Market Overview
The second quarter of 2025 has presented a nuanced view of the US legal hiring market. While we have observed an overall increase in hiring across key practice areas such as mergers and acquisitions (M&A), private equity, and leveraged finance, the growth has not been as rapid as expected. Litigation has remained stable, contributing to a general upward trend in the market, with more job openings than closings so far this year.
Despite the positive aspects, hiring decisions have been approached with caution, primarily due to uncertainty surrounding the current administration’s tariff policies. This uncertainty has created a more hesitant atmosphere among companies, even though market fundamentals remain strong. Nevertheless, expectations for the remainder of 2025 are optimistic, with most indicators suggesting that hiring demand will continue to grow throughout the year.
Sector Dynamics
Transactional practice areas continue to lead demand, with hiring in M&A, private equity, finance, and to a lesser extent, capital markets all showing positive trends. Although activity in these areas has grown, there is a broad consensus that it has not reached the levels many predicted at the start of the year, with tariff-driven uncertainty in the global economy acting as a brake.
Firms remain generally committed to growing these areas, but we have observed that offers are becoming more targeted. Compensation increases appear to be slowing overall, but some firms are taking more aggressive positions in key sectors. Notably, partnership-level recruitment has seen firms willing to take calculated risks on candidates with established books of business in corporate and transactional areas.
For associates, a more competitive market has emerged, with some firms offering full-year-end bonuses mid-year, signing bonuses, and more offers per candidate than we have seen in recent years. This level of competition is particularly pronounced in transactional practices, indicating sustained demand even as some firms tread carefully on the macroeconomic outlook.
Key Insights
A unique and somewhat unexpected dynamic has emerged in 2025 regarding the relationships between elite firms and the current administration. Several of the most prominent law firms (including some of the V20) have struck notable agreements to commit significant pro bono resources to government initiatives.
This development has had a polarizing effect on the candidate market, with political considerations now frequently coming up in hiring conversations. Candidates increasingly want to know where firms “stand” concerning these deals before making decisions, and the topic has become a standard part of negotiation and interview processes.
Interestingly, this political overlay has created pockets of both increased and decreased mobility. Some candidates are actively seeking to leave firms that have made deals with the administration, while others are pursuing them, viewing these commitments as a positive development. Despite this complexity, these dynamics have not led to an overall cooling in hiring. Instead, demand remains strong, with firms maintaining healthy recruitment pipelines.
Future Predictions
Looking ahead to the second half of 2025 and into early 2026, we anticipate that transactional hiring will remain a key driver of legal recruitment demand. While the rate of growth may be slightly dampened by economic and policy uncertainty, the underlying demand remains strong, suggesting that the current cycle will last longer than initially forecast.
Rather than a sharp surge in hiring activity, we anticipate a more gradual but sustained increase through Q3 and Q4 2025, and into early 2026. This extended demand cycle could ultimately be a net positive for the market, supporting healthier, longer-term growth across the sector.
Compensation trends will likely stabilize, with fewer large-scale salary hikes expected than in recent years. However, targeted aggressiveness will persist where firms are eager to secure top talent, particularly for partners with portable business in transactional areas and for associates in high-demand sectors.
Expect to see continued use of signing bonuses, early payment of year-end bonuses, and multiple competing offers for strong candidates, all of which point to a market that, while cautious, remains fundamentally competitive and opportunity-rich.
[/fusion_text][fusion_text columns=”1″ column_spacing=”150″ hide_on_mobile=”small-visibility,medium-visibility” sticky_display=”normal,sticky” animation_direction=”left” animation_speed=”0.3″ animation_delay=”0″]Market Overview
The second quarter of 2025 has presented a nuanced view of the US legal hiring market. While we have observed an overall increase in hiring across key practice areas such as mergers and acquisitions (M&A), private equity, and leveraged finance, the growth has not been as rapid as expected. Litigation has remained stable, contributing to a general upward trend in the market, with more job openings than closings so far this year.
Despite the positive aspects, hiring decisions have been approached with caution, primarily due to uncertainty surrounding the current administration’s tariff policies. This uncertainty has created a more hesitant atmosphere among companies, even though market fundamentals remain strong. Nevertheless, expectations for the remainder of 2025 are optimistic, with most indicators suggesting that hiring demand will continue to grow throughout the year.
Sector Dynamics
Transactional practice areas continue to lead demand, with hiring in M&A, private equity, finance, and to a lesser extent, capital markets all showing positive trends. Although activity in these areas has grown, there is a broad consensus that it has not reached the levels many predicted at the start of the year, with tariff-driven uncertainty in the global economy acting as a brake.
Firms remain generally committed to growing these areas, but we have observed that offers are becoming more targeted. Compensation increases appear to be slowing overall, but some firms are taking more aggressive positions in key sectors. Notably, partnership-level recruitment has seen firms willing to take calculated risks on candidates with established books of business in corporate and transactional areas.
For associates, a more competitive market has emerged, with some firms offering full-year-end bonuses mid-year, signing bonuses, and more offers per candidate than we have seen in recent years. This level of competition is particularly pronounced in transactional practices, indicating sustained demand even as some firms tread carefully on the macroeconomic outlook.
Key Insights
A unique and somewhat unexpected dynamic has emerged in 2025 regarding the relationships between elite firms and the current administration. Several of the most prominent law firms (including some of the V20) have struck notable agreements to commit significant pro bono resources to government initiatives.
This development has had a polarizing effect on the candidate market, with political considerations now frequently coming up in hiring conversations. Candidates increasingly want to know where firms “stand” concerning these deals before making decisions, and the topic has become a standard part of negotiation and interview processes.
Interestingly, this political overlay has created pockets of both increased and decreased mobility. Some candidates are actively seeking to leave firms that have made deals with the administration, while others are pursuing them, viewing these commitments as a positive development. Despite this complexity, these dynamics have not led to an overall cooling in hiring. Instead, demand remains strong, with firms maintaining healthy recruitment pipelines.
Future Predictions
Looking ahead to the second half of 2025 and into early 2026, we anticipate that transactional hiring will remain a key driver of legal recruitment demand. While the rate of growth may be slightly dampened by economic and policy uncertainty, the underlying demand remains strong, suggesting that the current cycle will last longer than initially forecast.
Rather than a sharp surge in hiring activity, we anticipate a more gradual but sustained increase through Q3 and Q4 2025, and into early 2026. This extended demand cycle could ultimately be a net positive for the market, supporting healthier, longer-term growth across the sector.
Compensation trends will likely stabilize, with fewer large-scale salary hikes expected than in recent years. However, targeted aggressiveness will persist where firms are eager to secure top talent, particularly for partners with portable business in transactional areas and for associates in high-demand sectors.
Expect to see continued use of signing bonuses, early payment of year-end bonuses, and multiple competing offers for strong candidates, all of which point to a market that, while cautious, remains fundamentally competitive and opportunity-rich.
[/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 |