JD Journal » Legal Jobs

2011 Ends on Sour Note for Legal Services Industry

jim — Mon, 09 Jan 2012 21:57:06 +0000

The month of December saw 200,000 jobs added in the United States but the industry of legal services suffered a loss of 1,800 jobs for the same month. These numbers were released by the United States Department of Labor last Friday.

The loss equates to 0.16 percent, and it is probably unsettling news for support staff and professionals in firms trying to reduce costs in 2012. Jerome Kowalski, the founder of the consulting company Kowalski & Associates, said that this really is not a surprise.

“The ultimate cause is the attempt by management at major law firms to increase profitability of their law firm practice. The problem is over the course of last year, law firm revenues went up, on average, between 3 and 4 percent, which just about keeps up with the rate of inflation, but expenses went up approximately 9 percent,” Kowalski said.

Kowalski was originally estimating that 2,000 jobs would be lost in the legal services industry, saying that the actual numbers surprised him. Kowalski also said that the data shows there will be more cutbacks in general staff members and maybe even lawyers during 2012.

“Over past three or four years, most firms have cut jobs on the professional side, starting with associates and even up to partners, to be as lean and trim as they can. So there’s not much more fat to slice away in most places,” he said.

The report released by the Department of Labor, the job data for December for the legal industry was 2,700 fewer than the numbers in December of 2010. As the 2011 year was closing, experts in the field were expecting a stale year for jobs in the industry.

There is pressure to reduce spending from corporate clients and an increase in competition for legal products from outsourcing companies and from legal firms. These have left firms operating very cautiously.

“The overall general health of the economy, the overall business climate, is one of caution, and sometimes, fear,” Jim LaRosa, co-founder of JuriStaff Inc. said.

A rut developed in 2011′s third quarter within the legal industry when it came to a services demands. This rut occurred while expenses reached a high for the past two years for the industry. In the third quarter the rates for attorney hiring jumped by 2.4 percent, which was the highest rate for 2011. On the other hand, the numbers for hours-per-layer productivity rates declined by 1.4 percent.

“If these hiring patterns continue, and if demand does not increase to keep pace, firms will likely face further declines in productivity, as well as increasing pressures on profitability,” the Peer Monitor Index from the Hildebrandt Institute said.

Proposed Law School Accreditation Standards to Change Reporting of Graduate Employment

aostler — Wed, 23 Mar 2011 20:20:01 +0000

The American Bar Association has made new drafts to its law school accreditation standards. These proposed changes would change the way that law schools report employment information for their graduates, as well as making the requirements for passing the bar stricter, and allowing distance education students to take more credit hours. Several other major changes have also been proposed.

According to a letter from the consumer information subcommittee of the Standards Review Committee of the ABA, the requirement that exists for law schools to publish “placement rates” and “basic consumer information” leaves a lot open to interpretation.

The subcommittee also wrote the following: “Not surprisingly, with such a vague standard, schools’ practices vary widely. Some schools provide detailed information; others provide a bare minimum.”

According to the new proposal, the employment status of students after nine months would be disclosed by law schools, in addition to the percentage of the students in law school-funded jobs. They would also be required to give information about the percentage of graduates with employment that requires bar passage and those who hold non-legal jobs. Schools will also be required to specify how many students they have in part-time and full-time jobs.

These proposals will be discussed in Chicago by the Standards Review Committee on April 2 and 3. It will have an open forum as part of the meeting so that other parties can give their own comments about the proposals.

February A Rough Month For The Legal Industry

joshua — Mon, 07 Mar 2011 16:28:42 +0000

Looking at the broad picture, the economic recovery appears to finally be taking hold in the labor market. Modest gains in employment last month pushed the national unemployment rate down below 9%, but things were much more bleak within the legal industry. According to the latest numbers from the Bureau of Labor Statistics, February saw a loss of 2900 jobs in the legal sector.

The report, which was released on Friday, showed a national gain of 192,000 non farm jobs for the month, with the largest growth coming in manufacturing and construction, although this followed a month of widespread construction job losses, attributable to harsh weather.

