Hair Care Services NAICS 812111, 812112

Aug 26, 2025 - Haircut Costs Up Year Over Year

• Consumer prices for haircuts and other personal care services increased 3.8% in July 2025 compared to a year ago and were 0.1% higher than the previous month, according to Consumer Price Index data from the US Bureau of Labor Statistics (BLS). Hair care services employment was flat in June 2025 year over year, per the BLS. In the past decade, industry employment has fallen 7.6%, much lower than the 13.2% growth in overall private employment. Average wages for nonsupervisory employees in the hair, nail, and skin care services industry grew 7.8% in June 2025, reaching $26.30 per hour.
• Indicators measuring the collective mood of US consumers show mixed signals, with consumer confidence levels slightly up and consumer sentiment falling. Consumer confidence levels, an indicator of discretionary expenditures, improved in July 2025, month over month, rising by 2 points, according to the Consumer Confidence Index. Consumer confidence levels have stabilized since May but remain lower than last year’s, according to The Conference Board, which publishes the monthly index. July’s gain can be attributed to consumers over 35 years old and shared across all income groups, except the lowest income group earning below $15K. In addition, the consumer sentiment index from the University of Michigan dropped in August 2025 for the first time in four months. The index fell to 58.6 in preliminary August data from 61.7 in July. Year-ahead inflation expectation results were higher monthly, as consumers convey lingering anxiety about prices amid tariff impacts. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.

• According to National Public Radio (NPR), tipped workers in the beauty industry will be able to deduct up to $25,000 in tips annually from their taxable income following a provision included in President Trump’s recently signed spending and tax package that passed Congress. After the $25,000 is met, tips will be federally taxed. Also, workers who make more than $150,000 are not eligible for the deduction. According to estimates from the White House, tipped workers are expected to save about $1,700 a year on average. The law will be phased out at the end of 2028, if not extended by Congress. Tipped work is about 2% of all US employment, according to Yale Budget Lab’s Martha Gimbel. Congress has also extended the availability of the 45B FICA tip tax credit to beauty service industry employers, which allows business owners to receive dollar-for-dollar tax credits for their portion of payroll taxes.
• According to American Salon, three more states have mandated textured hair education for their state-licensed hair care professionals, bringing the total to eight states with similar regulations. Vermont, Maine, and Washington have passed recent legislation requiring their cosmetology schools to update their curricula to include education on caring for hair of all textures. Existing states with similar mandates are California, Minnesota, Connecticut, New York, and Louisiana. Louisiana passed the first legislation on the topic in 2021. Before then, textured hair had not been included in most cosmetology programs in mainstream US beauty schools, which led to a lack of equitable access to professionally trained and licensed stylists. According to American Salon, more than 65% of Americans have curly, coily, or wavy hair. According to the Professional Beauty Association’s Government Affairs Director Myra Redding, “These continued victories fuel the Texture Education Collective momentum as we advocate for similar legislation across the nation, promoting consistent standards and excellence in beauty education from coast to coast.”