In the wake of the turbulence seen in 2020 and 2009, some seasoned recruiters might interpret a quarterly decrease in lateral moves as a sign of a new impending legal market crisis. However, this knee-jerk response overlooks the multifaceted nature of law firm hiring, shaped by a myriad of factors such as elections, competitor firm hiring, internal productivity, market forces, and many other variables
While the lateral market is not a flawless indicator, often lagging months behind the actual market trends, these forces tend to balance themselves out long-term, barring a global market disruption. An example is when litigation hiring saw a significant drop from Q1 2023 to Q1 2024, by 24%. Despite this, there was an upward trend in lateral demand for litigation in Q1 of 2024 according to
an article reported on Law360. Although a decrease of 10.7% was observed in publicly posted jobs from Q1 2023 to Q1 2024, it cannot be used as a definitive measure of the lateral demand due to numerous reasons.
One major reason is that many lateral opportunities are not often publicized. Law firms are sometimes inclined to find the perfect candidate without wading through countless resumes or dealing with recruiting firms they’re unfamiliar with. This disconnection between public job listings and actual market activity emphasizes the crucial role of a prominent and well-networked legal recruiter.
Regardless of recent litigation trends, the overall market conditions have significantly improved over the last nine years. During the first quarter of 2024, associate moves numbered 1,578, maintaining a level of stability similar to the 1,618 movements from the previous year’s first quarter. This steady trend counteracts any immediate concerns regarding a market slowdown and instead, indicates a strong, ongoing demand for legal talent.
This pattern continues with partner moves, with an impressive jump from 721 in the previous year to 809 in the first quarter of 2024. This surge portrays evidence of strategic growth within law firms and a continued appreciation of experienced legal talent and new business.
Another encouraging sign is the promotions within firms that have taken place in early 2024, where 1,897 associates rose to partner status. Additionally, a record 1,039 attorneys advanced to counsel roles, the highest number recorded in six years.
Given the variable demand dictated by multiple elements like territory, conditions in the market, and experience, creating better chances of success for lateral moves may demand a professional recruiter. One elegant example is Lateral Link, a firm matching their vast expertise with profound market insights to provide their clientele with a competitive edge.
All signs indicate optimistic growth of the 2024 legal market despite the uncertainty leading up to the upcoming election. Firms are likely expecting clarity before committing to expansive hiring. With such anticipated lateral movement, it is suggested to initiate your career progression before getting lost in the rush.
Read the full analysis here.