EMSI Labour Market Information:
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1 EMSI Labour Market Information: Hairdressing and Beauty Salon Managers and Proprietors, Hairdressers, Barbers COMMISSIONED BY THE: Andy Durman Vice President for UK Operations, EMSI PAGE 1
2 Summary analysis of key labour market information from EMSI on the following occupations: SOC DESCRIPTION 1233 Hairdressing and beauty salon managers and proprietors 6221 Hairdressers, barbers Employment trends DESCRIPTION CHANGE % CHANGE ANNUAL OPENINGS Hairdressing and beauty salon managers and proprietors 5,418 5,251 4,934 4,986 5,006 5, % 251 Hairdressers, barbers 66,341 68,660 63,353 63,404 62,783 63,157-3,184-5% 3,040 Total Employees 71,760 73,911 68,287 68,390 67,789 68,229-3,531-5% 3,292 Estimated Employment 85,429 87,989 81,294 81,417 80,701 81,225-4,204-5% 3,919 EMSI data captures labour market data for employees only and does not include self-employment data. Hairdressing in one key occupation with a high prevalence of self-employment and so needs to be considered in the wider labour market context. According to 2012 BRES data sourced from NOMIS approximately 16% of employment in the hairdressing sector can be accounted for by formal selfemployment (sole traders who have registered for VAT and/or PAYE purposes). As such I have up scaled the total employees to create and employment estimate. Note that this would not include informal self employment. Employment in hairdressing occupations has fallen steadily since 2006 and is projected to continue to do so over future years, although the rate of decline is projected to slow from 2015 onwards. That is not PAGE 2
3 to say however that there are no employment opportunities in the labour market, quite the contrary. On average there are expected to be over 3,000 openings for hairdressers a year this is because replacement demand (people leaving the occupation voluntarily) outweighs the structural declines. That said, it is important to consider the number of new entrants to the labour market (graduates) compared to the annual opening to assess whether there is an oversupply. Inverse Staffing Patterns INDUSTRY OCCUPATION GROUP IN INDUSTRY (2012) % OF OCCUPATION GROUP IN INDUSTRY (2012) % OF TOTAL IN INDUSTRY (2012) Hairdressing and other beauty treatment (9602) 66, % 72.9% Retail sale of cosmetic and toilet articles in specialised stores (4775) % 1.4% Technical and vocational secondary education (8532) % 0.2% Other personal service activities n.e.c. (9609) % 0.2% Hotels and similar accommodation (5510) % 0.1% Unsurprisingly, the majority (98%) of hairdressers are employed in the hairdressing industry. But it is interesting to note other industries that employ these occupations. These trends do not look too promising in terms of labour market demand for hairdressers, but we must consider the underlying desire for people to study this vocational area. My personal opinion is that we should harness any desire to engage people, particularly young people, in learning. If they were not to learn in a subject area they are interested in then there is a high likelihood they will not learn at all. The following graph shows just how important increasing education levels is in terms of employment opportunity and earnings potential: PAGE 3
4 So with a strong pipeline of interest in studying this vocational area but limited labour market potential, we need to find a way of harnessing this interest but channelling it into areas with greater labour market need. The best way to achieve this is to understand the transferrable skills that are being developed when training to become a hairdresser and identify other occupations that require similar skillsets. To better understand this EMSI have harnessed a US research programme called O*NET and translated it for use in the UK. O*NET measures every standard occupation in the US against a set of core skills, competencies and knowledge requirements, measuring them using a scale of 1 to 100 on the level of importance and expertise to the role of that component. We have weighted scores to reflect slight differences in comparable occupations in the US and UK and have focused on harnessing the more transferable and less technically specific components to maximise the accuracy of such a translation. O*NET provides the following competency breakdown for Hairdressers, barbers occupation: Competencies - Knowledge KNOWLEDGE IMPORTANCE LEVEL Customer and Personal Service Chemistry Education and Training English Language Sales and Marketing Administration and Management Mathematics Psychology Design Personnel and Human Resources Communications and Media Production and Processing Public Safety and Security Biology Clerical Law and Government Therapy and Counselling Physics Philosophy and Theology PAGE 4
