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Author Topic: Economy and legal hiring  (Read 762 times)

wardwilliams

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Economy and legal hiring
« on: January 11, 2008, 12:53:45 PM »
If the economy does go into recession as some are predicting, what effect will it have on the LEGAL employment market? I would think a very bad one, but I have heard some say that may be false--that if the economy goes south it may actually HELP the legal-hiring market

xferlawstudent

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Re: Economy and legal hiring
« Reply #1 on: January 11, 2008, 01:19:35 PM »
Most legal jobs are countercyclical.  This means that when the economy is bad, these jobs expereince growth and there is an increase in demand for them.  Lawyers are a good example of a countercyclical labor market.  For example, when the economy is down, crime rises so there is an increase in demand for judges, prosecutors, public defenders and other defense attorneys.  On the civil side, demand increases for bankruptcy and foreclosure lawyers.  As long as the economy avoids stagflation, even real estate lawyers would expereince a boom (assuming interest rates fall, which would likely happen in recession). 

Obviously, you could point to some examples of areas where lawyers demand mimics the overall economy, but the trick is to diversify your practice so you can perform well in any market.  Large firms will be unaffected by changing economic conditions because their practice areas are vastly diversified.

So, the bottom line is that generally legal services jobs are countercylical in part because our business involves fixing what went wrong, usually involving economic or social distress.   

Jumboshrimps

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Re: Economy and legal hiring
« Reply #2 on: January 11, 2008, 04:08:04 PM »
Well, here's to the economy going in the shitter!!!

TheNewGuy

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Re: Economy and legal hiring
« Reply #3 on: January 12, 2008, 01:08:20 AM »
that wall street journal article that acknowledged the law market hadn't expanded in recent years said a bouyant economy probably had something to do with a decrease in securities ligigation etc...


xferlawstudent

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Re: Economy and legal hiring
« Reply #4 on: January 12, 2008, 01:37:06 PM »
yeah, securities litigation would probably increase in a bad economy.  Everyone would be trying to sue because they got screwed in the bear market.