According to data compiled by GlobalData, the global economy had the most significant influence on apparel supply chain hiring in the second quarter of 2023 (1st April to 30th June). The impact of the global macro-outlook was particularly pronounced during May, but it remained the dominant theme affecting supply chain hiring throughout the entire quarter.
Several economic factors contributed to this hiring trend. The ongoing high inflation rates led consumers to prioritise their spending, resulting in challenges for the apparel industry. Additionally, soaring energy rates, the ongoing war in Ukraine, and tensions between the US and China all negatively affected the global apparel supply chain, further impacting hiring decisions.
While there was a growing interest in AI and the Internet of Things in 2023, GlobalData’s analysis did not indicate that digitalization had a significant impact on supply chain hiring during the second quarter. Similarly, despite health and safety concerns making headlines in the fashion supply chains worldwide, it was not listed as a major theme for the quarter.
The supply chain itself and Europe’s macro-outlook were other key themes influencing apparel supply chain hiring in Q2. Europe faced similar challenges to the global economy, struggling with high inflation rates and the impact of high energy costs, as well as the ongoing conflict between Ukraine and Russia.
Looking ahead, the National Retail Federation’s chief economist, Jack Kleinhenz, acknowledged that the US economic headwinds would affect consumer spending in the coming months but expressed optimism for the next quarter, stating that the economy was still moving in the right direction.
Overall, the impact of the global economy on apparel supply chain hiring in Q2 2023 highlights the industry’s sensitivity to economic conditions and the importance of addressing challenges such as inflation and geopolitical tensions
