- HMRC Survey of Personal Incomes (FOI2023/51378, FOI2024/200347, FOI2026/78433)
- HMRC PAYE Real Time Information Data (FOI2023/51378, FOI2026/78433)
- HMRC VAT Registration Data (FOI2024/15284)
- ONS Labour Force Survey
- ONS Annual Population Survey, occupation-based self-employment (FOI-2026-3659, 17 August 2026)
- ONS ad hoc release: Hairdressing and beauty treatment by turnover size, 2025 (19 May 2026, IDBR)
Classification: SIC 96020 (Hairdressing and other beauty treatment) for the primary HMRC series; SOC 6221/6222 and IDBR SIC 96.02 for the ONS cross-check in Section 8 — see that section for important classification differences.
Data Period: Tax years 2018-19 through 2024-25 (PAYE); 2018-19 through 2023-24 (self-employed); ONS cross-check data to March–August 2026.
Analysis Date: October 2025; updated August 2026
EXECUTIVE SUMMARY
This report analyses employment and workforce structure in the UK hair and beauty sector using official HMRC tax data, cross-checked in Section 8 against independent ONS occupation-based and enterprise-register data.
Total Workforce 2023-24
187,000 PAYE employed
210,000 self-employed
Latest PAYE (2024-25)
Down 1,000 on 2023-24
Self-employed 2024-25 not yet published
PAYE Employment
2018-19 to 2024-25
-7.5% decline
Self-Employment
2018-19 to 2023-24
+11.1% growth
Key Findings
Workforce Composition (2023-24, latest year with both series published):
- Total workforce: 397,000 people
- PAYE employees: 187,000 (47%)
- Self-employed: 210,000 (53%)
- Net change 2018-19 to 2023-24: +7,000 (+1.8%)
Employment Trends:
- PAYE employment declined by 15,000 (-7.5%) from 2018-19 to 2024-25
- Self-employment grew by 21,000 (+11.1%) from 2018-19 to 2023-24, and this is now confirmed data rather than a carried-forward estimate
- Shift from traditional employment to self-employment
- Total workforce remained stable to growing, with a continued gradual PAYE decline through 2024-25
COVID-19 Impact:
- 2020-21: Temporary decline of 25,000 PAYE jobs
- 2021-22: Recovery of 20,000 PAYE jobs
- Self-employment remained resilient throughout
- Workforce exceeded pre-pandemic levels by 2021-22
Independent Cross-Check (Section 8):
- ONS occupation-based (APS) self-employment data and ONS enterprise-register (IDBR) data, both obtained via FOI in 2026, are consistent with the gradual HMRC trend above — not with third-party forecasts of a sharp, near-total collapse in employed roles.
1. OFFICIAL HMRC EMPLOYMENT DATA
Complete Workforce Statistics
| Tax Year | PAYE Employees | Self-Employed | Total Workforce | Change vs Previous |
|---|---|---|---|---|
| 2018-19 | 201,000 | 189,000 | 390,000 | Baseline |
| 2019-20 | 201,000 | 201,000 | 402,000 | +12,000 |
| 2020-21 | 175,000 | 202,000 | 377,000 | -25,000 (COVID) |
| 2021-22 | 195,000 | 210,000 | 405,000 | +28,000 |
| 2022-23 | 188,000 | 210,000 | 398,000 | -7,000 |
| 2023-24 | 187,000 | 210,000 | 397,000 | -1,000 |
| 2024-25 | 186,000 | 210,000* | 396,000* | -1,000 |
| Net Change 2018-19 to 2024-25 | -15,000 | +21,000 | +6,000 | +1.5% |
*Self-employment data for 2024-25 not yet published; 2023-24 figure (210,000, confirmed) carried forward for this row only. 2022-23 and 2023-24 self-employed figures shown above are both now confirmed HMRC data, not estimates.
Source: HMRC Real Time Information (PAYE), HMRC Survey of Personal Incomes (Self-Employed). PAYE 2023-24/2024-25 and self-employed 2022-23/2023-24 per FOI2026/78433 (7 August 2026).
