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Quarter 1 Overview
In the Middle East, hiring certainly increased during Q1. The whole region, particularly the Gulf Cooperation Council (GCC) countries, is experiencing significant economic growth and development, driven by a number of factors. For example, high oil prices are providing a strong financial foundation for government and private sector projects, leading to increased legal needs across various sectors. Infrastructure development means that large-scale plans require support in areas such as construction, finance, and dispute resolution. Many Middle Eastern countries are also diversifying their economies, attracting foreign investment in sectors including technology, tourism, and renewable energy. This creates demand for legal expertise in areas such as foreign direct investment, mergers and acquisitions, and intellectual property.
We have also seen a shifting legal landscape, with regulatory reforms and liberalisation efforts in several Middle Eastern countries, creating new frameworks and opportunities. This requires expertise in navigating the evolving environment and complying with new regulations. In addition, many law firms in the Middle East offer competitive salaries and benefits packages to attract and retain top talent. This includes tax-free salaries, housing allowances, and other incentives, making it an attractive career option for lawyers worldwide. While the market in the Middle East is expanding, it is important to note that it is also complex and requires careful consideration. Understanding the specific legal and cultural nuances of the region is therefore crucial for success.
Overall, at the end of Q1 the market is in a positive position. Firms have navigated the economic uncertainties of a turbulent 2023 and are largely now looking to grow strategically. Naturally, this growth is very much location and practice area-specific, based on more local aspects. For example, Europe is the global head of competition law for several reasons, including early adoption and enforcement, as well as being the basis for several global competition and anti-trust frameworks. On the other hand, within the Middle East, transactional-led work is booming due to the increased economic diversification within the region.
Hiring Activity and Salaries
In terms of industries and locations, the highest levels of hiring were seen across Corporate – Paris; Leveraged Finance (LevFin) – London; and Competition – London. Corporate is an area where work is always available and consequently, there is an ever-present need to expand and hire: firms will, without fail, hire a good associate owing to the business of that area in terms of work. Meanwhile, LevFin seems to be a space across which a lot of firms are constantly hiring or looking for talent. As for Competition, although Europe remains the hub for this area, there has been a huge uptick and desire to grow in the UK. In fact, it is starting to transition into more of a ‘need’ than a ‘want’, as evidenced by a few top tier firms growing their practices. Overall, we have seen an increase in salaries for Newly Qualified (NQ) professionals in London and Brussels.
In Demand Skill Sets and Roles
Three key areas of expertise especially stood out during Q1. Firstly, Alternative Dispute Resolution (ADR), encompassing methods such as negotiation and mediation, which are increasingly used to resolve disputes efficiently and cost-effectively. With growing concerns about data breaches and cyber threats, lawyers specialising in cybersecurity and data privacy are also becoming increasingly valuable. The third skill set relates to sustainability and environmental law: as environmental regulations and sustainability concerns gain prominence, firms are likely to be seeking lawyers with expertise in these areas to advise clients on compliance and emerging trends.
Candidates in the shortest supply were top tier Corporate M&A associates in Paris and top tier mid-level tax associates in London. The reason for this is that in Paris, the Corporate market has been extremely active for the last six months and the majority of people have either already made a move or have decided that they are not going to do so for any reason. In London, Corporate Tax has been a busy market for around a year now, and, as the talent pool for top tier tax associates is rather small, it has been hard to find people who are still open to making a change. This is obviously becoming a more sought-after skill set as people start to approach partnership tracks.
Forecast for Q2
It is anticipated that we will see a rise in hiring levels during Q2. According to ONS, UK employment rates have increased to 75.8% compared to the previous year. This shows that, post-pandemic, recruitment is becoming a lot more consistent, and we are now seeing a number of our clients from top US law firms reaching out to discuss the current talent pool and how we can help them with new hiring opportunities.
Significant development is especially likely in law firms specialising in regulatory compliance (such as data privacy and environmental law), M&A activity (with the caveat that this continues to rise, of course), and sectors experiencing growth (for example, technology and infrastructure). As in the previous quarter, we will also potentially see a continued increase in demand for lawyers with expertise in ADR, cybersecurity and data privacy, and sustainability and environmental law. In terms of the talent pool, the hardest to find candidates will almost certainly mirror the picture in Q1 and for exactly the same reasons.