Emmetts Adding 100 Positions

joshua — Fri, 18 Feb 2011 15:38:43 +0000

UK law Firm Emmetts announced that it is planning to add 100 new positions this year. The firm, which operates three offices in the UK, will hire 60 new lawyers and 40 support staff. The move is based on a surge in negligence claims against companies, according to the firm.

Emmetts was founded in 2004 by husband and wife Richard and Lindsay Emmett. Originally operating out of their home in Preston, the firm has grown rapidly and now takes in around 1000 new clients per month from three offices in Preston, Longridge and London.

Weekend Roundup

joshua — Mon, 06 Dec 2010 16:18:17 +0000

Good morning! Today is Monday, December 6, and here’s a look back at the weekend…

Oral arguments in the prop 8 case will be broadcast today on CSPAN…

Jobs declined in the legal sector for the second straight month…

and Skadden is closing its office in San Francisco…

For Two Consecutive Months, Legal Jobs Decline

marvins — Mon, 06 Dec 2010 16:07:16 +0000

The Bureau of Labor and Statistics monthly report revealed that there was a significant decline in legal sector jobs in November despite the positive prediction of many economic analysts early this week. The report cited that the November job growth in the private sector showed a slower uptick than expected. The report also said that around 1,100 jobs in November have been lost in the legal services sector, after a previous industry decline in October. The last gain in the legal sector was recorded in September. The BLS reported that 1,400 new jobs were created in September, but the industry has still failed to produce any significant recovery on job creation from 2009.

The BLS report also mentioned that overall only 39,000 positions were added to the country’s economy in November, a big shortage from the industry prediction of a 150,000 job increase. Meanwhile, other sectors posted notable developments in terms of job growth. For instance, the temporary help services sector added 40,000 positions, the most of any industry for the time period. The private sector registered an increase of 50,000 jobs and health care jobs also expanded by 19,000. The US unemployment rate is currently at 9.8%, down from 10% in 2009.

800 Legal Jobs Go Bye-Bye In July … But Still Reflect An Improvement

eric — Mon, 09 Aug 2010 16:38:52 +0000

While reading through the tea leaves of the latest U.S. Labor Statistics Bureau report, which showed an overall loss of 130,000+ jobs for the month of July, AmLaw Daily reported today that at least 800 of the jobs that went poof were in the legal field. Hold your horses, though. This is, as the piece states, actually an improvement from June, which saw some 3,000 jobs go the way of the dodo.

With the national unemployment average holding steady (not, necessarily, a good thing) what does this mean for the legal industry’s job market? At best, job cuts there seem to be slowing. At worst, the current numbers could reflect an ongoing lack of stability. Let’s wait and see what next month brings.

Report Shows Legal Sector Again Shedding Jobs

joshua — Tue, 06 Jul 2010 14:59:16 +0000

The latest numbers from the Bureau of Labor Statistics showed the legal sector lost 3,900 jobs in June. And that’s not all the bad news. After initially stating the legal sector added 300 jobs in May,that number has been revised to a loss of 600 jobs.

According to The American Lawyer, the legal job market has seen a loss of 22,200 jobs since this time a year ago.

In all, the U.S. lost 125,000 jobs in June, which is largely the result of temporary 2010 Census jobs having ended. The private sector added 83,000 jobs and the overall unemployment rate fell from 9.7 percent to 9.5 percent.

NALP Predicts Weak Jobs Market for Law Grads

joshua — Fri, 25 Jun 2010 18:30:05 +0000

While the nation slowly emerges from the Great Recession, the legal jobs market for law school grads is expected to show little sign of improving in the next two years, according to a report from the National Association for Law Placement.

Jim Leipold, executive director of the NALP, told the U.S. News & World Report that raw employment numbers for the class of 2010 are expected to be even lower than last year’s class and the job prospects for the class of 2011 are also likely to be “very compromised.”

“The Class of 2012 will be the first class for which we might see some kind of uptick in employment,” Leipold said. “I’m not making a prediction that it will recover in 2012; I’m saying it probably won’t recover much before then.”

Leipold noted that students from the classes of 2010 and 2011 had fewer summer opportunities to latch on with law firms because many firms reduced their summer programs or discontinued them altogether. According to Leipold, about 25 percent of firms have cancelled their summer programs.

