2023 has meant many changes in the face of the legal industry and recruitment when compared to the previous two years. In effect, the recruitment market in New York (and around the world) has returned to pre-pandemic levels where processes are longer, and firms only recruit the very best talent to support their needs.
In this article, we’ll outline exactly what trends we are seeing on the ground in New York and other key markets in the U.S, so you can approach your job search with all the facts.
- Strong appetite for mid-level lawyers
In the current market, New York firms are looking for talented mid-level associates with a strong skill set and experience. The hotspot is those with 3-5 years of experience, particularly in transactional areas.
In-demand practices that don’t revolve around the economy—such as litigation, privacy, data security, intellectual property, employee benefits, and tax—are still hiring steadily. We have also seen an increase in associate moves within Investment Funds (+14%), and Restructuring (+4%) within the last 3-months.
- Junior lawyers finding less traction
Those with under two years of experience are finding it more challenging to make a lateral move in the current market. Our advice is to stay put and build your experience. This trend is likely to continue until the end of Q3, when firms may look towards the junior level when corporate areas start to pick up. If you do, however, have big concerns about your current position, reach out for some personalized advice.
- New Hires Outweigh exits
The global economic downturn was set to cool the partner hiring market. However, this has remained busy as firms look at strategic hiring and growth strategies to build their portfolio in those transactional spaces and emerging practice areas such as secondaries, I.P., crypto, and ESG. In fact, there has been a 10% increase in partner hires in New York in the first quarter of 2023.
Interestingly, there have also been more hires within AmLaw 100 firms than exits and layoffs so far this year. And while it's clear that associates across New York and L.A. (and indeed, across the world) continue to be concerned about what the market is doing. In terms of raw numbers, the last few years has seen hiring wax and wane across NYC and L.A., but otherwise remain strong for Q1 of each year:
- Q1, 2019: 2,674 moves (8,101 total/year)
- Q1, 2020: 3,232 moves (7,187 total/year)
- Q1, 2021: 3,177 moves (11,026 total/year)
- Q1, 2022: 3,316 moves (10,022 total/year)
- Q1, 2023: 3,359 moves
This year is no different, with hiring outweighing the exits within the Am Law 100 space. Of the 3,359 moves in Q1:
- 1,761 were hires
- 1,598 represent losses (and yes, may include some layoffs).
Compare this against the full year 2021 (at the height of pandemic hiring):
- 5,960 were hires.
- 5,066 were losses.
The numbers are there to support that hiring is absolutely happening in this market, despite layoffs continuing to draw headlines. - Stefano Barbagallo - Principal Consultant
- Longer recruitment processes
Unlike in 2021, when firms needed people to work on the sheer volume of deals, which led to a feeding frenzy for corporate associates (with firms giving out jobs after one interview and presenting sizeable sign-on bonuses to second-year associates). Approval processes within the firms hiring teams are taking longer, and so is the interview process as firms nail down the right talent.
- Regional differences across the U.S.
Some regions are experiencing the downturn far less harshly than others. Firms in California, for instance, are experiencing large pockets of activity outside of corporate and tech and within I.P., Real Estate, Litigation, and Employment.
In fact, any legal market less beholden to the capital markets or private equity—such as those in Washington, D.C., Florida, and Texas—is likewise seeing more modest effects from the recent economic downturn.
The state of Texas, for example, currently has more than 400 posted jobs in the Am Law 200 across practices that need to be filled, which doesn’t even include the substantial number of boutique job openings that aren’t posted through traditional avenues.
- Less demand for overseas lawyers
Compared to what we saw last year, Canadian and Australian lawyers are finding less traction in the U.S. market simply because firms can find more talent on their doorstep. This isn’t to say they won’t be considered; however, as mentioned, it could be a long process. Therefore, if you are committed to a move to the U.S., start the process earlier rather than later.
- Opportunity for less established law firms
Firms keen to build out new practice groups have a real opportunity at the moment to secure top talent - particularly after the recent layoffs at top firms. This also presents opportunities for young and hungry lawyers looking for an entrepreneurial environment with access to plenty of new and exciting work.
New York’s legal market will always be fierce despite its challenges. Talented lawyers with the right skill set and motivation will always find opportunities at top N.Y. firms. In the current market, you may need to sit tight for the ideal opportunity but rest assured, you will find your fit, and we will help every step of the way. - Kevin Sinnott - MD at Sonder Consultants
If you are a U.S. of attorney looking for a new challenge, don't hesitate to reach out to our U.S. team for no-obligation advice regarding the current market and your options in New York and other major markets.