Salaries appear to be on course to rise in Q2, thanks to fierce competition between law firms to attract and retain the best talent. We are already seeing an increasing demand for senior lawyers in Corporate – Paris and Competition – Brussels, and salary is typically dependant on their profiles. For example, in some firms counsel salary can range from 150k to just under 200k EUR based on their background, which leaves a lot of room for negotiation if they have top tier profiles, exceptional experience or if the market is saturated with demand and they have received another offer.
Challenges for Candidates and Employers in Q2
A key challenge for candidates in Q2 could well be competition, as increased hiring does not guarantee easy placement. Even if specific areas see an uptick in recruitment, the pool of qualified candidates may also rise, leading to more rivalry for available positions. Additionally, law firms could prioritise candidates with experience and skills in specific, high-demand areas such as data privacy, cybersecurity, or regulatory compliance. Global economic uncertainty, including possible inflation and geopolitical tensions, could also impact hiring decisions and lead to unexpected slowdowns.
Like many others, the legal sector is facing a talent shortage, which is likely to pose a challenge for employers. The lack of suitable candidates is particularly acute in specialist areas like data privacy, cybersecurity, and competition law, where the need is high but skilled professionals are limited. This scarcity could lead to increased competition for top talent and difficulty filling open positions.
To compound this, the legal landscape is constantly changing, owing to new regulations, technological advancements, and global economic shifts, requiring changes to legal professionals’ skill sets. Employers are seeking individuals who are adaptable, tech-savvy, and who have a strong understanding of intricate legal issues in an ever-evolving environment. Finding candidates with the right blend of legal expertise plus these additional skills can be difficult. An added complexity is the fragmented nature of the European legal market, with different regulations and practices across various jurisdictions. This can make it hard for firms to find qualified candidates for positions in specific locations, especially for cross-border work.
A further challenge for employers might be that the demand for skilled legal professionals, coupled with the talent deficit, leads to rising salary expectations. This could put pressure on law firms and companies to offer competitive compensation packages, potentially impacting their profit margins and hiring budgets. Additionally, while legal organisations are increasingly recognising the value of diversity and inclusion in their teams, attracting and retaining people from different backgrounds remains a challenge. This can be as a result of factors such as unconscious bias, lack of representation in leadership positions, and systemic barriers within the legal profession.
Looking Ahead
As European economies continue to recover, the good news is that the demand for legal services is expected to rise. This is likely to be across a lot of the transactional areas of law including M&A, Corporate and Private Equity. For example, a potential increase in M&A activity in certain European regions could fuel the need for corporate lawyers to handle transactions and legal due diligence. An evolving legal and regulatory landscape could also have an impact, as complexities in regulations (for example, data privacy, environmental protection and financial services) across different European nations require legal expertise to navigate these and ensure compliance. This has been in particular focus post-Brexit and continues to drive growth in the legal hiring space.
In addition, economic growth in specific European countries could lead to businesses expanding and requiring additional legal support in various areas such as contract drafting, litigation, and employment law. Furthermore, the continued growth of the European tech industry, particularly in areas such as AI, fintech and cybersecurity, necessitates legal support in areas including intellectual property, data security, and competition law, increasing demand for specialist lawyers.
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Quarter 1 Overview
In the Middle East, hiring certainly increased during Q1. The whole region, particularly the Gulf Cooperation Council (GCC) countries, is experiencing significant economic growth and development, driven by a number of factors. For example, high oil prices are providing a strong financial foundation for government and private sector projects, leading to increased legal needs across various sectors. Infrastructure development means that large-scale plans require support in areas such as construction, finance, and dispute resolution. Many Middle Eastern countries are also diversifying their economies, attracting foreign investment in sectors including technology, tourism, and renewable energy. This creates demand for legal expertise in areas such as foreign direct investment, mergers and acquisitions, and intellectual property.
