The way hairstylists work in the United States is changing.
Traditional W-2 employment still represents the slightly larger group, but self-employed hairstylists now account for nearly half of the occupation. The long-term shift is important because working independently changes more than where a stylist performs services. It changes how that stylist must think about pricing, taxes, expenses, scheduling, benefits and profit.
From 2016 to 2024, the estimated self-employed share of U.S. hairstylists increased from 42.9% to 47.6%. That is a gain of 4.7 percentage points.
So, which type of employment is on the rise?
The long-term trend favors self-employment as a share of the hairstylist workforce. However, the 2025 and 2026 estimates show both W-2 and self-employed hairstylist counts increasing slightly, with W-2 employment growing a little faster during those two years.
The numbers at a glance
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Estimated W-2 hairstylists declined from 352,800 in 2016 to 301,600 in 2024, a decrease of approximately 14.5%.
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Estimated self-employed hairstylists increased from 264,600 in 2016 to 273,600 in 2024, an increase of approximately 3.4%.
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The self-employed share increased from 42.9% to 47.6% over that period.
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By 2026, the estimates show approximately 306,500 W-2 hairstylists and 275,100 self-employed hairstylists.
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The self-employed share is estimated to remain close to 47% in 2025 and 2026.
Image alt text: Bar chart comparing estimated U.S. W-2 hairstylists and self-employed hairstylists from 2016 through 2026.
Estimated U.S. hairstylists by employment type
| Year | W-2 / wage employees | Self-employed / 1099 proxy | Self-employed share | Data status |
|---|---|---|---|---|
| 2016 | 352,800 | 264,600 | 42.9% | BLS benchmark |
| 2017 | 367,300 | 283,400 | 43.5% | Interpolated estimate |
| 2018 | 381,700 | 302,100 | 44.2% | BLS benchmark |
| 2019 | 387,400 | 268,700 | 41.0% | BLS benchmark |
| 2020 | 325,700 | 244,000 | 42.8% | BLS benchmark |
| 2021 | 294,500 | 264,200 | 47.3% | BLS benchmark |
| 2022 | 300,100 | 255,700 | 46.0% | BLS benchmark |
| 2023 | 295,900 | 275,200 | 48.2% | BLS benchmark |
| 2024 | 301,600 | 273,600 | 47.6% | BLS benchmark |
| 2025 | 304,100 | 274,400 | 47.4% | Estimated |
| 2026 | 306,500 | 275,100 | 47.3% | Projected estimate |
What changed between 2016 and 2024?
In 2016, the estimated gap between W-2 and self-employed hairstylists was 88,200 workers. By 2024, that gap had narrowed to only 28,000.
That does not mean W-2 employment is disappearing. It means self-employment has become a much larger part of the industry.
The biggest disruption appears in the 2020 and 2021 figures. W-2 hairstylist employment fell sharply, while the self-employed share reached 47.3% in 2021. By 2023, the self-employed share reached an estimated 48.2%, the highest point in this series.
In 2024, the U.S. Bureau of Labor Statistics reported approximately 575,200 hairdressers, hairstylists and cosmetologists, with about 48% classified as self-employed workers. BLS also projects employment in this occupation to grow 6% between 2024 and 2034.
Is self-employment still rising in 2025 and 2026?
The estimated number of self-employed hairstylists rises slightly—from 273,600 in 2024 to 275,100 in 2026. But W-2 employment is also estimated to rise, from 301,600 to 306,500.
Because W-2 employment grows a little faster in this short projection, the self-employed share slips slightly from 47.6% in 2024 to approximately 47.3% in 2026.
The clearest conclusion is this:
Self-employment gained significant ground over the longer 2016–2024 period and is expected to remain near record-high levels. In the immediate 2025–2026 estimates, however, both employment types are relatively stable and growing slowly.
What this means for independent hairstylists
Becoming self-employed can provide more control over your schedule, pricing, services and client experience. But independence does not automatically create profit.
A self-employed stylist is responsible for costs that may be handled differently in a traditional employee position, including:
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Booth or suite rent
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Professional products and color
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Tools and equipment
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Booking and business software
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Insurance and licenses
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Marketing and advertising
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Self-employment and income taxes
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Unpaid administrative time
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Time off and other benefits
This is why gross service revenue is not the same as take-home income. A stylist can be fully booked, collect a large amount of money and still keep far less than expected after every cost is included.
If you are independent, the most important question is not only, “How much did I make today?” It is:
“How much did I actually keep after products, operating expenses, taxes and personal financial needs?”
What this means for W-2 hairstylists
W-2 employment can offer more structure and may include employer-managed payroll taxes, supplies, marketing, scheduling support or benefits. The exact arrangement varies by salon.
However, being a W-2 employee does not remove the need to understand your numbers. Commission structure, tips, service prices, hours, retail sales and benefits can all affect the real value of the position.
Stylists comparing employment opportunities should look beyond the commission percentage alone. They should compare the complete financial picture, including what the salon provides and which expenses the stylist must still pay.
What this means for salon owners
Nearly half of hairstylists being self-employed means salon owners are competing with booth rental, suite rental and independent studio models when recruiting and retaining talent.
Clear compensation, education, business support, career development and a healthy salon culture can become important advantages. Salon owners also need to classify workers correctly and follow federal, state and local rules. Whether someone should legally be treated as an employee or independent contractor depends on the actual working relationship—not simply the label used by the salon.
Frequently asked questions
Are most hairstylists W-2 employees or self-employed?
W-2 or wage employment remains slightly larger in this dataset. For 2024, the estimates show approximately 301,600 wage employees and 273,600 self-employed hairstylists. Self-employed workers represent about 47.6% of the total—nearly half, but not a majority.
Is a self-employed hairstylist always a 1099 worker?
No. “Self-employed” is used here as a proxy for the independent or 1099 side of the industry, but it is not an exact count of 1099 tax forms. Business structure, payment arrangements and worker classification can vary.
Is W-2 hairstylist employment disappearing?
No. W-2 employment declined over the longer period shown, but it remains the larger group and is estimated to increase slightly from 2024 through 2026.
Which group is growing faster?
Over the 2016–2024 period, self-employment clearly gained share. In the 2024–2026 estimates, both groups grow modestly, with W-2 employment increasing slightly faster.
Is the overall hairstylist occupation expected to grow?
Yes. The U.S. Bureau of Labor Statistics projects employment of hairdressers, hairstylists and cosmetologists to grow 6% from 2024 to 2034.
The bottom line
The hairstylist workforce is now close to an even split between wage employment and self-employment.
The national trend shows that independent work has become a major and lasting part of the beauty industry. But whether you are W-2, commission-based, a booth renter or a suite owner, your employment label alone does not determine your success.
Your numbers do.
At Profit Pro Hairstylist, I help hairstylists understand what they are actually earning, identify where profit is leaking and make more confident decisions about pricing and business growth.
Ready to stop guessing and understand what you actually keep behind the chair? Explore Profit Pro Hairstylist and start looking at your business through the numbers.
Data notes and sources
This article uses BLS employment benchmarks together with an interpolated 2017 value and estimates for 2025–2026. Figures are rounded to the nearest hundred. “W-2 / wage employee” and “self-employed / 1099 proxy” are practical labels used for comparison; they are not direct counts of tax forms. The wage-employee estimate is treated as the non-self-employed portion of total occupational employment.
Sources:
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U.S. Bureau of Labor Statistics: Barbers, Hairstylists, and Cosmetologists
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U.S. Bureau of Labor Statistics: Occupational Projections and Worker Characteristics
This information is educational and should not be treated as tax, employment-classification or legal advice.