Q3 Overview
The legal recruitment market in the US saw increased hiring levels in Q3, although the rise was not dramatic. Several key economic factors stabilized during the quarter, such as interest rate cuts and easing inflation. While some uncertainty remains, the overall sentiment in the market improved and dealmaking activity across the US picked up considerably. This in turn created demand for attorneys in transactional areas.
As the US approaches a tight election, political uncertainty continues to have a modest impact on hiring, causing some firms to proceed with caution. However, despite these challenges, the legal market has shown resilience with hiring activity remaining robust throughout Q3.
Hiring Activity and Salaries
The most active sectors for recruitment during Q3 were renewables, oil & gas, financial services, and data, reflecting broader economic trends and the increasing focus on energy transition and digitalization. From a practice area perspective, finance remained a key driver of demand, with structured finance, leveraged finance, and project finance all seeing significant hiring activity. There was also a notable uptick in hiring related to M&A and private equity, continuing a trend from Q2.
One of the most interesting developments in Q3 was the return of hiring in the capital markets sector. After a period of slow activity, elite firms have begun to recruit laterally in both equity and debt capital markets, marking a potential turning point for this area of law, which has been subdued since late 2021.
In terms of salaries, there were no significant changes reported in Q3. However, there was an increase in the use of signing bonuses, particularly as year-end bonus periods approach. Firms have been offering signing bonuses to candidates to compensate for potential losses from end-of-year bonuses. Mid-level associates in high-demand areas such as M&A and finance continued to command premiums, although the market for other roles remained stable.
In-Demand Skill Sets and Roles
The most sought-after professionals during Q3 were junior to mid-level associates. This demand is largely driven by the increase in transactional workflows, with AmLaw50 firms ramping up their hiring efforts. Private equity and finance-related associates were particularly in demand, and the resurgence of capital markets hiring has added further momentum to the recruitment market.
In addition, finding strong candidates in structured finance and securitization has proven challenging, especially in key markets like New York, where demand continues to outpace supply.
Forecast for Q4
Hiring activity is expected to increase in Q4 as candidates begin to contemplate job moves before year-end. Many candidates prefer to accept new roles before the new year but start at the firms in early 2025 to secure their bonuses. This allows firms to make more aggressive offers to fill open positions, as they avoid the need to cover these bonuses as part of their offers.
In terms of skill sets, finance associates are expected to remain in high demand as private equity continues to pick up the pace. Capital markets are also set for further growth, with AmLaw50 firms increasingly focusing on these areas.
Challenges for Candidates and Employers in Q4
For candidates, the main challenge in Q4 will be deciding whether to move before the end of the year or wait until January when the market traditionally heats up. The timing is crucial, as making a move too early could result in forfeiting end-of-year bonuses, while waiting too long could mean facing increased competition in January when more candidates flood the market.
Employers, on the other hand, will face the challenge of making competitive offers that attract top talent without overextending on year-end bonus coverage. Retaining key staff will also be difficult as candidates may start exploring the market in anticipation of a January move, having already secured their billable hours to qualify for their bonuses.
Looking Ahead
As Q4 progresses, the legal recruitment market is expected to remain robust, particularly in transactional areas such as private equity, M&A, and capital markets. Energy, renewables, and financial services will continue to be key sectors for hiring, while salaries are likely to remain stable, especially given the series of increases over the last two years. Mid-sized firms may feel pressure to increase their compensation packages to stay competitive with the larger firms.
Although some uncertainty remains, the lateral hiring market across AmLaw50 firms is making a strong comeback. Both candidates and employers will need to be strategic about their moves as the competition for top-tier talent intensifies towards the end of the year.
[/fusion_text][fusion_text columns=”1″ animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”small-visibility,medium-visibility” sticky_display=”normal,sticky” column_spacing=”150″]Q3 Overview
The legal recruitment market in the US saw increased hiring levels in Q3, although the rise was not dramatic. Several key economic factors stabilized during the quarter, such as interest rate cuts and easing inflation. While some uncertainty remains, the overall sentiment in the market improved and dealmaking activity across the US picked up considerably. This in turn created demand for attorneys in transactional areas.
As the US approaches a tight election, political uncertainty continues to have a modest impact on hiring, causing some firms to proceed with caution. However, despite these challenges, the legal market has shown resilience with hiring activity remaining robust throughout Q3.
