The AM Law Daily recently reported that April saw an increase of 1500 legal jobs. This combined with the New York Times article on the American Lawyer report that there is significant growth in 2010 over 2009 seemingly puts the attorney market back on track.
Some other statistics from the American Lawyer report include
- - 4% increase in law firm revenues
- - profits per partner went up by 8.4%.
- - Baker McKenzie came out top with $2.1 billion in revenues
- - Wachtell, Lipton, Rosen & Katz declared $4.3 million in partner profits!
So with all the challenges in the economy the big law firms are seemingly steering their way into profitability and growth.
Meanwhile, Hildebrandt released a report on May 6th 2011 that Big Law continued to feel the effects of the economic crisis in 2010, with;
- - Almost 2,900 fewer lawyers working (in 2010) for the largest 250 firms than the year before.
- - And those losses are on top of the 6,600 lawyer decline in 2009.
- Also, the Economist reports “Clients became keener to query their bills—and to demand alternatives to the convention of charging by the hour, such as flat, capped or contingent fees.”
So how does one grow revenue, increase partner profits? Cutting 9,500 attorney jobs may be one way. All in all, Big Law has reacted swiftly by cutting jobs, driving overall hourly rates down and creating alternative billing arrangements for their clients. This has obviously started to bear fruit.