Workforce Composition
PAYE Employment:
- 2018-19: 201,000 employees
- 2024-25: 186,000 employees (most recent published year)
- Change: -15,000 (-7.5%)
- Share of workforce: 47% (2024-25, using 2023-24 self-employed figure)
Self-Employment:
- 2018-19: 189,000 self-employed
- 2023-24: 210,000 self-employed (confirmed; matches 2022-23 and 2021-22)
- Change: +21,000 (+11.1%)
- Share of workforce: 53%
Total Workforce:
- 2018-19: 390,000 people
- 2023-24: 397,000 people (latest year with both series confirmed)
- Net change: +7,000 (+1.8%)
2. REGIONAL EMPLOYMENT PATTERNS
PAYE Employment by Region
| Region | 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 | Change |
|---|---|---|---|---|---|---|---|---|
| London | 34,000 | 35,000 | 30,000 | 35,000 | 34,000 | 35,000 | 35,000 | +1,000 |
| South East | 29,000 | 29,000 | 26,000 | 28,000 | 27,000 | 27,000 | 27,000 | -2,000 |
| North West | 22,000 | 21,000 | 19,000 | 21,000 | 20,000 | 20,000 | 20,000 | -2,000 |
| East of England | 19,000 | 19,000 | 16,000 | 18,000 | 17,000 | 17,000 | 17,000 | -2,000 |
| Scotland | 17,000 | 17,000 | 15,000 | 16,000 | 16,000 | 15,000 | 15,000 | -2,000 |
| West Midlands | 16,000 | 16,000 | 14,000 | 16,000 | 15,000 | 15,000 | 15,000 | -1,000 |
| South West | 15,000 | 15,000 | 13,000 | 15,000 | 14,000 | 13,000 | 13,000 | -2,000 |
| Yorkshire & Humber | 14,000 | 14,000 | 12,000 | 13,000 | 13,000 | 13,000 | 13,000 | -1,000 |
| East Midlands | 13,000 | 13,000 | 11,000 | 12,000 | 12,000 | 12,000 | 12,000 | -1,000 |
| North East | 8,000 | 8,000 | 7,000 | 8,000 | 8,000 | 8,000 | 8,000 | 0 |
| Wales | 8,000 | 8,000 | 7,000 | 8,000 | 7,000 | 7,000 | 7,000 | -1,000 |
| Northern Ireland | 6,000 | 6,000 | 5,000 | 5,000 | 5,000 | 5,000 | 4,000 | -2,000 |
| UK TOTAL | 201,000 | 201,000 | 175,000 | 195,000 | 188,000 | 187,000 | 186,000 | -15,000 |
Source: HMRC Real Time Information, PAYE Schemes (FOI2023/51378, Table 3; FOI2026/78433 for 2023-24 and 2024-25). Change column is 2018-19 to 2024-25.
Self-Employment by Region
| Region | 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | Change |
|---|---|---|---|---|---|---|---|
| South East | 24,000 | 27,000 | 27,000 | 28,000 | 28,000 | 27,000 | +3,000 |
| North West | 22,000 | 25,000 | 24,000 | 25,000 | 24,000 | 24,000 | +2,000 |
| East of England | 22,000 | 22,000 | 23,000 | 24,000 | 24,000 | 25,000 | +3,000 |
| London | 19,000 | 21,000 | 20,000 | 20,000 | 20,000 | 19,000 | 0 |
| Yorkshire & Humber | 18,000 | 18,000 | 18,000 | 19,000 | 19,000 | 18,000 | 0 |
| South West | 17,000 | 18,000 | 19,000 | 19,000 | 19,000 | 21,000 | +4,000 |
| West Midlands | 15,000 | 16,000 | 16,000 | 18,000 | 19,000 | 18,000 | +3,000 |
| East Midlands | 15,000 | 15,000 | 16,000 | 16,000 | 17,000 | 17,000 | +2,000 |
| Scotland | 14,000 | 15,000 | 15,000 | 15,000 | 16,000 | 16,000 | +2,000 |
| Wales | 8,000 | 9,000 | 9,000 | 9,000 | 9,000 | 9,000 | +1,000 |
| North East | 7,000 | 8,000 | 8,000 | 9,000 | 9,000 | 9,000 | +2,000 |
| Northern Ireland | 7,000 | 7,000 | 7,000 | 7,000 | 7,000 | 8,000 | +1,000 |
| UK TOTAL | 189,000 | 201,000 | 202,000 | 210,000 | 210,000 | 210,000 | +21,000 |
Source: HMRC Survey of Personal Incomes (FOI2023/51378 Table 2, FOI2024/200347, FOI2026/78433 for 2022-23 and 2023-24). Change column is 2018-19 to 2023-24.
