Youth unemployment has hit 16.1%, the highest since early 2015, according to the ONS. This surge, now exceeding the EU average, means fewer young people are entering the workforce. The hair and beauty sector, a vital £5.8 billion industry employing 220,000 people, is struggling to provide the apprenticeships needed to train its future workforce.
Businesses want to hire apprentices, but increased employment costs make it unaffordable. Since April 2025, employers face higher National Insurance Contributions (NICs), rising National Living Wage rates, and new employment rights such as day-one paternity leave. Specifically, employer NICs rose from 13.8% to 15%, with the threshold dropping from £9,100 to £5,000. The National Living Wage will increase by 4.1% from April 2026.
These financial pressures, driven by government policy, create a significant barrier. The National Hairdressers Federation (NHBF) points out that government initiatives aiming to boost youth employment are undermined by the rising cost of employing young staff. This creates a paradox where policies intended to help young people are, in effect, pricing them out of opportunities.
The long-term consequences for young people not entering employment by their mid-twenties can be severe, impacting lifetime earnings and career progression. The NHBF is urging the government to review NICs thresholds for apprentice wages, ensure skills funding reaches small businesses, and consider VAT reform. Without policy adjustments, the sector's ability to invest in and train the next generation is severely compromised.
