Lash Artists Returning to the Workplace in 2025
When speaking about that Lash Artist, she is me. Along with hundreds of others stating they are doing so as well in my DM’s and comments. I’ll be returning to the Workplace in 2025 based on a few big points with the fluctuating market and economic predictions. I’ll still be lashing, just not at the same rate I was.
1. We Are Heading for a Recession or an Extremely Slow Recovery From One.
I HATE to be the bearer of bad news but looking at the various investment firm predictions, we may be heading for a recession in the near future. The outlook we are most likely going to experience is a 1.9% GDP growth for 2025 instead of the 2.4% GDP growth we had in 2024 according to NASDAQ.
So what does that mean? Anytime there is a decline in GDP (Gross Domestic Product) it’s a sign our economy is shrinking. During the Great Recession in 2007 we saw a 4.3% drop in the GDP over the course of 2 years (2007-2009.) With a shrinking economy means shrinking job market resulting in a high demand of those looking for jobs. Many clients not in essential work or not in stable fields like healthcare, law, public safety and utility may face layoffs in coming years.
So what are you going to do? I'm planning to find a stable job in one of those fields, save up in a HYSA as recessions are generally financially unpredictable. It's a good time to secure a job before the market becomes super competitive and recessions sneak up fast. I have also built my books on those with "recession proof" jobs (healthcare, law and children of those with one or the other lol.)
2. The Beauty Industry Is Evolving.
Did you care about the quality of your skin in 2016? OF COURSE NOT, we were worried about our heavily contoured faces and lipstick so matte it showed every crack. The beauty industry is expected to grow 6% each year until 2028 according to Business insider. Great! However, major companies like Curology and Ulta are personalizing the retail experience through various hair/skin analysis features according to Business Insider. The major driving force among current successful beauty brands, personalization.
So what does this mean? People are returning to the basics with the most personalized shopping experience with (I’m assuming) the help of AI. With the "clean girl" aesthetic, people may be opting to simplify their routines and invest in fewer products but they are tailored to them specifically.
So what are you going to do? I will be applying this to my business by personalizing EACH and EVERY single lash set. That can take the form of color matching, custom mapping and/or a super personalized experience. When advertising it's important to capitalize that!
3. Inflation Will Still Be a Thing.
According to Vanguard the Fed will do its best to try and bring down the rates to it’s original target of 2% but it’s unlikely it will fall below 3.75% - 4% like it was pre-covid, specifically 2009 - 2016 (below 3%.) In 2023 the inflation rate was 4.1% and 2.9% in 2024 according to Paychex. Wages have stayed pretty consistent when it comes to keeping up with inflation however, they fell behind in 2022 significantly resulting in the struggle many consumers are facing today.
So what does this mean? If the Fed brings the rates down, big purchases like cars and homes will face more competition due to the banks being able to offer lower interest rates. The inflation rate vs wage growth just corrected itself in 2023, but if you haven’t had a raise since 2022/2023 you’re losing 8% of your purchasing power TODAY. So imagine you’re making 50k AFTER taxes, the power of your current salary is only 46k because the cost of everything has risen while your paycheck hasn’t.
So what are you going to do? I will be getting creative with my income. Diversifying in every aspect with a W-2, 1099, gig work and online income. I will also be more intentional with my purchases, if it is not serving my health, happiness, family, supporting my friends businesses or building my career I will NOT be buying it. What's worth it to me? Gym memberships/wear, work clothing, buying gifts from my friend's businesses instead of amazon, healthier food, supplements, etc.
4. Benefits. Benefits. Benefits.
Typically when the Fed cuts it’s rates, the market dips. The best thing about that? It’s a great time to invest when things are low. What’s even better? If you’re employer matches everything you put into your 401K or Roth IRA, it’s free money! With the current administration it may be a good time to take advantage of some tax cuts and set yourself and your family up for the future. Healthcare being provided by your employer is a plus. If you’re in a “loss” or not claiming your cash in order to receive Medicaid/gov healthcare, this may hurt you when it’s time to buy a house.
So what does this mean? Either you can work for someone who will provide those benefits out of their pocket or you can provide for yourself out of your own business. A 9-5 with benefits is a great way to get ahead when it comes to compound interest in investing, healthcare plans at a lower rate, and setting yourself up for some big life purchases.
So what are you going to do? I will be making out the best of both worlds. By still operating my own business I can take advantage of a lot of tax deductions but with a W-2 and benefits I can work towards my goals at a faster rate like buying my parent's their retirement home.
5. 1099 vs W2 When Buying A House.
My dream is to buy my parent’s their retirement home so they don’t have to worry about the rent raising on them because I would be their landlord. According to Modern Day Lending, banks are more willing to lend to W-2 because of the predictability of their consistent income whereas business (1099) fluctuates.
What does this mean? A 1099 may need to provide more documentation and have more money on hand in order to get approved. So to reach my goals faster, my new W-2 will come in handy when it comes time to apply for the house.
So what are you going to do? I will have both a W-2 from my 9-5 AND a 1099/other business tax format from my business. It will take 2 years of both anyways to secure my future mortgage so it never hurts to have a backup plan. My partner is in real estate so I'm lucky to have connections through him however I want to take advantage of the "First Time Home Buyer" programs. I can't do so if we're married or partnered on the property. Check in your area if there are programs that offer down payment assistance like they do here in Rochester, NY.
So if you’re considering returning to the workforce, there’s no shame and it can be a great stepping stone to greater things! Good luck girl! We got this!