In the summer of 2025, marked by record-breaking heat, the dress code norms that have persisted for over a century on Wall Street in New York, America, and in London, England, have begun to crack. Financial professionals are increasingly showing up to work in shorts, a taboo that replaced the formal suits and tightly tied ties. Amidst a debate between advocates who call this a rational change to adapt to climate change and critics who argue it undermines professionalism and dignity, major outlets like the Financial Times (FT) have focused on this unusual phenomenon.
FT quoted financial columnist Robert Armstrong on the 14th (local time), saying, "It is now time to consider shorts in the office." He added, "Style has never been fixed, and dress codes must change to fit a changing world." This means that dress norms should also evolve in the face of the significant trend of climate change.
For those working on Wall Street, a deep navy blue suit and a blue tie hoped for a market upturn have long been the standard. Influenced by the British in the early 20th century, this color symbolizes trust and stability. After World War II, sturdy and rough gray flannel suits inspired by military uniforms gained popularity for a time. In the 1980s, which marked the golden age of the American economy, power suits with reinforced shoulders became a trend to flaunt wealth and power. The significant change in financial dress began during the dot-com bubble of the 1990s. As companies lined up to go public on NASDAQ in Silicon Valley, a casual culture of wearing hoodies and jeans first landed on Wall Street. After the financial crisis of 2008, the anti-capitalist movement represented by the 'Occupy Wall Street' protests gained traction, causing ostentatious styles like power suits to fade away. Following the pandemic, where remote work became the norm, business casual attire that does not require ties has reportedly risen as an irresistible trend on Wall Street, according to men's fashion media GQ.
Of course, this does not mean that one can wear just any shorts to work. The New York Times (NYT) stated that office shorts should be chosen according to strict criteria to step away from their weekend or childhood connotations. Cargo or athletic shorts, or any shorts that rise above the knee, should be avoided first and foremost. Instead, tailored shorts made from high-quality materials like linen or wool, and cut to a length below the knee, are being suggested as alternatives. Luxury brands like Burberry and Dries Van Noten have recently introduced shorts suits that can be worn with jackets. The NYT suggested, "Wearing tailored shorts with a suit jacket or a fitted shirt, along with loafers or polished shoes, can create an outfit appropriate for the office."
The rise of well-tailored shorts as a new alternative is rooted in complex social phenomena. The MZ generation, which values sustainability and practicality, is now emerging as a key player in the labor market. According to a survey by consulting firm Korn Ferry, 75% of millennials responded positively to office shorts. Additionally, the psychological tendency of 'conspicuous consumption,' seen in those who have lost weight thanks to popular obesity treatments like Ozempic, to try bold fashion choices has also been noted in reports by the Wall Street Journal (WSJ).
Some still view the dress code as a matter of respect for organizations and society rather than a personal freedom issue. The most potent counterargument to this trend towards relaxed dress codes has come from legislative bodies. The 'dress code incident' that occurred in the U.S. Senate in September 2023 vividly highlighted this difference in perspective. The U.S. Congress had a longstanding unwritten rule, enforced for over 230 years since its establishment in 1789, that mandated formal wear when attending sessions. The Democratic party has since acted upon this long-standing norm to pass a dress code liberalization bill. Consequently, some legislators began to appear in the Capitol dressed in shorts, hoodies, and short sleeves.
At the time, the media labeled the situation as a 'decline in the dignity of America' and criticized it harshly. The WSJ cited columnist Peggy Noonan, who remarked, "If you want to be respected, you must demonstrate an attitude worthy of respect," and continued, "A dignified outfit is a sign of respect for the institution and colleagues, an example for the younger generation, and an expression of inner humility that prioritizes community standards over personal comfort." Ultimately, the Senate unanimously passed a resolution to reintroduce the requirement for male legislators to wear coats, ties, and long pants within a week, resolving the controversy.
However, it appears that more than half of corporations still struggle to provide clear guidelines regarding dress codes. According to a survey by the job site Monster.com, only 57% of office workers had worked in an environment with a dress code in the past year. Due to the lack of clear guidelines, it was reported by the NYT that engineers at a software company in Washington D.C. even began walking around the office barefoot, claiming it helped them "think better." They are known to avoid establishing guidelines to steer clear of being branded as a 'stuffy and dull company' with strict dress codes.
Experts analyze that the controversy over shorts is part of a broader trend where corporate culture seeks to find a new balance between formality and practicality amidst the looming climate crisis and generational change. Professor Dawn Karen, a fashion psychologist, told Forbes, "Dress is a form of 'enclothed cognition' that impacts our thoughts and behaviors," and predicted that dress codes are likely to evolve towards trusting and empowering employees to choose the attire that allows them to focus on work the most.