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Market Intel

Law Firms in Australia Have Stayed Busy, With No Signs of Slowing Down: Here's Why

Rebecca Adlington
July 26, 2022

As we all know, the COVID-19 pandemic continues to be a threat to economies around the world. While Australia, in recent months, has rolled out a nationwide vaccine program and been successful in keeping covid-19 cases at bay, the future of international and even domestic travel is still uncertain.

With this said, Covid-19 has failed to derail Australia’s law sector and prevent New Zealand lawyers from moving to firms in Australia. The demand for legal services has generally been unabated, with firms reporting upticks in work despite the pandemic. In fact, covid has impacted the Australian small law sector ‘’more positively than negatively’’ in terms of business revenue, with 57% of small firms experiencing revenue increases in 2020, according to the State of Small Law Australia Survey. Mid-size firms have also enjoyed a 20% increase in litigation, labour and employment law, and wills and estate planning (PracticeEvolve).

The ‘Big Six’ firms – Allens (partnered with Linklaters), Herbert Smith Freehills, Ashurst, King & Wood Mallesons, Clayton Utz, and Minter Ellison – have continued to play major roles in the legal market, securing high-profile mandates across key practice areas. Other significant firms, Corrs Chambers Westgarth and Gilbert + Tobin, have also performed well, while international firms such as Clifford Chance, Allen & Overy LLP, and Norton Rose Fulbright maintain a high profile in the market, utilising their global networks to act on matters across the Asia-Pacific region, (TheLegal500).

As legal recruiters, we have experienced an extremely busy first quarter, and the market isn’t slowing down as we head further into 2021.

So what has allowed the Australia legal market to stay buoyant in the covid era?

Technology

Although digital transformation has been altering the landscape for the legal sector for some time now, undoubtedly, the overall impact of COVID-19 has accelerated new thinking and innovation. According to the State of Small Law Australia Survey by Smokeball, the adoption of technology was the main factor concerning positive impact on revenue (92%).

Property Demand

The Australasian lawyer magazine reported that conveyancer’s and property-focused lawyers have been the winners in COVID-19 times, with the considerable increase in property purchases and research across the country, particularly in regional areas,” says Smokeball CEO Hunter Steel – “given the current economic situation, this looks set to stay the pace.”

New Practice Areas

Reflective of the ever-developing legal market, several new practice areas have been introduced this year. These include arbitration, data protection; environment and planning; financial services regulation; white-collar crime and immigration.

Infrastructure Developments

Energy and projects work has continued, with major infrastructure developments such as the Sydney Metro keeping the likes of White & Case and Ashurst busy. Energy and minerals work in Western Australia and Queensland has also been steady, bolstered by record gold prices and government initiatives to strengthen renewable energy supplies, (Legal500).

Remote Working

Among the 134 small law firms surveyed by Smokeball across Australia, 57% enjoyed revenue growth over the past year. According to the respondents, 64% said the adoption of remote staff management positively impacted revenue.

Looking forward to the remainder of 2021, 82% of respondents from the State of Small Law Australia Survey expect their profitability to increase this year; with nearly a fifth looking to record over 20% growth in profit, while some anticipate a 10%-15% increase.

Australian mid-size firms believe the legal profession will improve efficiencies in delivering legal services. Practice Evolve report that priorities are likely to shift to more firms engaging in regular review of work processes, greater use of technology to replace human resources, formal knowledge management programs and rewarding efficiency and profitability.

Trading conditions are projected to be primarily positive for all firms over the next five years. Industry research reports from IBISWorld project that the Australian economy will likely recover from the effects of the pandemic over the period, boosting demand from businesses and households. In particular, demand from property operators and developers and banking, finance and insurance firms is forecast to grow strongly. Larger legal services firms anticipate multi-disciplinary services, including advisory services, to compete for clients.

Therefore, if you are a lawyer looking to advance your career in Sydney, Brisbane, Melbourne, Perth or Brisbane, now is the time to begin a search for your dream role.

Request a copy of our latest Australia Salary Guide or get in touch with our friendly team today for a full rundown of the market on: info@sonderconsultants.com

“The best way to predict the future is to create it”
– A Lincoln

Rebecca Adlington
Global Marketing Manager
INSIGHTS

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