Job Searches, Summer Associates

More Bad News: The Monday Edition

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Unfortunately, this Monday brings more statistics and indications that the job market for lawyers is in very bad shape.

The National Law Journal is reporting that while law students are expected to graduate with an average of $73,000 of debt, job prospects are looking especially weak:

[W]hile most would-be lawyers already have accepted that only a small fraction will start their careers with a big-firm salary of $160,000, the past few weeks of economic chaos have caused many to wonder if any kind of attorney work is in their near future. …

[T]here is genuine cause for concern. The number of legal jobs nationwide is steadily declining, according to employment figures released this month by the U.S. Department of Labor. Jobs in the law sector shrank by 2,000 in September — the fifth consecutive month of losses. The legal work force of 1,165,100 was down by 1.15% from a year ago, when the industry employed 1,178,600 people.

NALP is reporting the anecdotal evidence that we’ve been seeing: law firms are scaling back on their summer associate programs.

Not surprisingly, law students are worried:

One of the biggest challenges for career services professionals is dealing with the rumor mill among law students, who are a “worrisome lot” by nature, said Tom Ksobiech, assistant dean for career services at the University of Alabama School of Law.

“Everyone has heard something from ‘a friend,’ ” he said. “According to the ‘friend,’ there are no jobs anywhere.”

After the jump, practicing attorneys are also feeling the pinch.

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We also know that most people that have a job are worried about keeping it. The Washington Post reports on Howrey’s response to the economic downturn:

It is assigning more work to lower-paid staff attorneys and negotiating fixed fees for certain clients rather than billing by the hour. To keep up profit, the firm is hiring fewer associates and has acquired a Madrid firm to expand its antitrust practice into the booming Spanish market.

Demand for legal services is decreasing as clients tamp down their spending on outside counsel:

Officials of corporate legal departments say they have reduced spending on outside law firms. Legal spending by corporations increased 3 percent this year, compared with 6 to 7 percent last year.

The Post reports that the pain is even creeping into the partnership ranks:

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Law firms’ profits per equity partner dropped by 9.1 percent in the first half of 2008, compared with a 9.3 percent increase in the past seven years.

We wish we had something better to report. But lawyers at every level are not immune to the depression of recession. The best advice continues to be: work hard, keep your head down, and try to ride it out.

A grim verdict awaits law grads [National Law Journal]

Law Firms Tightening Belts — By Request [Washington Post]

Earlier: Accept Your Offers: Stop Screwin’ Around You Kids Screw Around Too Much

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