The California legal market has continued to evolve, witnessing substantial advancements across diverse sectors. These developments have made California a desirable destination for lawyers seeking new work opportunities.
In this article, we will highlight the latest market insights and legal trends in California, including a market overview, the demand for lawyers, and the practice areas driving demand.
Market Overview
California's legal market stands out as one of the most robust in the United States. The legal sectors driving demand in California are technology, real estate, and the entertainment sectors. However, there is also a strong focus on corporate law and litigation.
Compared to other legal markets, such as New York, law firms in California have a relatively small class size. These often range from 5 to 7 summer associates in a group. As a result, this causes the market to be highly competitive. However, the relatively small class sizes also result in better associate to partner ratios within law firms, creating an environment that fosters learning and collaboration.
Below we have highlighted the best law firms to work for in Northern and Southern California according to the Vault's Annual Associate Survey.
Is there a demand for lawyers in California?
For Associates
In 2023, the legal industry saw 18% fewer associate moves than the previous year. However, in the last three months of 2023, lateral recruitment began to increase again.
Notably, there has been a surge in litigation, real estate, technology, media & telecom (TMT) and employment. While companies are not hiring as many corporate associates as they were before, there are still some opportunities. Additionally, the demand for mid to senior-level associates falls within the two to five-years of experience range.
For Partners
Despite economic uncertainties, the partner market in California remains fiercely competitive. Many law firms in the state are hiring experienced professionals to help them make business plans and improve how they serve clients.
Market analysis has shown that in 2023 San Francisco saw fewer partner changes than the year before. However, Los Angeles had a big increase, almost doubling the number of moves on LinkedIn.
In smaller markets like San Diego, there was a 51% uptick in partner moves in 2023 when compared to the previous year. This signifies a notable trend of law firms gearing up for growth.
Similarly, Sacramento saw a remarkable doubling of partner moves, indicating a notable shift in the legal landscape.
Practice areas driving demand in California
- Intellectual property
- Corporate and Private Equity
- Privacy and Cyber Security
- Real Estate
- Employment
- Litigation
- Technology, Media & Telecom (TMT)
“The litigation landscape shows no signs of cooling in 2024. TMT, employment and IP are also driving a significant amount of work. Despite a prolonged global M&A slowdown, I am optimistic that transactional practices will see a resurgence this year. By summer 2024, more companies will be looking to hire corporate associates." - Michael McGinnis, Principal Consultant (LA based legal recruiter)
Are you a lawyer looking to relocate to California but want to know more about the lifestyle perks and benefits? Learn more about Working as a Lawyer in Los Angeles here.
Reach out to us today to explore your opportunities in California!
