNOVATE, to encourage startup funding and wants to hold at least 20% of government contracts.

The TAFE-PeopleIN deal is also a testament to the Company’s mission to increase its Government and Education footprint in FY23.