Key Insights from SaCSA’s Progress in Action: Personal Services Workforce Plan Update, 2025.

Jul 28, 2025

The newly released Personal Services Workforce Plan Update 2025 by Service and Creative Skills Australia (SaCSA) provides a critical lens on the challenges and future opportunities facing the hair, beauty and barbering industries. These insights build on their 2024 Workforce Planning Reports - Shaping Tomorrow and outline their progress and next steps in developing practical solutions.

For the industry this report offers valuable insights into the structural changes, skills gaps and shifting expectations shaping our sector.

Golden hairdressing tools scissors combs on green background. Horizontal template with hair salon accessories and copy space.

Here’s what it reveals and why it matters...

Key Issues Impacting the Hair, Beauty & Barbering Sector

Persistent Workforce Shortages
Hairdressers and beauty therapists remain listed on Australia’s national Occupation Shortage List, driven largely by what SaCSA terms a “long training gap.” In 2022–23, fewer than half of advertised vacancies for hairdressers were filled, with 85 percent of applicants considered unsuitable. This shortage is unlikely to be resolved quickly given the extended duration of training required.

Declining Training Enrolments
Enrolments in SHB training packages have declined by over 30 percent since 2015. While qualification completions have held steadier, most workers do not continue into higher levels of training or leadership roles, limiting opportunities for career advancement and business succession.

Attraction and Retention Challenges
The sector continues to face high attrition rates, especially among young workers, with average tenure around 18 months. Contributing factors include low wages, limited career pathways, and poor workplace culture. A growing number of professionals are opting for self-employment, which now accounts for nearly half of hairdressers.

Outdated and Inflexible Qualifications
Stakeholders report that core training units are often misaligned with current practice, limiting the relevance and effectiveness of VET qualifications. There is strong industry demand to modernise the SHB package and introduce more flexible, specialisation-based pathways.

Structural Shifts in Business Models
The rise of salon suites, freelance operators, home-based salons and chair rental models continues to challenge traditional apprenticeship systems. These modern business formats often lack the infrastructure to host apprentices or provide structured training.

Sector Trends and Emerging Opportunities
Digital Skills Now Essential
Digital fluency - especially in areas like social media, online booking, and salon software is now seen as critical. According to SaCSA’s 2024 survey, social media and digital marketing were identified as the top skills in demand across hair, beauty and barbering. CSRC offers Professional Certifications in Social Media Marketing.

Entrepreneurial Aspirations Are Growing
A significant portion of Certificate III learners express a desire to run their own businesses. Training needs to better support this shift by embedding leadership, management, and business development skills into core or elective units.

Greater Inclusion and Accessibility Needed
Regional and remote communities face limited training access, while barriers such as cost of living, transport, and rigid delivery formats prevent many disadvantaged learners from completing qualifications. Flexible models and modular training delivery are needed to bridge the gap.

School Partnerships and Early Engagement
Hairdressing qualifications are popular in VET in Schools programs, but completion rates remain low. In 2023, only 9 of 813 enrolled students completed their qualifications. Better school engagement, career showcasing, and mentorship opportunities are critical to improve retention.

Teacher Helping Students Training To Become Hairdressers

What Actions are Underway?
SaCSA is progressing several initiatives to address these issues and reposition the sector for long-term success:

1. Review of Hairdressing & Barbering Qualifications
A comprehensive review is underway to modernise four key qualifications (Certificate III in Hairdressing, Certificate III in Barbering, Certificate IV in Hairdressing, and Diploma of Salon Management) to ensure alignment with industry needs and remove outdated or redundant content.

2. Workforce Shortage Research
A targeted project is investigating the drivers of workforce shortages, apprenticeship attrition, and declining VET participation to inform evidence-based training reform.

3. Unit Currency Audit
This national project is reviewing superseded and deleted training units to ensure currency and relevance across the SHB, SIR, SIT, SFL, and SIF training packages.

4. Career Mapping and Digital Skills Gap Analysis
Upcoming initiatives will explore digital transformation, sustainability, and evolving career pathways to ensure learners are equipped for the realities of today’s working environments.

The SaCSA 2025 Workforce Plan confirms that while challenges persist, there is significant momentum toward reform. The Creative Skills Retail Council is committed to supporting these efforts through our impact-driven programs. Access the Full Report - HERE.