Regional Analysis
Common Patterns:
- All regions show similar trends
- PAYE employment: modest declines (-1,000 to -2,000 typically)
- Self-employment: growth in most regions
- Consistent shift from employment to self-employment across UK
Notable Variations:
- North East: PAYE employment stable throughout; London up slightly overall (+1,000) despite a dip in 2020-21
- South West: Largest self-employment growth over the full period (+4,000), overtaking South East, which slipped back slightly in 2023-24
- Northern Ireland: PAYE fell to 4,000 in 2024-25 (down from a steady 5,000), the only region to move in 2024-25 alongside London holding flat
3. COVID-19 IMPACT AND RECOVERY
PAYE Employment Through Pandemic
| Year | PAYE | Change | % Change | Context |
|---|---|---|---|---|
| 2019-20 | 201,000 | - | - | Pre-COVID baseline |
| 2020-21 | 175,000 | -26,000 | -12.9% | COVID lockdowns |
| 2021-22 | 195,000 | +20,000 | +11.4% | Strong recovery |
| 2022-23 | 188,000 | -7,000 | -3.6% | Post-recovery adjustment |
| 2023-24 | 187,000 | -1,000 | -0.5% | Continued gradual decline |
| 2024-25 | 186,000 | -1,000 | -0.5% | Continued gradual decline |
Self-Employment Resilience
| Year | Self-Employed | Change | % Change |
|---|---|---|---|
| 2019-20 | 201,000 | - | - |
| 2020-21 | 202,000 | +1,000 | +0.5% |
| 2021-22 | 210,000 | +8,000 | +4.0% |
| 2022-23 | 210,000 | 0 | 0.0% |
| 2023-24 | 210,000 | 0 | 0.0% |
Self-employment has now held flat at 210,000 for three consecutive published years (2021-22 through 2023-24).
Total Workforce Recovery
| Year | Total | Change | % Change |
|---|---|---|---|
| 2019-20 | 402,000 | - | - |
| 2020-21 | 377,000 | -25,000 | -6.2% |
| 2021-22 | 405,000 | +28,000 | +7.4% |
| 2022-23 | 398,000 | -7,000 | -1.7% |
| 2023-24 | 397,000 | -1,000 | -0.3% |
2024-25 total not shown: self-employment for 2024-25 is not yet published. PAYE alone continued to 186,000 in 2024-25 (see Section 1).
Recovery Pattern
2020-21 (COVID Impact):
- PAYE employment declined by 26,000 (-12.9%)
- Self-employment remained stable (+1,000)
- Total workforce declined by 25,000 (-6.2%)
2021-22 (Recovery):
- PAYE employment recovered 20,000 (+11.4%)
- Self-employment grew 8,000 (+4.0%)
- Total workforce exceeded pre-pandemic levels
2022-23 (Post-Recovery):
- Slight PAYE decline of 7,000 (-3.6%)
- Total workforce remained above 2018-19 baseline
2023-24 and 2024-25 (Current Trend):
- PAYE continued a gradual, low single-digit decline: -1,000 (-0.5%) in each of the two most recent years
- Self-employment plateaued at 210,000, unchanged for three consecutive published years
- No evidence of acceleration or collapse in either series
4. INTERNATIONAL COMPARISONS
Employment Structure by Country
| Country | % Self-Employed | % Employed | Year |
|---|---|---|---|
| USA | 58% | 42% | 2023 |
| Italy | 55% | 45% | 2023 |
| United Kingdom | 52% | 48% | 2023 |
| Spain | 48% | 52% | 2023 |
| Netherlands | 45% | 55% | 2023 |
| Germany | 41% | 59% | 2023 |
| France | 38% | 62% | 2023 |
| Poland | 34% | 66% | 2023 |
Source: Eurostat Labour Force Survey, OECD Statistics
International Context
- UK self-employment rate (52%) is mid-range internationally
- USA has higher self-employment rate (58%)
- Range across developed economies: 34-58%
- Global trend toward increased self-employment in personal services
5. METHODOLOGY & DATA SOURCES
Primary Data Sources
1. HMRC PAYE Employment Data (FOI2023/51378, Table 3; FOI2026/78433, Table 1):
- Real Time Information from PAYE schemes
- Count of individuals with payrolled employment
- SIC 96020 (Hairdressing and other beauty treatment)
- Tax years 2018-19 through 2024-25
- Regional breakdown by employee residence
2. HMRC Self-Employment Data (FOI2023/51378 Table 2, FOI2024/200347, FOI2026/78433 Table 2):
- Survey of Personal Incomes
- Individuals with self-employment income from SIC 96020
- Tax years 2018-19 through 2023-24
- Regional breakdown
3. HMRC VAT Registration Data (FOI2024/15284):
- VAT registered businesses in SIC 96020
- Tax years 2018-19 through 2022-23
- Regional breakdown and turnover data
4. ONS Annual Population Survey, occupation-based (FOI-2026-3659):
- Self-employment estimates by SOC 2020 occupation code
- Covers SOC 6221 (Hairdressers and barbers) and SOC 6222 (Beauticians and related occupations)
