The skirt is too small around the hip which is causing it to ride up and wrinkle below the waist.
Let out the side seam between waist and hip until the skirt hangs normally. If the seam allowances are insufficient for this, the skirt can be lifted from the waist but this will, of course, reduce the length. Even if the waist size does not need to be increased, let out the waist an equal amount and reduce the size by adding an extra dart. This avoids a sudden curve between hip and waist. If the skirt is straight or only slightly flared, the extra width added at the hip line should also be continued to the hem in order to retain a good shape. Alter the front and back patterns in the same way.
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