Unpacking The Link Between Fashion Trends & The Economy

With Ireland currently going through a recession, the last thing you would think about is how the business world and the fashion world are related.

Skirt length and stock prices are more connected than you might think. Trends come and go like waves in fashion, but by looking deeply at these trends, you can see that they are strongly impacted by the state of the economy.

Fashion is the biggest form of expression, and by looking at trends and what society is wearing these days, we can see a hidden projection of the current climate of the Irish economy through clothes. The question remains, are we dressing for style or survival?

Economy and fashion go hand in hand. This is no new topic. In 1926, an economist named George Taylor came up with what he called ‘The Hemline Index,’ referencing the hemline of a skirt. He theorised that when the economy dropped, so did the hemline of skirts. In booming times, the hemline would shorten, and in downtimes, the hemline would drop. An example of the hemline index in use was the Roaring Twenties, where flapper girl short dresses were all the craze.

 

View this post on Instagram

 

A post shared by miss w (@westafricanbaby)

We see this theory reflected in the industry to this day, with more people dressing more modestly—think longer skirts, maxi/midi-length dresses, and long sleeves. People are also leaning into the idea of ‘basics,’ a staple in every woman’s closet, as plainer clothing won’t go out of style and lasts the consumer longer. Since the country is in economic decline, the average shopper cannot afford to hop on every micro-trend that comes by.

Playing on this theory, we can see a big shift in the last decade in the types of clothes we consider ‘trendy.’ Think back to 2015/2016 when crop tops and ripped jeans were all the rage. Distressed fashion had society in a chokehold, allowing us to consider holes in shirts and hoodies acceptable fashion items. Fast forward to 2025, and we see people opting for a more conservative look, with long sleeves, high-neck tops, and no ripped jeans in sight. This shows that we are more conscientious and value the longevity of our clothes over what’s in style.

In 2024, we saw the ‘office siren trend’ take over social media platforms. This was an attempt to romanticize regular corporate jobs by dressing up and inserting yourself into a role. Items such as blazers, button-downs, and ties became popular. We saw workwear in 33% of Bottega’s collection, 35% of Alexander McQueen’s, and 32% of Michael Kors. The leaves the question, does this surge in workwear fashion make us want to work?

In 2024, we also saw a rise in popularity in ‘the old money aesthetic.’ People on social platforms gave tips on how to emulate the trend of quiet luxury, which included wearing chic basics and avoiding tacky accessories. This trend allowed people to create a different persona and look wealthy without meeting the actual criteria. The ‘clean girl aesthetic,’ another trend, also played into the idea that less is more, with plain clothes and a minimalistic style—easy to recreate without breaking the bank.

 

View this post on Instagram

 

A post shared by cindy ♡ (@ab61e)

However, some take the opposite approach when it comes to fashion and the economy, leaning into maximalism. Items like chunky rings, fun patterns, or bright colours can be seen as an attempt to embrace individualism and preserve an image of luxury, as these types of items are not considered ‘basic.’ Dressing in more radical clothes can reflect economic decline, serving as a form of loud luxury and an attempt to project a prosperous lifestyle.

The state of the economy not only affects our clothing choices but also our makeup as well. Consumers are looking for products that serve multiple purposes, which we see in TikTok ‘challenges’,  where beauty gurus attempt makeup looks using just one product—whether it be contour, blush, or lipstick. Shoppers are more aware of how costly makeup can be, so to combat that, it’s easier to buy one product that does it all.

In conclusion, fashion has always been a mirror reflecting the state of the economy, whether through the Hemline Index Theory, the shift toward timeless wardrobe staples, the rise of corporate-inspired aesthetics, or the ongoing battle between maximalism and minimalism. Even our makeup choices are shaped by financial constraints, proving that trends are more than just fleeting moments—they’re economic indicators in disguise.

As consumers, we are adapting, prioritising longevity over impulse, and making more thoughtful purchasing decisions. So, if you don’t know what clothes to buy for the new trend, don’t just scroll TikTok—check the stock market first.

Words by Alyssa O’Sullivan