cosmetology national Job Demand 2007

Survey Conducted for: N.A.C.C.A.S.

4401 Ford Avenue, Suite 1300

Alexandria, VA 22302 

This National Survey of the Cosmetology Industry found that 53% of salon
owners surveyed have job openings. Salons filled nearly 485,000 open
positions in 2006.

Experienced salon professionals changing positions accounted for 62 % of the
new hires.

Inexperienced professionals with less than one year's experience accounted
for the other 38 %. 182,331 newly trained professionals entering the field
during 2006.

Nearly three-quarters of the salons that tried to fill positions were not able to
find qualified applicants even with recorded significant levels of hiring.

The supply of skilled professionals in the industry continues to fall short of the demand
as a continuous chronic shortage is reported in all earlier surveys of the Cosmetology
Industry. The underestimation by the Bureau of Labor Statistics (BLS) on employment
in the Cosmetology Industry and the findings that the demand for well-trained
professionals in the field outstrips the supply remain constant. Future hiring plans are
robust and the industry is projected to continue growing.

Number of Salons in TEXAS -  28,551

Cosmetology is a sizeable profession, with the national number of professional salon
employees totaling 1,682,641—outnumbering the 1 million lawyers in the nation.

This represents a 5 percent increase (78,139 positions) in the last three years, which
reflects the 18 percent growth in the number of salons.

The cosmetology industry provides a flexible work schedule.

The majority of employees work at least 35 hours a week, the opportunity
exists for part-time employment for those with family or school responsibilities.

A notable portion of the workforce (25 %) is comprised of workers with less
than 18 months of relevant experience (entry-level workers).  

The salon industry employs nearly 1.7 million professionals, over half of whom
are full-time experienced employees who work as cosmetologists. Even with
mobility of these professionals within the industry, there were more vacated
positions in 2006 than well-prepared entrants to fill the positions.

Business ownership opportunities are easier

A sizeable number of employees (27 %) leave each year with plans to open
their own salon, work from their home, or rent a booth and become
independent contractors thus proving that this industry provides easier
options to starting one’s own business. The increasing number of small, new businesses
in the field suggests that there are very real opportunities available for individuals who
want to start their own business.

54% of salon owners reported they had job openings

Salon owners have jobs waiting, but are not able to find properly trained
employees. The salon industry continues to offer opportunities to qualified job seekers,
both experienced and entry-level. In 2006, the turnover rate for the salon industry -  the
number of openings divided by the number of employees - was about 36 %. The typical
salon replaced more than one of every three employees during the year. This translated
to numerous job opportunities for qualified job seekers. More than one quarter of the
182,331 open positions were filled with inexperienced workers.

Salaries and other compensation

Salaries examined indicate that the average annual salary range in the United
States is $30,000 to $48,000 for entry level employment without tip inclusion. Some
major chain salons offer other compensation such as 401K’s, Insurance, Paid Vacations,
Sales Perks and Advancement Training.

For expanded version of report go to naccas@naccas.org click on 2007 Job Demand
survey