Hair Care Services NAICS 812111, 812112

May 19, 2026 - New Regulations Pressure Beauty Education

• Proposed Department of Education regulations could put up to 92% of US cosmetology programs at risk of closure, creating a major workforce threat for the US hair care services industry, according to a recent American Salon report. Industry groups warn the new earnings-based accountability rule could eliminate federal financial aid access for roughly 1,400 cosmetology programs, disrupting the pipeline of licensed stylists and salon professionals. Because 70% to 90% of cosmetology students rely on federal aid, widespread school closures could intensify existing labor shortages, raise hiring costs for salons, and reduce industry growth potential. Advocates also argue the rule fails to accurately reflect beauty industry career paths, where professionals often take years to build clientele and income. For hair care businesses, the proposal could limit access to new talent while increasing operational and staffing pressures across salons, spas, and independent beauty service providers.
• According to the Professional Beauty Association’s April 2026 Pro Beauty Pulse, industry sentiment weakened sharply in April as concerns about future workforce development and business conditions intensified. Salon revenue growth remained modest and was driven largely by higher prices rather than increased customer traffic, with client visits slightly down year over year. Commission salons posted 3.65% annual growth in March, while solopreneurs declined 1.87%. The report suggests salons are relying more on pricing and service mix to maintain revenue as consumer demand softens. For hair care businesses, potential beauty school closures could worsen ongoing labor shortages, reduce the pipeline of licensed professionals, and increase competition for stylists in an already challenging operating environment.

• The cost of haircuts increased 3.6% in April 2026 compared to a year ago and fell 0.7% compared to the previous month, according to the Consumer Price Index from the US Bureau of Labor Statistics (BLS). Hair care services employment fell in February 2026 compared to a year ago while labor costs rose, per the BLS. Employment at barber shops and beauty salons fell 2.7% in February 2026 compared to a year ago. Meanwhile, average wages for nonsupervisory employees in the hair, nail, and skin care services industry grew 7.3% in February 2026 year over year, reaching $26.62 per hour.
• Softening demand for hair color services is prompting salons to rely more on pricing and service mix to sustain revenue, according to the recently released KIM Report in Salon Today. The total number of salon color services declined 2.16% in 2025, reflecting more cautious client behavior and longer gaps between appointments. Despite lower volume, color service revenue rose 0.94%, driven by a 3.2% increase in average ticket prices, highlighting strong pricing power. Non-color services such as haircuts and treatments also supported performance, with revenue increasing 2.0%, indicating continued consumer spending on maintenance. The report suggests salons are offsetting softer demand by raising prices, upselling premium services, and focusing on higher-value offerings. For the US hair care services industry, these trends point to a shift toward value-driven growth, where profitability depends more on pricing strategies and service mix than on client volume alone.