Hiring Activity and Salaries
The most active sectors for recruitment during Q3 were renewables, oil & gas, financial services, and data, reflecting broader economic trends and the increasing focus on energy transition and digitalization. From a practice area perspective, finance remained a key driver of demand, with structured finance, leveraged finance, and project finance all seeing significant hiring activity. There was also a notable uptick in hiring related to M&A and private equity, continuing a trend from Q2.
One of the most interesting developments in Q3 was the return of hiring in the capital markets sector. After a period of slow activity, elite firms have begun to recruit laterally in both equity and debt capital markets, marking a potential turning point for this area of law, which has been subdued since late 2021.
In terms of salaries, there were no significant changes reported in Q3. However, there was an increase in the use of signing bonuses, particularly as year-end bonus periods approach. Firms have been offering signing bonuses to candidates to compensate for potential losses from end-of-year bonuses. Mid-level associates in high-demand areas such as M&A and finance continued to command premiums, although the market for other roles remained stable.
In-Demand Skill Sets and Roles
The most sought-after professionals during Q3 were junior to mid-level associates. This demand is largely driven by the increase in transactional workflows, with AmLaw50 firms ramping up their hiring efforts. Private equity and finance-related associates were particularly in demand, and the resurgence of capital markets hiring has added further momentum to the recruitment market.
In addition, finding strong candidates in structured finance and securitization has proven challenging, especially in key markets like New York, where demand continues to outpace supply.
Forecast for Q4
Hiring activity is expected to increase in Q4 as candidates begin to contemplate job moves before year-end. Many candidates prefer to accept new roles before the new year but start at the firms in early 2025 to secure their bonuses. This allows firms to make more aggressive offers to fill open positions, as they avoid the need to cover these bonuses as part of their offers.
In terms of skill sets, finance associates are expected to remain in high demand as private equity continues to pick up the pace. Capital markets are also set for further growth, with AmLaw50 firms increasingly focusing on these areas.
Challenges for Candidates and Employers in Q4
For candidates, the main challenge in Q4 will be deciding whether to move before the end of the year or wait until January when the market traditionally heats up. The timing is crucial, as making a move too early could result in forfeiting end-of-year bonuses, while waiting too long could mean facing increased competition in January when more candidates flood the market.
Employers, on the other hand, will face the challenge of making competitive offers that attract top talent without overextending on year-end bonus coverage. Retaining key staff will also be difficult as candidates may start exploring the market in anticipation of a January move, having already secured their billable hours to qualify for their bonuses.
Looking Ahead
As Q4 progresses, the legal recruitment market is expected to remain robust, particularly in transactional areas such as private equity, M&A, and capital markets. Energy, renewables, and financial services will continue to be key sectors for hiring, while salaries are likely to remain stable, especially given the series of increases over the last two years. Mid-sized firms may feel pressure to increase their compensation packages to stay competitive with the larger firms.
Although some uncertainty remains, the lateral hiring market across AmLaw50 firms is making a strong comeback. Both candidates and employers will need to be strategic about their moves as the competition for top-tier talent intensifies towards the end of the year.
[/fusion_text][fusion_text animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″ hide_on_mobile=”large-visibility” sticky_display=”normal,sticky”]Salaries
| Role New York, DC, San Fran: The Elite (AmLaw 100) |
Private Practice – US Firm Permanent Salary Per Annum US$ Range (Base Salary) |
|---|---|
| Partner (Equity) | 1.4m (average total comp) |
| Counsel / Salaried Partner | 450 – 700k |
| 8th year | 365 – 425k |
| 7th year | 350 – 420k |
| 6th year | 330 – 390k |
| 5th year | 305 – 365k |
| 4th year | 275 – 310k |
| 3rd year | 240 – 260k |
| 2nd year | 215 – 235k |
| 1st year | 205 – 225k |
| New York: Mid Market (AmLaw 100 -200) |
Private Practice – US Firm Permanent Salary Per Annum US$ Range (Base Salary) |
|---|---|
| Partner (Equity) | 800k (average total comp) |
| Counsel / Salaried Partner | 315 – 450k |
| 8th year | 300 – 415k |
| 7th year | 275 – 400k |
| 6th year | 255 – 370k |
| 5th year | 240 – 345k |
| 4th year | 225 – 295k |
| 3rd year | 200 – 250k |
| 2nd year | 180 – 225k |
| 1st year | 150 – 215k |