We have also seen a shifting legal landscape, with regulatory reforms and liberalisation efforts in several Middle Eastern countries, creating new frameworks and opportunities. This requires expertise in navigating the evolving environment and complying with new regulations. In addition, many law firms in the Middle East offer competitive salaries and benefits packages to attract and retain top talent. This includes tax-free salaries, housing allowances, and other incentives, making it an attractive career option for lawyers worldwide. While the market in the Middle East is expanding, it is important to note that it is also complex and requires careful consideration. Understanding the specific legal and cultural nuances of the region is therefore crucial for success.
Overall, at the end of Q1 the market is in a positive position. Firms have navigated the economic uncertainties of a turbulent 2023 and are largely now looking to grow strategically. Naturally, this growth is very much location and practice area-specific, based on more local aspects. For example, Europe is the global head of competition law for several reasons, including early adoption and enforcement, as well as being the basis for several global competition and anti-trust frameworks. On the other hand, within the Middle East, transactional-led work is booming due to the increased economic diversification within the region.
Hiring Activity and Salaries
In terms of industries and locations, the highest levels of hiring were seen across Corporate – Paris; Leveraged Finance (LevFin) – London; and Competition – London. Corporate is an area where work is always available and consequently, there is an ever-present need to expand and hire: firms will, without fail, hire a good associate owing to the business of that area in terms of work. Meanwhile, LevFin seems to be a space across which a lot of firms are constantly hiring or looking for talent. As for Competition, although Europe remains the hub for this area, there has been a huge uptick and desire to grow in the UK. In fact, it is starting to transition into more of a ‘need’ than a ‘want’, as evidenced by a few top tier firms growing their practices. Overall, we have seen an increase in salaries for Newly Qualified (NQ) professionals in London and Brussels.
In Demand Skill Sets and Roles
Three key areas of expertise especially stood out during Q1. Firstly, Alternative Dispute Resolution (ADR), encompassing methods such as negotiation and mediation, which are increasingly used to resolve disputes efficiently and cost-effectively. With growing concerns about data breaches and cyber threats, lawyers specialising in cybersecurity and data privacy are also becoming increasingly valuable. The third skill set relates to sustainability and environmental law: as environmental regulations and sustainability concerns gain prominence, firms are likely to be seeking lawyers with expertise in these areas to advise clients on compliance and emerging trends.
Candidates in the shortest supply were top tier Corporate M&A associates in Paris and top tier mid-level tax associates in London. The reason for this is that in Paris, the Corporate market has been extremely active for the last six months and the majority of people have either already made a move or have decided that they are not going to do so for any reason. In London, Corporate Tax has been a busy market for around a year now, and, as the talent pool for top tier tax associates is rather small, it has been hard to find people who are still open to making a change. This is obviously becoming a more sought-after skill set as people start to approach partnership tracks.
Forecast for Q2
It is anticipated that we will see a rise in hiring levels during Q2. According to ONS, UK employment rates have increased to 75.8% compared to the previous year. This shows that, post-pandemic, recruitment is becoming a lot more consistent, and we are now seeing a number of our clients from top US law firms reaching out to discuss the current talent pool and how we can help them with new hiring opportunities.
Significant development is especially likely in law firms specialising in regulatory compliance (such as data privacy and environmental law), M&A activity (with the caveat that this continues to rise, of course), and sectors experiencing growth (for example, technology and infrastructure). As in the previous quarter, we will also potentially see a continued increase in demand for lawyers with expertise in ADR, cybersecurity and data privacy, and sustainability and environmental law. In terms of the talent pool, the hardest to find candidates will almost certainly mirror the picture in Q1 and for exactly the same reasons.
Salaries appear to be on course to rise in Q2, thanks to fierce competition between law firms to attract and retain the best talent. We are already seeing an increasing demand for senior lawyers in Corporate – Paris and Competition – Brussels, and salary is typically dependant on their profiles. For example, in some firms counsel salary can range from 150k to just under 200k EUR based on their background, which leaves a lot of room for negotiation if they have top tier profiles, exceptional experience or if the market is saturated with demand and they have received another offer.
Challenges for Candidates and Employers in Q2
A key challenge for candidates in Q2 could well be competition, as increased hiring does not guarantee easy placement. Even if specific areas see an uptick in recruitment, the pool of qualified candidates may also rise, leading to more rivalry for available positions. Additionally, law firms could prioritise candidates with experience and skills in specific, high-demand areas such as data privacy, cybersecurity, or regulatory compliance. Global economic uncertainty, including possible inflation and geopolitical tensions, could also impact hiring decisions and lead to unexpected slowdowns.
