Taboo Hair Salon Wellington

The Recession Hits New Zealand's Hairdressing and Beauty
Service Industry - Reported 460 Job Losses Nationwide.

2009 Statistics data shows the full impact of the economic recession on the salon industry.

Recession Hits NZ Salon Industry.

Article by: Chris Fox, Co-director of Taboo Hair Salon - Wellington.

Statistical data supplied by Statistics New Zealand has shown the full
impact of the economic recession on the New Zealand hairdressing and
beauty service industry.

The total recorded employee count nationally for those working in hairdressing and beauty services -
as of February 2008 to February 2009, have shown a significant decrease
of -4.6% over the past year. Accounting for approximately 460 job losses nationwide.

Hairdressing and Beauty Services Industry -
Total Employee Count in 2008 and 2009 - Main City Centres

The statistical data above shows that out of the 4 main city centres Christchurch was the worse affected with an employment decrease of
-9.9% (approximately 110 jobs).

However, what's quite surprising about the data is that despite the fall in employment numbers, the actual number of hairdressing and beauty service businesses/salons nationwide has actually increase over the same period by 1.9%, rising to 3898 up
74 units over the previous year.

Another positive thing to note about the salon industry is that overall it has experienced incredible grown over the past decade.
In February 2000 the total recorded number of salon/businesses providing hairdressing and beauty services were 3000 and employing 6730 people.
Exactly 9 years later, in February 2009 that number had risen to 3898 business units and 9470 employees, a increase of almost 30% in businesses and 40% rise of employees.

Although the salon industry has suffered in the recent economic downturn, compared to other New Zealand industry sectors it's got off quite lightly.
Literally, all the salon operators and staff that I've spoken to were very optimistic and expecting a full economic recovery in the very near future.

Salon SalesNew statistical figures for 2010 won’t be available until late October. However, other economic indicators suggest that the salon industry is steadily improving this year.
For instance, as of this writing -
on the Trademe web site there are currently over 80 advertised job listings nationwide in the hairdressing category and approximately 20 listings for beauticians.

In fact, several salon owners have complained to me that there’s currently
a shortage of qualified senior hair stylists to fill their vacant positions.
Also in recent months, at least in the Wellington region, I’ve observed
a few new salons opening and major refitting upgrades to existing ones.
All strong indicators that consumer demand is increasing and salon owners have confidence investing in the industry.

Information sourced from: Statistics New Zealand -
ANZSIC2006 Business demography table builder.

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