Study: Third Quarter Legal Hiring Looks Promising

joshua — Wed, 09 Jun 2010 20:18:38 +0000

The legal world is optimistic that more jobs will be forthcoming in the third quarter of the year, according to the quarterly Robert Half Legal Hiring Index.

Exactly one-third of lawyers surveyed said they plan to add jobs in the next quarter and just two percent expect to cut staff. The net 31-percent hiring increase is up five points from the previous quarter’s survey.

The hiring index is conducted by an independent research firm and is based on telephone interviews with 100 lawyers at law firms with 20 or more employees; and 100 corporate lawyers at companies with 1,000 or more employees. All of the respondents have hiring authorization within their organization.

Charles Volkert, executive director of Robert Half Legal, noted in a press release that 83 percent of respondents expressed confidence in their organizations’ prospects for growth.

”In particular, law firms specializing in bankruptcy, foreclosure and litigation are adding staff to meet increased demand for their services,” Volkert said. “Successive waves of bankruptcies and restructurings, along with a surge in labor relations and employment-related litigation, are fueling hiring.”

The survey also found that, despite a competitive legal jobs market, nearly half respondents (47 percent) said it is challenging to find skilled legal professionals, which is a 6 percent increase from the previous survey.

“Specific attributes that may have been listed as ‘preferable’ in a job posting in the past may now be ‘required,’ which narrows the range of viable candidates for a given position,” Volkert said.

Clifford Chance Announces 22 New Partners; 3 in U.S. Offices

joshua — Tue, 04 May 2010 20:06:46 +0000

Today, Clifford Chance announced 22 new partners in various practices and regions of the Firm, effective May 1. Six partners each were appointed to the Firm’s Litigation and Dispute Resolution practice, Corporate practice, and Finance practice.

According to the press release at the Firm’s website, David Childs, Clifford Chance Global Managing Partner was quoted as saying: “It is always a pleasure to welcome the next generation of talent into the partnership. These new partners all enjoy strong client relationships and have a deep understanding of the markets, sectors and regulatory issues that are so important to global businesses today. Moreover, they make an invaluable contribution to the development of the firm through their personal investment in expanding the firm’s intellectual capital, in fostering our talent and through their active involvement in important pro bono activity. I look forward to working with them all.”

Clifford Chance is one of the world’s leading law firms with 29 offices in 20 countries and 3,600 legal advisors globally. The firm is structured around six global practice areas: Banking and Finance, Capital Markets, Corporate/M&A, Litigation and Dispute Resolution, Real Estate, and Tax, Pensions and Employment.

Florida Default Law Group Under Investigation by Florida AG

joshua — Mon, 03 May 2010 13:29:57 +0000

Tampa-based Florida Default Law Group, one of the largest foreclosure firms in the state, is under investigation by the office of Florida Attorney General Bill McCollum for possibly “fabricating and/or presenting” misleading documents in foreclosure cases.

Investigators say Florida Default Law Group firm “appears to be” a client of Lender Processing Services (LPS), a Jacksonville company which is also under investigation by the attorney general’s office.

According to the April 30 Wall Street Journal article, LPS, which processes and sometimes produces documents needed by banks to prove they own the mortgages, has acknowledged errors with documents they processed that were filed in foreclosure cases and said they have been fixed. An LPS spokeswoman said on Thursday the company is “willing to cooperate with any regulatory body that contacts us.”

In the May 1 article at ecreditdaily.com, the Florida attorney general’s office was quoted as saying in reference to the firm’s paperwork under review: “These documents have been presented in court before judges as actual assignments of mortgages and have later been shown to be legally inadequate and/or insufficient.”

Banks, and ‘foreclosure-mill’ law firms, and the way they take control of homes from borrowers in default, are fast becoming the focus of mounting scrutiny by Florida judges and federal prosecutors.

Legal Sector Job Losses Continues to Decline

joshua — Fri, 05 Mar 2010 18:01:26 +0000

The number of job losses in the legal services industry continued to decline in February, according to the latest report from the U.S. Bureau of Labor Statistics released Friday. The legal services sector shed 100 jobs last month, a decrease from the 1,100 jobs that were lost in January. During the past 12 months 37,100 legal service industry jobs were cut.