Like many others, the legal sector is facing a talent shortage, which is likely to pose a challenge for employers. The lack of suitable candidates is particularly acute in specialist areas like data privacy, cybersecurity, and competition law, where the need is high but skilled professionals are limited. This scarcity could lead to increased competition for top talent and difficulty filling open positions.
To compound this, the legal landscape is constantly changing, owing to new regulations, technological advancements, and global economic shifts, requiring changes to legal professionals’ skill sets. Employers are seeking individuals who are adaptable, tech-savvy, and who have a strong understanding of intricate legal issues in an ever-evolving environment. Finding candidates with the right blend of legal expertise plus these additional skills can be difficult. An added complexity is the fragmented nature of the European legal market, with different regulations and practices across various jurisdictions. This can make it hard for firms to find qualified candidates for positions in specific locations, especially for cross-border work.
A further challenge for employers might be that the demand for skilled legal professionals, coupled with the talent deficit, leads to rising salary expectations. This could put pressure on law firms and companies to offer competitive compensation packages, potentially impacting their profit margins and hiring budgets. Additionally, while legal organisations are increasingly recognising the value of diversity and inclusion in their teams, attracting and retaining people from different backgrounds remains a challenge. This can be as a result of factors such as unconscious bias, lack of representation in leadership positions, and systemic barriers within the legal profession.
Looking Ahead
As European economies continue to recover, the good news is that the demand for legal services is expected to rise. This is likely to be across a lot of the transactional areas of law including M&A, Corporate and Private Equity. For example, a potential increase in M&A activity in certain European regions could fuel the need for corporate lawyers to handle transactions and legal due diligence. An evolving legal and regulatory landscape could also have an impact, as complexities in regulations (for example, data privacy, environmental protection and financial services) across different European nations require legal expertise to navigate these and ensure compliance. This has been in particular focus post-Brexit and continues to drive growth in the legal hiring space.
In addition, economic growth in specific European countries could lead to businesses expanding and requiring additional legal support in various areas such as contract drafting, litigation, and employment law. Furthermore, the continued growth of the European tech industry, particularly in areas such as AI, fintech and cybersecurity, necessitates legal support in areas including intellectual property, data security, and competition law, increasing demand for specialist lawyers.
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Salaries
UK London Permanent Salary Per Annum £
| Role | |
|---|---|
| NQ | £75k – £110k |
| 1 yr PQE | £80k – £120k |
| 2 yrs’ PQE | £85k – £130k |
| 3 yrs’ PQE | £90k – £138k |
| 4 yrs’ PQE | £95k – £140k |
| 5 yrs’ PQE | £100k – £150k |
| 6 yrs’ PQE | £100k – £160k |
| 7 yrs’ PQE | £120k – £170k |
| 8 yrs’ PQE | £130k – £200k |
US Firms (Cravath) Permanent Salary Per Annum
| Class | Salary | Bonus | Total |
|---|---|---|---|
| 22/23 – 1st Year | $215k | $20k | $235k |
| 2021 – 2nd Year | $225k | $30k | $255k |
| 2020 – 3rd Year | $250k | $57.5k | $307k |
| 2019 – 4th Year | $295k | $75k | $370k |
| 2018 – 5th Year | $345k | $90k | $435k |
| 2017 – 6th Year | $470k | $105k | $475k |
| 2016 – 7th Year | $400k | $115k | $515k |
| 2015 – 8th Year | $415k | $115k | $530k |
| Class | Salary | Bonus | Total |
|---|---|---|---|
| 22/23 – 1st Year | £162k | £15k | £177k |
| 2021 – 2nd Year | £170k | £23k | £193k |
| 2020 – 3rd Year | £190k | £44.5k | £234k |
| 2019 – 4th Year | £222k | £58k | £280k |
| 2018 – 5th Year | £261k | £69k | £330k |
| 2017 – 6th Year | £280k | £81k | £361k |
| 2016 – 7th Year | £303k | £88k | £391k |
| 2015 – 8th Year | £315k | £88k | £403k |
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