Prevalent Unsocial Disorder Spreading Across Globe
The COVID-19 pandemic has had a profound impact on various sectors of the German economy, with the hairdressing sector being one of the hardest hit. In the second quarter of 2020, the economy experienced a historic crash, with a GDP drop of 9.7% compared to the first quarter, largely due to government lockdown measures and restrictions to contain the virus[1].
The hairdressing sector, being close-contact service providers, faced particular challenges due to prolonged closures and restrictions on in-person services. Hair salons had to close during lockdowns or operate under strict hygiene protocols, leading to drops in revenue and financial strain. While no direct data on hairdressers was found, it is well documented that personal care and hairdressing businesses across Germany faced severe challenges during the pandemic[1][2].
To mitigate the economic damage, the German government introduced various support measures targeting small businesses and self-employed individuals in hard-hit sectors like hairdressing[1][2]. These interventions included financial aid packages and grants, short-time work schemes, loans and credit guarantees, and tax relief and deferrals. These measures were designed to preserve jobs and prevent business closures in vulnerable sectors like hairdressing[1][2].
The pandemic exacerbated pre-existing economic challenges such as slowing productivity and business dynamism in Germany[2]. Recovery has been slow, with growth projections for 2025 remaining subdued due to lingering uncertainties, energy price pressures, and export challenges[3][4]. Despite the recovery in turnover, the economic situation of many hairdressing businesses remains tense due to rising costs and unfair competition[2].
The coronavirus crisis particularly affected small self-employed businesses in the hairdressing sector, causing initial collapse in turnover that gradually recovered by 2023[2]. The German government provided aid packages totalling 750 billion euros, which included subsidies for small businesses and self-employed individuals, credit guarantees for companies, and liquidity assistance[2].
While Germany's gross domestic product has stagnated in the past five years, it has increased by around six percent in the rest of the Eurozone and by around twelve percent in the USA[2]. The pandemic has revealed structural deficiencies in Germany's economy, such as extreme dependence on exports and issues in infrastructure and education[2].
In conclusion, the hairdressing sector in Germany has experienced substantial disruptions during the COVID-19 pandemic, with closures and reduced customer demand severely impacting revenues. The government responded with comprehensive aid measures—financial support, job retention programs, and credit facilities—to help these small businesses survive the crisis and stabilize the economy[1][2]. However, a sustainable recovery of the overall economy is necessary to bring new impetus and stability to the hairdressing sector.
- In an effort to address the financial strain faced by the hard-hit hairdressing sector, the German government introduced support measures focusing on small businesses and self-employed individuals, providing financial aid, tax relief, and credit guarantees.
- The science of public health and wellness played a crucial role in guiding government responses to the COVID-19 pandemic, with hair salons operating under strict hygiene protocols to ensure the safety of both clients and employees.
- As a result of the economic challenges faced by the hairdressing sector, personal finance and business experts have identified opportunities for growth, advocating strategies to improve profitability, manage costs, and navigate fair competition in the industry.