5 Based on this transferrable skills profile we can identify other occupations that have similar skills requirements to identify potential alternative career paths to pursue based on the development of a core transferrable skill set: COMPATIBILITY INDEX OCCUPATION MEDIAN HOURLY EARNINGS CHANGE ESTIMATED ANNUAL OPENINGS 97 Beauticians and related occupations ,811 4,601 1, Leisure and theme park attendants ,028 3,325 1, Amusement and recreation attendants ,476 7,051 2, Market and street traders and assistants , Collector salespersons and credit agents , Textile process operatives ,331-2, Caretakers ,792 8,540 3, Assemblers (electrical products) ,652-9,383 1, Housekeepers and related occupations ,879 9,377 2, Upholsterers ,573-2, Labourers in foundries , Window cleaners ,607 1, Debt, rent and other cash collectors ,679 1,717 1, Road sweepers ,193 2, Playgroup leaders/assistants ,636 6,520 2, Referees and other sports officials ,525 8,380 2, Shelf fillers ,561-2,797 4, Retail cashiers and check-out operators ,176-1,151 9, Leather and related trades ,800-1, Educational assistants ,884 89,680 24, Counter clerks ,688-20,463 5, Funeral attendants ,727 2, Launderers, dry cleaners, pressers ,801-3, TOTAL 1,371, ,372 66,326 PAGE 5
6 Based on occupations with a compatibility score of 90 or more (100 being fully compatible), we can see there are almost 1.4m jobs in occupations with broadly similar skills requirements in England, occupations that are projected to have added over 100,000 new jobs between 2006 and And when factoring in replacement demand, on average these occupations require 66,000 openings to be filled a year. Of course, a hairdressing graduate may not necessarily walk straight into any one of these other occupations, but a detailed comparison of skills profiles between a hairdresser and an Educational assistant, for example, will highlight where skills requirements are covered and where skills gaps remain. With this insight students and curriculum leaders can help identify opportunities to top up both transferrable skills and technical requirements around the core hairdressing offer to broaden employment opportunities for students, providing alternative routes to employment than the limited opportunities of aiming directly at the hairdressing trade, Comparing Hairdressers, barbers with Educational assistants: WAGES O*NET CODE TITLE PCT. 10 PCT. 25 MEDIAN PCT. 75 PCT Educational assistants Hairdressers, barbers Educational assistants consistently earn more than hairdressers, barbers. PAGE 6
7 Competency Requirements - Knowledge KNOWLEDGE SOURCE LEVEL TARGET LEVEL GAP TARGET IMPORTANCE Customer and Personal Service Education and Training English Language Public Safety and Security Psychology Sociology and Anthropology Philosophy and Theology Geography Clerical Mathematics Medicine and Dentistry Computers and Electronics Communications and Media Therapy and Counselling Law and Government Transportation Personnel and Human Resources Chemistry History and Archaeology Administration and Management Economics and Accounting Sales and Marketing Design Fine Arts Production and Processing Foreign Language Biology Telecommunications Physics Food Production Mechanical Engineering and Technology Building and Construction The larger red blocks identify key skills development requirements to transition from hairdressers, barbers to educational assistants. In addition to the transferable skills requirements there will be a number of more technical and legislative requirements to build around the transferrable skills development. PAGE 7
8 Likewise, we can explore the top occupations based on projected job openings and explore how compatible these are with the transferrable skills of a Hairdresser, barber: OCCUPATION MEDIAN HOURLY EARNINGS CHANGE ESTIMATED ANNUAL OPENINGS COMPATIBILITY INDEX Sales and retail assistants ,144,639 11,307 38, Care assistants and home carers ,378 38,174 31, Cleaners, domestics ,855 19,393 25, Sales managers ,279 28,728 23, Marketing managers ,279 28,728 23, General office assistants/clerks ,792-1,695 22, Nurses ,934 18,783 19, Educational assistants ,884 18,863 18, Accounts and wages clerks, book-keepers, other financial clerks Primary and nursery education teaching professionals ,717-1,625 17, ,349 16,433 16, It is interesting to note that some of the most in demand occupations forecasted for are highly compatible with the skills required as a hairdresser, barber. Very few people argue against the employment potential of archaeology graduates from a Russell Group university, yet this all works on the same principle of showing a capacity to learn and the development of a set of skills that can be transferred into alternative environments. PAGE 8
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