- 12-month period April 2025 to March 2026
- See Section 8 for full detail and classification caveats
5. ONS IDBR ad hoc release, Hairdressing and beauty treatment by turnover size, 2025 (19 May 2026):
- Enterprise count, employment, employees and turnover for SIC 96.02
- Data as at March 2025, by turnover band
- IDBR-based; not an accredited official statistics source — see Section 8
Data Quality and Limitations
Strengths:
- All data from official UK government sources
- HMRC data is tax-based (comprehensive coverage)
- Covers complete population, not samples
- Consistent methodology across years
Limitations:
- Self-employment data lags PAYE by one tax year (latest available: 2023-24, versus 2024-25 for PAYE)
- Regional data rounded to nearest thousand
- Some misclassification possible (incorrect SIC codes)
- Doesn't capture under-18 workforce
- Doesn't separate hair services from beauty services
- The Section 8 cross-check uses occupation (SOC) and enterprise-register (IDBR) classifications that are not directly equivalent to the SIC 96020 HMRC series used elsewhere on this page — see Section 8 for detail
Verification Process
- PAYE data cross-referenced with VAT business counts
- Self-employment data cross-referenced with Companies House records
- Regional totals reconciled across data sources
- Trends compared to industry reports for validation
- International data from Eurostat/OECD for context
- HMRC industry-based trend independently cross-checked against ONS occupation-based and enterprise-register data (Section 8)
FOI Reference Numbers
FOI2023/51378 (31 July 2023):
- Table 1: VAT registered businesses
- Table 2: Self-employed persons (2018-19 to 2020-21)
- Table 3: PAYE employees (2018-19 to 2022-23)
FOI2024/200347 (30 October 2024):
- Table 1: Self-employed persons (2021-22 update)
- Table 2: Flat Rate Scheme businesses
FOI2024/15284 (7 March 2024):
- VAT registrations and turnover data
- Regional breakdowns (2022-23)
FOI2026/78433 (7 August 2026):
- Table 1: PAYE employees by region, 2023-24 and 2024-25
- Table 2: Self-employed persons (SPI) by region, 2022-23 and 2023-24
FOI-2026-3659 (17 August 2026, ONS):
- Occupation-based (SOC 6221/6222) self-employment estimates, April 2025 to March 2026
- Confirmation that no LFS/APS self-employment breakdown is published at SIC 96020 level
- List of ONS ad hoc IDBR releases for SIC 96.02 since January 2024
6. ONS OCCUPATION-BASED & ENTERPRISE CROSS-CHECK
The data in Sections 1–7 above is drawn from HMRC administrative sources (PAYE Real Time Information and the Survey of Personal Incomes), classified by SIC 96020. This section presents two additional, independently-sourced ONS data points as a cross-check against that primary series. These use different classification systems — occupation (SOC) and business register (IDBR), rather than HMRC's tax-based SIC industry coding — and are not directly comparable to, or combinable with, the HMRC figures above. See the caution notes below each table.
8.1 Occupation-based self-employment (ONS APS, SOC codes)
| Occupation (SOC 2020) | Self-Employed | Period |
|---|---|---|
| 6221: Hairdressers and barbers | 87,000 | Apr 2025 – Mar 2026 |
| 6222: Beauticians and related occupations | 63,200 | Apr 2025 – Mar 2026 |
| Combined (6221+6222) | 150,200 | Apr 2025 – Mar 2026 |
Source: ONS Annual Population Survey, via FOI response "Self-employment trends in the hairdressing and barbering sector: 2026" (FOI-2026-3659, released 17 August 2026).
These figures are occupation-based (SOC), not industry-based (SIC 96020). They count people who self-report a hairdressing/barbering/beauty occupation in the APS, in any industry, and exclude SOC 1253 (salon managers and proprietors). ONS's FOI response states that LFS/APS occupation and industry classifications "may differ from legal, tax or accounting definitions," and confirms that no LFS/APS self-employment breakdown is published at SIC 96020 level — the most detailed published industry breakdown is Sections R, S and T combined (Arts, entertainment and recreation; Other service activities; Activities of households as employers). This series should not be summed with, or reconciled against, the HMRC SIC 96020 figures in Sections 1–3. It is presented here as an independent check on direction of travel only.
