UK hair salons face recruitment crisis, Gen Z shuns industry | small business

DCovid lockdowns that have forced hairdressers to close for months have taught us to truly appreciate a haircut by a professional, but salons are warning of staff shortages as Gen Z shuns the profession.

The number of apprentices entering hairdressing training has fallen by 70% over the past decade. This, combined with a wave of high street salon closures, means people in the UK will have to wait longer for an appointment in the coming years.

Recruiting new stylists is almost “impossible”, says Josh Wood, a hair colorist and founder of a leading west London salon. “It's a brilliant, brilliant life. Owned a large and profitable business from a council estate in Barnsley. But it is now very difficult to take one; The talent pool is shrinking.”

The statistics are stark. The number of apprentices entering hairdressing training in England alone has fallen from 13,180 in 2015 to 4,160 in 2023, according to Department for Education figures. Last year, 1,520 students completed their apprenticeship in England, up from 8,660 in 2015.

“It's tragic,” says Millie Kendall, chief executive of the British Beauty Council, which champions the £4.6bn UK hair and beauty industry. “Britain is recognized around the world for the quality of its haircuts and the talent of its hair stylists, but this is being threatened by this recruitment crisis.”

One of the problems, according to industry experts, is that hairdressing is perceived by young people as a low-paying profession. Apprenticeships have dwindled as school leavers opt for college, but salon owners complain they are no substitute for on-the-job learning. They say it takes an average of 16 weeks to fill a salon vacancy.

Closing is also a problem. While barbers, nail bars and beauty salons are all lining up, the number of hairdressers is dwindling. According to the local data company, the overall number of hair salons in Great Britain fell by 319 in the year to July 1, 2024, while more than 1,000 beauty salons and nail bars were added.

The UK hairdressing industry has struggled to rebuild its fortunes after a financial crisis caused by prolonged closures during the pandemic. Salons have had to raise their prices, sometimes multiple times, but have difficulty passing on the level of business cost increases, such as energy and wages, to customers during the cost-of-living crisis.

A common complaint is that most small businesses have a few employees but no incentive to expand and hire new employees because of the so-called VAT “cliff edge”.

When a business's taxable turnover reaches £90,000, they will have to charge VAT on sales, which harms their competitiveness, particularly if nearby competitors are not VAT registered, say price fixing stations.

To avoid this, many owners, particularly in less affluent communities, stick below the £90,000 threshold or hire out chairs to freelancers. This situation has led to a demand that the government introduce a graduate system to smooth this transition.

Salons are “an integral part of all our communities,” a hub for social interaction and relief from the stresses of everyday life, says Carolyn Larissi, chief executive of the National Hair and Beauty Federation, the industry's largest trade association. .

Larissi adds that there is a need to recognize and support hair and beauty roles as viable career options for young people. “As a nation we must collectively appreciate the importance of our sector, for its financial contribution to the economy and the well-being of the country,” he says.