They're employed making woolly ruffles (7)
I believe the answer is:
needles
I believe this clue is a double definition.
'they're employed making woolly' is the first definition.
(needles may be used to make a wooly garment)
'ruffles' is the second definition.
(both can mean to irritate or annoy)
(Other definitions for needles that I've seen before include "Western point of the Isle of Wight" , "Annoys the pointed implements?" , "Conifer leaves" , "passes through" , "Sewing aids" .)