Fashion and Apparel

In the face of foreign competition, the future of the apparel industry is unclear. Employment in the domestic apparel industry has declined dramatically in recent years as foreign companies have become able to produce goods less expensively than the United States. Changing trade regulations are the most significant factor in this decline. In 2005, the World Trade Organization lifted quotas for apparel and textile products that have prompted U.S. retailers to import greater quantities of apparel that is made in foreign countries with less expensive labor. In addition, domestic production has continued to move abroad, causing further employment decline for apparel workers in the United States.

According to a 2022 report from Dr. Sheng Lu, associate professor in the University of Delaware's Department of Fashion & Apparel Studies, the Department of Labor (DOL) revealed that there was a steep drop in employment in the textile and apparel sectors in the first half of 2020, due to the pandemic, and only a slight uptick in 2021, with a little over 4 percent increase in employment for each sector. The report notes that increased automation in the production process and improved productivity has meant fewer job opportunities for textile and apparel factory workers. The ongoing challenge is in attracting a new generation to this field.

Declining employment will be caused by growing imports and competition from foreign markets, new technology, and cost-cutting practices imposed by retailers. Many U.S. firms will continue to move their assembly operations to low-wage countries, which will adversely affect employment for lower-skilled machine operators. However, much of the apparel will still be designed and cut in the United States, which will maintain the demand for some pre-sewing functions.

The DOL reports that fashion designers will experience a 5 percent increase in employment through 2033, about as fast as the average. The DOL attributes this growth to the increased demand for more fashion-inspired clothing and accessories for everyday wear and the mass market. Social media influencers and retailers that advertise and sell online to consumers have accelerated the need for new fashion designs.

Technological changes continue to affect the fashion manufacturing process. Many apparel manufacturers now use computer systems to design products, make patterns, and present their products to buyers. Many of the operations at apparel factories are difficult to automate, however, because of the large variety of fabrics and the intricate cutting and sewing required of most fashions, so the fashion industry is likely to remain labor-intensive. However, pressers, textile, garment, and related materials; textile bleaching and dyeing machine operators and tenders; and textile knitting and weaving machine setters, operators, and tenders are among the occupations that will experience the fastest employment declines through 2033, according the the DOL. Workers who have knowledge of computer-aided design and computer-aided manufacturing will have the best employment prospects.

Early in the pandemic in 2020, large retail outlets and manufacturers, such as H&M and Nike, experienced serious setbacks as restrictions on public activity forced them to close the doors of their brick-and-mortar shops. In addition, interruptions in supply chains made it more difficult to obtain raw materials for apparel production, and restrictions on trade and travel diminished access to overseas manufacturers. Traditional, in-person fashion shows, conferences, and other events moved to virtual platforms, or, in some cases, canceled or postponed. Some jobs in this industry were lost, especially at the retail and manufacturing level, while business closed to help slow the spread of coronavirus.

Post pandemic, the global apparel market is slowly recovering and is expected to have steady growth in the years to come. A forecast by Research and Markets estimates compound annual growth in the global apparel market of about 4.6 percent from 2024 through 2029, to reach $1.78 trillion by 2029. According to the forecast, this growth will be attributed to the increase in online shopping, offering manufacturers a larger platform to expand their customer base. Other factors that will contribute to industry growth include fashion companies' increased use of influencers to promote products and increase sales, the expansion of e-commerce portals to boost sales in a wide range of geographic areas, and the increase in per capita income due to the strengthening economy.

A McKinsey report noted that during the pandemic, many fashion companies were able to streamline their businesses and hone their business models and customer propositions; this increased focus on business efficiency is expected to continue. The trend of online shopping surged during the pandemic and will continue. Statista forecasts more than a 52 percent increase in revenue in the U.S. fashion e-commerce sector from 2024 through 2029, increasing by $114.7 billion to reach a total of $333.79 billion by 2029. Another trend that will carry forward from the pandemic is that consumers' awareness of justice for vulnerable fashion workers has been heightened, therefore fashion companies will need to focus on offering justice and dignity to their employees. Sustainability in the fashion design and apparel industry will also grow in importance in the coming years.