EMSI Labour Market Information: Hairdressing and Beauty Salon Managers and Proprietors, Hairdressers, Barbers COMMISSIONED BY THE: Andy Durman Vice President for UK Operations, EMSI andyd@ 07720 641651 PAGE 1
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 2006 2008 2010 2012 2014 2016 CHANGE % CHANGE ANNUAL OPENINGS Hairdressing and beauty salon managers and proprietors 5,418 5,251 4,934 4,986 5,006 5,072-346 -6% 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
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) 66,671 97.5% 72.9% Retail sale of cosmetic and toilet articles in specialised stores (4775) 354 0.5% 1.4% Technical and vocational secondary education (8532) 309 0.5% 0.2% Other personal service activities n.e.c. (9609) 209 0.3% 0.2% Hotels and similar accommodation (5510) 166 0.2% 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
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 73 59 Chemistry 52 46 Education and Training 48 39 English Language 55 39 Sales and Marketing 44 38 Administration and Management 49 32 Mathematics 34 28 Psychology 28 26 Design 31 23 Personnel and Human Resources 19 19 Communications and Media 23 17 Production and Processing 15 15 Public Safety and Security 21 13 Biology 17 13 Clerical 21 13 Law and Government 22 13 Therapy and Counselling 13 12 Physics 15 11 Philosophy and Theology 10 10 PAGE 4
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 2012 2006-2016 CHANGE 2006-2016 ESTIMATED ANNUAL OPENINGS 97 Beauticians and related occupations 7.41 22,811 4,601 1,396 94 Leisure and theme park attendants 6.86 21,028 3,325 1,147 92 Amusement and recreation attendants 7.37 45,476 7,051 2,468 92 Market and street traders and assistants 7.71 2,977-25 132 92 Collector salespersons and credit agents 9.33 4,173 129 202 92 Textile process operatives 8.55 7,331-2,112 258 92 Caretakers 8.97 68,792 8,540 3,486 92 Assemblers (electrical products) 8.47 26,652-9,383 1,073 91 Housekeepers and related occupations 7.31 49,879 9,377 2,740 91 Upholsterers 9.69 6,573-2,151 309 91 Labourers in foundries 9.09 1,458-139 59 91 Window cleaners 7.45 5,607 1,997 481 91 Debt, rent and other cash collectors 8.07 31,679 1,717 1,479 91 Road sweepers 8.46 9,193 2,348 631 90 Playgroup leaders/assistants 7.13 41,636 6,520 2,206 90 Referees and other sports officials 12.51 42,525 8,380 2,246 90 Shelf fillers 7.86 109,561-2,797 4,302 90 Retail cashiers and check-out operators 6.87 257,176-1,151 9,507 90 Leather and related trades 10.23 2,800-1,230 167 90 Educational assistants 8.30 438,884 89,680 24,516 90 Counter clerks 10.37 140,688-20,463 5,892 90 Funeral attendants 9.66 11,727 2,624 789 90 Launderers, dry cleaners, pressers 6.31 22,801-3,466 840 TOTAL 1,371,427 103,372 66,326 PAGE 5
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 2016. 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. 90 6124.00 Educational assistants 6.54 7.22 8.30 9.94 11.89 6221.00 Hairdressers, barbers 5.58 5.93 6.63 8.06 10.15 Educational assistants consistently earn more than hairdressers, barbers. PAGE 6
Competency Requirements - Knowledge KNOWLEDGE SOURCE LEVEL TARGET LEVEL GAP TARGET IMPORTANCE Customer and Personal Service 59 51 0 60 Education and Training 39 39 0 46 English Language 39 37 0 50 Public Safety and Security 13 34-21 45 Psychology 26 33-7 38 Sociology and Anthropology 4 30-26 33 Philosophy and Theology 10 26-16 24 Geography 0 23-23 25 Clerical 13 23-10 20 Mathematics 28 22 0 28 Medicine and Dentistry 5 19-14 25 Computers and Electronics 8 19-11 18 Communications and Media 17 19-2 21 Therapy and Counselling 12 19-7 27 Law and Government 13 18-5 24 Transportation 3 17-14 21 Personnel and Human Resources 19 17 0 25 Chemistry 46 16 0 17 History and Archaeology 3 16-13 16 Administration and Management 32 14 0 22 Economics and Accounting 9 12-3 16 Sales and Marketing 38 11 0 13 Design 23 11 0 12 Fine Arts 1 10-9 13 Production and Processing 15 8 0 11 Foreign Language 2 8-6 15 Biology 13 7 0 9 Telecommunications 5 6-1 12 Physics 11 5 0 8 Food Production 0 5-5 8 Mechanical 8 4 0 10 Engineering and Technology 7 2 0 5 Building and Construction 0 1-1 5 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
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 2012 2013-2018 CHANGE 2013-2018 ESTIMATED ANNUAL OPENINGS COMPATIBILITY INDEX Sales and retail assistants 6.66 1,144,639 11,307 38,037 81 Care assistants and home carers 7.85 680,378 38,174 31,022 88 Cleaners, domestics 6.50 663,855 19,393 25,793 88 Sales managers 22.08 529,279 28,728 23,720 55 Marketing managers 22.08 529,279 28,728 23,720 57 General office assistants/clerks 9.40 618,792-1,695 22,768 74 Nurses 15.95 452,934 18,783 19,048 43 Educational assistants 8.30 438,884 18,863 18,888 90 Accounts and wages clerks, book-keepers, other financial clerks Primary and nursery education teaching professionals 10.91 475,717-1,625 17,527 68 22.13 371,349 16,433 16,636 42 It is interesting to note that some of the most in demand occupations forecasted for 2013-18 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