General Overview

The legal recruitment market in the US remained highly active in Q1 2025, with a notable surge in lateral hiring across key practice areas. This quarter saw an influx of new hires, particularly following the distribution of year-end bonuses, which fueled an increase in candidate movement. Additionally, some firms re-engaged with candidates from previous months, reflecting an intensified focus on securing top talent in a competitive landscape.

The job market remains strong, and while external headlines may suggest instability, legal recruitment continues to demonstrate resilience. Many firms are not just hiring but also making competitive offers to attract and retain high-caliber professionals.

Trends and Insights

The most prominent trend in Q1 has been the sustained demand for junior and mid-level associates, particularly within transactional practice areas. Leveraged finance and structured finance remain two of the most sought-after specializations, with firms competing for experienced talent.

A notable trend has been the rise in competitive job offers. Many candidates now receive multiple offers—sometimes as many as three or four. This competition has prompted firms to enhance their incentives. As a result, we have seen more frequent offerings of signing bonuses, title promotions, and accelerated career progression. Senior associates making lateral moves are increasingly being promoted to counsel or even partner levels when joining new firms, underscoring the intense nature of the current job market.

Sector and Role Dynamics

The most active practice areas are finance, M&A, and capital markets, which have seen a sharp rise in hiring activity. Larger firms have re-engaged in transactional recruitment following a quieter period post-2021/2022, signaling renewed confidence in these sectors.

Interestingly, demand has also increased in traditionally less prominent areas, particularly in Washington, D.C. Regulatory law, government contracts, and international trade have seen significant hiring growth, likely driven by the new administration’s policies and regulatory shifts. Firms are expanding their regulatory teams as clients seek to navigate an increasingly complex legal landscape.

Real estate has also experienced a resurgence, with law firms expanding their teams to capitalize on growing transactional opportunities in this space.

Compensation Developments

Salary levels have remained strong, particularly for mid-level associates in high demand. Premiums are especially evident in transactional practice areas, where firms struggle to find enough talent to meet demand.

Future Predictions

Looking ahead to the rest of 2025, we anticipate further growth in transactional practice groups, particularly in finance, M&A, and capital markets. Regulatory and government contract law are also expected to see sustained demand, particularly in D.C., as firms navigate evolving legislative and compliance landscapes.

In terms of hiring trends, the dominant focus will remain on junior and mid-level associates, with firms continuing to compete for top talent in these segments. Given the increasing competitiveness of offers, we expect salary inflation to persist, particularly in niche transactional areas where hiring shortages remain acute.

Navigating this competitive market in 2025 will be the biggest challenge for both candidates and firms. Firms must refine their hiring strategies, while candidates should be strategic in negotiating offers to maximize their career trajectory.

Key Takeaways

• Legal hiring remains strong. Despite external market concerns, legal recruitment continues to grow, with firms actively competing for top talent.
• Lateral hiring is booming. The market is as mobile as it has been since 2021–2022, with a significant uptick in offers and candidate movement.
• Competitive offers are essential. Firms must increase offer rates and maintain aggressive hiring strategies, as candidates frequently receive multiple competing offers.
• Bonuses and promotions are on the rise. Signing bonuses and title promotions are becoming more common, with senior associates increasingly being elevated to counsel or partner upon making lateral moves.
• Transactional practice areas are the biggest winners. Finance, M&A, and capital markets continue to see the highest hiring demand.
• Regulatory law is gaining traction. In Washington, D.C., firms are expanding teams in government contracts, international trade, and regulatory work to navigate the evolving legal landscape.
• Mid-level associates are scarce. Third- and fourth-year associates are in high demand, leading firms to enhance compensation and streamline hiring processes.
• Real estate hiring is rebounding. This sector has renewed activity, presenting opportunities for firms looking to grow their teams.