No, much less now than before.
For children's clothes, underwear and socks and garments that are directly on the body, merino wool is used, which is very soft and has long fibers with a low micron.
Normally we define fibers with microns lower than 21 as itch-free. This wool does not irritate the skin unless you are very sensitive.
There will always be users with very sensitive skin who will react to wool. For them, garments with polyester on the inside and wool on the outside can be a good alternative. Our 50Fifty quality of underwear is a good example. Also other mixing qualities with e.g. Tencel can be good alternatives. It has also emerged in a new research report from the BJD (British Journal of Dermatology, 2017) that wool relieves atopic eczema.