The news comes on the heels of a report this week that 26 percent of law firms in the U.S. planned to expand in the second quarter of 2010. Overall in the U.S., 36,000 nonfarm payroll jobs were shed in February. The unemployment rate managed to hold steady at 9.7 percent.

Morning Roundup

joshua — Mon, 08 Feb 2010 12:30:27 +0000

Good morning everyone! Today is Monday, February 8, and it’s time to look back at Friday’s news…

Clyde & Co opened its third US office in New Jersey…

January was another bad month for the legal sector, with another 1,100 jobs lost…

Bernstein Liebhard abandoned its endeavor for Florida state pension work after admitting to inaccuracies in its application to the state committee…

Barnes & Thornburg added 5 laterals in Atlanta…

Mintz Levin’s consulting affiliate has a new senior vice president…

Several major firms in DC took a half day due to weather…

The Glover Park Group has a new managing director of its government affairs practice…

Cooley Godward picked up a team of energy lawyers from Alston & Bird…

Another partner has moved to Latham from White & Case…

Pomerantz is investigating Koss Corp. on behalf of its investors…

Fried Frank has new office space in DC…

Manatt named a new partner in LA…

and President Obama nominated two more US Attorneys…

Morning Roundup

joshua — Tue, 12 Jan 2010 12:25:56 +0000

Good morning everyone! Today is Tuesday, January 12, and here’s a look back at yesterday’s stories.

Thomas Russo has been offered the GC job at AIG…

A court in New York has rejected the SEC’s attempt to broaden its case against B of A…

Another 2100 legal jobs were lost in December, according to the BLS…

The Supreme Court has temporarily blocked broadcasts of the proposition 8 trial…

and Latham & Watkins is opening an office in Houston…

2100 Legal Jobs Lost in December

joshua — Tue, 12 Jan 2010 01:34:51 +0000

According to the latest report from the Bureau of Labor Statistics, the legal sector dropped another 2100 jobs in December, while the job market as a whole lost 85,000 jobs.

In November, the National Law Journal reported that so far 5,259 attorney positions had been cut by the top 250 law firms, with Latham & Watkins (who just opened in Houston) cutting the most jobs at 444. Those numbers do not include staff positions.

Our last layoff report from biglaw was early November. We received no tips regarding layoffs in December. If you were one of the 2100 that lost your job last month, tell us about it here.

5259 Fewer Jobs at Top 250 Law Firms

joshua — Mon, 09 Nov 2009 19:50:07 +0000

According to a report issued by the National Law Journal, the top 250 law firms cut 5,259 attorney positions this year in the worst year since the NLJ began compiling the statistics. The firm shedding the most jobs was Latham & Watkins which has 444 fewer lawyers than last year. The number of partners grew by one percent over all, while associates were cut at the rate of 8.7% and of counsel and staff lawyer positions shrunk by 8.9%.

Morning Roundup

joshua — Tue, 06 Oct 2009 15:54:41 +0000

Good morning everyone! Here’s a quick recap of yesterday’s news…

Crowell & Moring is asking staff to voluntarily resign…

Kelley Drye picks up two big names from Bryan Cave…

DLA Piper confirms they will pay associate bonuses this year…

The legal sector lost about 2,000 jobs in September…

and the Supreme Court has begun its new term…

FTC Closes its Doors to New Applicants

joshua — Tue, 29 Sep 2009 15:35:36 +0000

Deferrals, layoffs, low offer rates for summer associates… what’s next? Apparently things have gotten so bad that even the federal government doesn’t want any more lawyers. The FTC announced today that it was closing its application process for current positions early – they already have more applicants than they can handle.

Morning News Roundup for Wednesday

Erik Even — Wed, 15 Apr 2009 13:00:48 +0000

Good morning! The top stories:

Jenner & Block has opened its first California office in Los Angeles…

Cayman Islands law firm Conyers Dill & Pearman will open an office in Brazil…

McKenna Long & Aldridge is cutting starting salaries for entering first-year associates by $20,000…

Seattle’s Perkins Coie has cut 12 attorneys and 26 staff…

Greenberg Traurig is cutting the salaries of its summer and first year associates by 10%…