Some say that San Diego has the best weather in the continental United States. But it seems that the climate there might be less than hospitable for large law firms.
Last year, Baker & McKenzie closed its office in San Diego, finding the metropolis didn’t live up to its nickname of “America’s finest city.” And now we have news of another Biglaw firm shutting down its S.D. outpost.
It’s not on the scale of the massive Weil layoffs, but the closing could cause a significant number of lawyers and staff to lose their jobs. Here are the details….
Alas, the nickname is less funny in the wake of yesterday’s big layoff news. The firm announced it will be cutting 60 associates and 110 staffers from the payroll. Despite the generous six-month severance for associates, some probably feel like their legal careers have been mangled. The firm also plans to reduce the compensation of about 10 percent of its partners (roughly 30 out of 300, some income and some equity partners).
Let’s take a closer look at the layoffs and try to make sense of them….
The official NALP numbers are out for the class of 2012, and they stink. We’ve known for a while that they were going to stink, but the final numbers stink slightly more than we thought they were going to stink.
While we had been hoping that entry-level hiring would be slightly up for the class of 2012 over the class of 2011, it’s actually slightly down. The overall employment rate for new law school graduates fell to 84.7%. It’s the fifth consecutive year that figure has fallen. The last time the numbers were this low was in the aftermath of the 1990-1991 recession. Things stink.
You don’t have to tell the class of 2012 that their hiring stinks; they’ve been living in it for over a year now. And you don’t have to tell the class of 2013 that their prospects aren’t much better; they’re out of school now, they know. Rising 3Ls in the class of 2014 might be deluding themselves that everything is going to be sunshine and roses for their class, but if they aren’t busy securing jobs this summer, they’ll learn what bitterness and failure taste like soon enough.
In fact, the only people who seem to need to be told that hiring is REALLY, REALLY BAD are American law schools, who continue to make statements and push programs as if getting a job in this market happens in a classroom instead of on a telephone or at a networking event…
This map, courtesy of Matt Leichter at the Law School Tuition Bubble, is a representation of the lawyer glut in America through the year 2011. Things may have changed slightly since then, but this is still a fairly accurate portrayal of the problem the legal profession is facing. If your state is in the red, then your chances of finding a job as a lawyer will be just as slim as your bank account balance.
Wait a second, almost the entire country is in the red. Congratulations, graduates, because it looks like you just walked straight into the Hunger Games of job searches. May the odds be ever in your favor.
So which states are the worst for law school graduates who are desperately in search of work?
“In four minutes, it would be another hour; a half hour after that was the ten-minute break. Lane Dean imagined himself running around on the break, waving his arms and shouting gibberish and holding ten cigarettes at once in his mouth, like a panpipe. Year after year, a face the same color as your desk. Lord Jesus. Coffee wasn’t allowed because of spills on the files, but on the break he’d have a big cup of coffee in each hand while he pictured himself running around the outside grounds, shouting. He knew what he’d really do on the break was sit facing the wall clock in the lounge and, despite prayers and effort, count the seconds tick off until he had to come back and do this again. And again and again and again.”
Yesterday, the New York Times ran a longish piece on just what in the hell was happening at the IRS office in Cincinnati. A Kafkaesque tale of bureaucratic intrigue, the treatment does little to tell us why in the hell we care just what in the hell was happening at the IRS office in Cincinnati. I’ll leave that determination to the qualified pundits and their punditry.
But what the Times article does do is shine a light on what it means to be a lawyer. What it means to others and what it means to us. Completely by accident, the mess at the IRS tells us how important lawyers are. And how impotent we are. This makes little sense even as I type it. But bear with me. Please. It is not often that meaning comes so nicely gift-wrapped.
I suppose that’s a rhetorical question. When you live in a nation that’s been reduced to an army of mindless reality-TV-watching drones, it’s not exactly surprising that the average citizen is more inclined to trust a television judge than a jurist who’s been appointed to the highest court in the land.
We care more about the matching camouflage wedding couture Honey Boo Boo’s parents, Mama June and Sugar Bear, wore when they tied the knot this past weekend than the next round of controversial decisions that will be soon be handed down by the Supreme Court. We care more about the Kimye baby bump than the very existence of the Supreme Court, much less the names of the justices sitting on its esteemed bench.
No one who’s been paying any attention is taken aback by the fact that Americans care more about the people they see on television on a daily basis than names they once read in a textbook. That’s why the results of the latest Reader’s Digest Trust Poll as to this country’s judges are expected, and sad, and not at all surprising….
New Rule: The next law school person who wants to bitch about the unfairness of the “employed nine months after graduation” metric must offer to make loan payments for all students who don’t have a job at nine months until they find one. If law schools are going to knock up their recent graduates they should at least have to throw in some child support.