8.2 Enterprise count and IDBR employment gap
| Metric | Figure | Period |
|---|---|---|
| Enterprise count (VAT/PAYE based, SIC 96.02) | 50,400 | March 2025 |
| IDBR "employment" | 178,178 | March 2025 |
| IDBR employees | 161,261 | March 2025 |
| Gap (working owners / sole traders / partners) | ~16,900 | March 2025 |
Source: ONS ad hoc release, "Hairdressing and beauty treatment by turnover size, 2025," 19 May 2026. Turnover figures in the underlying release are flagged by ONS itself as unverified and are not reproduced here for that reason.
This release uses Inter-Departmental Business Register (IDBR) data. ONS's FOI response states that IDBR employment and turnover figures are not designated accredited official statistics, and that BRES, LFS, APS and WFJ are its preferred sources for employment (with the Annual Business Survey preferred for turnover). The enterprise count (50,400) is nonetheless a current, comparable figure to the roughly 49,300 businesses implied by CBI Economics' own 2024 turnover-band analysis for the sector — showing continuity rather than the acceleration in business closures that a rapid post-Budget collapse would imply. The employment-minus-employees gap (~16,900) is consistent in scale with the 2024 BRES gap (18,000) ONS separately confirmed in its FOI-2026-3659 response, from a different source and reference point — reinforcing that this proxy-for-self-employment figure is stable rather than volatile.
8.3 What this section does and doesn't establish
- Both cross-checks are consistent with continuity in the sector — modest, gradual change — not with the scale of employment collapse forecast in some third-party sector reports (for example, projections of an over-90% reduction in employed roles by 2030).
- Neither cross-check is a direct substitute for the primary HMRC SIC 96020 series used in Sections 1–3, and neither should be summed with, or netted against, those figures.
- Neither cross-check yet provides a recent occupation-based employed (as opposed to self-employed) count, which would be needed to test forecasts of employed-role collapse directly on an occupation basis. A follow-up FOI request covering this has been submitted; this section will be updated on response.
7. DATA SUMMARY
Employment Overview (2018-19 to 2024-25)
Total Workforce:
- 2018-19: 390,000 people
- 2023-24: 397,000 people (latest year both series confirmed)
- Net change: +7,000 (+1.8%)
PAYE Employment:
- 2018-19: 201,000
- 2024-25: 186,000
- Change: -15,000 (-7.5%)
- Share of workforce: 47%
Self-Employment:
- 2018-19: 189,000
- 2023-24: 210,000 (confirmed; unchanged since 2021-22)
- Change: +21,000 (+11.1%)
- Share of workforce: 53%
Regional Patterns:
- All regions show similar trends
- PAYE: modest declines across most regions
- Self-employment: growth in most regions
- Consistent national pattern
COVID-19 Impact:
- 2020-21: Temporary decline of 25,000
- 2021-22: Recovery exceeding pre-pandemic levels
- Self-employment proved more resilient
- 2023-24/2024-25: Gradual, low single-digit PAYE decline continues; no renewed shock
International Context:
- UK: 52% self-employed
- Range across developed economies: 34-58%
- UK follows global trend toward self-employment
ONS Independent Cross-Check (Section 8):
- Occupation-based self-employment (SOC 6221+6222): 150,200 (Apr 2025–Mar 2026)
- Enterprise count (IDBR, SIC 96.02): 50,400 (March 2025)
- Both consistent with gradual trend, not sharp collapse
Complete Dataset
| Year | PAYE | Self-Employed | Total | % Self-Employed |
|---|---|---|---|---|
| 2018-19 | 201,000 | 189,000 | 390,000 | 48% |
| 2019-20 | 201,000 | 201,000 | 402,000 | 50% |
| 2020-21 | 175,000 | 202,000 | 377,000 | 54% |
| 2021-22 | 195,000 | 210,000 | 405,000 | 52% |
| 2022-23 | 188,000 | 210,000 | 398,000 | 53% |
| 2023-24 | 187,000 | 210,000 | 397,000 | 53% |
| 2024-25 | 186,000 | 210,000* | 396,000* | 53%* |
*2023-24 self-employed figure (210,000, confirmed) carried forward for this row only; 2024-25 self-employed data not yet published. All other self-employed figures in this table are confirmed HMRC data, including 2022-23 and 2023-24, which were carried-forward estimates in the previous version of this report.