Law360: Legal Industry Gains Jobs In April Following Downward Trend

Tracey Read | May 3, 2024, 1:53 PM EDT

The U.S. legal sector eased back into a positive trajectory in April, with a gain of 3,200 jobs compared with the previous month, according to preliminary data released Friday by the U.S. Bureau of Labor Statistics.

The number of jobs in the legal sector rose to more than 1,190,000 in April, up nearly 0.3% from the 1,187,000 employed in March, based on seasonally adjusted numbers from the bureau.

The uptick in April came after a loss of more than 3,000 jobs in March from February. 

The current job count also remains higher than a year ago, with 19,000 more people employed in the legal industry than in April 2023, according to the BLS.

Meanwhile, total nonfarm payroll employment increased by 175,000 in April, lower than the average monthly gain of 242,000 over the prior 12 months. However, the broader U.S. unemployment rate was 3.9% in April — a rate that has changed little since August, the BLS said.

The legal sector's job count includes attorneys, paralegals and other legal professionals.

Michelle Fivel, a founding partner of legal recruiting firm Hatch Henderson Fivel, said the April jobs numbers are in line with the trends she's seeing.

She noted that firms seem to be very busy in much of the same practices they were last year — finance, energy transition, bankruptcy, commercial litigation, and labor and employment.

"The practice areas that were very slow last year — M&A/PE, capital markets, EC/VC — are still somewhat slow now, though there seems to be a bit more M&A deal flow, which is the key to the market going gangbusters again," Fivel said. "When M&A truly picks up, we may see another hiring frenzy."

Fivel added that firms are currently interested in high-quality associate talent.

"They are actively interviewing and hiring associates and seem bullish on the activity level in the pipeline for the foreseeable future," she said.

Some firms have begun raising associate salaries to remain a competitive destination for young attorneys.

For instance, Wilmington, Delaware-based firm Potter Anderson & Corroon LLP last month increased the starting salary for associate attorneys to $210,000 from $190,000. Another Delaware firm, Young Conaway Stargatt & Taylor LLP, also upped starting salaries for associates to $210,000 in April.

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