Oh, wait, NO law school dean wants to actually be on the hook for student loans from when they come due six months after graduation until… whenever this unnamed point in the future comes when students can expect to have jobs. Given that, I don’t really want to hear about how your school is so freaking “unfairly” treated because CONSUMERS of legal education need to know if they will be employed within shouting distance of when they will start having to pay back their loans.
Fine, you want a compromise? It looks like we’re moving to ten months anyway…
I am supposed to be paying something on the order of $2,500 a month in student loan repayments. I currently make a shade over $55,000 a year which, after taxes, comes out to a tick under $3,200 a month. Please don’t mistake me for a braggart, dear reader, as I am a man much like yourself. I get up every morning and slip my cheap suit on one pant leg at a time. Just like you! It’s just that, after my threadbare suit is hanging from my gaunt frame, I have dozens of dollars to my name. Dozens.
If you are reading this website, you are well-acquainted with the state of student debt in this country. Above The Law, once a bastion for bottles, models, bonuses, and benefits, covers the hangover now too. The hangover is a useful start for any consideration of debt in this country, as it turns out. Shot through with the morality that only the descendants of Puritans can muster, debt in this country is treated not unlike a sexually transmitted disease or pleated pants: it’s moral turpitude that led you here.
Remember kids, banks will never ever ever forget your student loans. They may forgive them, though. As if they’re handing out papal dispensations from on high, banks are passing moral judgment even when your duties as a debtor may be discharged.
This is the moral universe we currently reside in. And it’s one that has seriously warped consequences.
The National Association for Law Placement (NALP) has new numbers on the legal job market for recent graduates, and like it has been every year since the start of the Great Recession, those numbers are a horror show. A freaking horror show. They might as well put three recent graduates in a room with one job offer in it, handcuff the graduates to a pole, and give the offer to the one that eats through his arm first.
The other two would then get to leave the room unemployed, with some bite wounds, instead of unemployed with over $100,000 in debt, which is how people are actually leaving law school.
Do you want some good news? The lateral hiring market is hot. NALP executive director Jim Leipold called it a “feeding frenzy” for experienced associates. So if you got a job and held onto it through the 2009 layoffs, pick up your phone. It’s probably a recruiter calling. Congratulations on all your success.
If instead you were not lucky enough to be born five years earlier and have just graduated or are about to graduate, I don’t have anything for you — other than this here hacksaw. Chop, chop….
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past six years. You can reach them by email: [email protected].
Since late last year, things have been booming in Hong Kong / China in cap markets, especially Hong Kong IPOs. M&A deal flow has recently been getting a bit stronger as well. Although one can’t predict such things with any certainty, all signs are pointing to a banner entire 2014 for the top end US corporate and cap markets practices in Hong Kong / China. This is not really new news, as its been the feeling most in the market have had for a few months now and things continue to look good.
The head of our Asia practice, Evan Jowers, has been in Hong Kong for about 10 days a month (with trips every other month to both Shanghai and Bejing) for the past 7 months (Robert Kinney and Evan Jowers will be in Hong Kong again March 15 to 23), and spending most of his time there meeting with senior US hiring partners at just about all the major US and UK firms there, as well as prospective candidates at all associate levels and partner levels, and when in the US, Evan works Asia hours and is regularly on the phone with such persons, as our the other members of our Asia team. Our Yuliya Vinokurova is in Hong Kong every other month and Robert is there about 5 times a year as well. While we have a solid Asia team of recruiters, Evan Jowers will spend at least some time with all of our candidates for Asia position. We have had long standing relationships, and good friendships in some cases, with hiring partners and other senior US partners in Asia for 8 years now.
Are you challenged by the costs and logistics of maintaining your office, distracting you from the practice of law?
Many small firms are successfully moving part—or even all—of their practice to a virtual setting. This even includes multi-jurisdictional practice spanning several states and practice areas, although solo and small partnerships are still the largest adopters of virtual law.
Can you do the same? The new article Mobile in Practice, Virtual by Design from author Jared Correia, Esq., explores how mobile technology bring real-life benefits to a small law firm. Read this new article—the next in Thomson Reuters’ Independent Thinking series for small firms—to explore how a mobile practice:
Everyone is talking about the importance of Social Media in Corporate America. But it is relatively safe to say that most law firms and lawyers are slightly behind the social curve. Most lawyers, at minimum, use LinkedIn, for networking. Some even use Twitter for pushing out short, pithy content, while many have Blogs, where they write their little hearts out. The adage “it is better to give than to receive” is not always true though in the world of Social. In the Social World – it is best to listen, give back and engage.
Social Media is a communications tool that can deeply educate you about the needs and wants of your clients and prospects when used in conjunction social media monitoring and sharing tools.
Take this quick quiz and see if you know how to use Social to help you engage more with your clients or to better service the ones you have.