We have seen historical lateral hiring since 2020. Unfortunately, as inflation and high-interest rates slowed corporate and lending activity, there was an influx of associate layoffs – specifically with firms that service the tech sector. When it comes to overall trends in the legal market, lateral attorney hiring is starting to become more reflective of pre-pandemic attorney hiring.
So what does this mean for lawyers looking to make a move?
In BigLaw, firms are able to be more selective when choosing which lateral attorneys to hire, meaning that lawyers need to stand out from their peers in order to gain an edge. This could mean having a stellar academic record, making a lateral move from a peer firm, having specialized experience in key practice areas, or even being willing to relocate for the role.
It’s important to note that mid-size and boutique firms are also actively seeking lateral attorneys. With more companies looking to lower their legal costs, mid-size and boutique firms are seeing an increase in clients due to their lower billable rates. These firms are looking for associates who possess a good track record and can offer specialized legal services.
Specifically in California, since the beginning of the year, we have seen the most openings in three major practice areas: Litigation, Corporate, and Labor & Employment. Litigation is always a top hiring practice, as firm clients are poised to spend a lot more on outside counsel to tackle their litigation matters head-on. Confusing new employment laws and the possibility of lucrative class action settlements may be fueling growth for employment law practices.
While there was a decline in deal activity in 2022, including a fall in strategic M&A and capital markets offerings, private equity-backed M&A remained steady, and we’ve seen several openings for mid-level private equity M&A associates and investment fund associates across all levels.
Ultimately, the legal economy is still in flux and lateral attorney hiring is becoming more competitive. However, there are still plenty of opportunities for lawyers who have the right skill set and determination to succeed. With increased competition in the market comes a greater reward for those willing to go the extra mile and distinguish themselves from the rest.
Vine Attorney Search can help make sure you have a competitive edge for roles in California by assisting you with resume help, interview prep, and negotiations to make sure that find the perfect match for you and your career goals.
