Posts tagged: Legal Industry

Economic Recovery Eludes Legal Industry

If job gains and losses are any indication of economic recovery, it is safe to say that the general economy continues to inch out of the recession pit, but the legal industry is still in the hole.  The most recent report by the US Department of Labor indicates that the legal industry lost 1,200 jobs in April, even as the economy as a whole saw the highest monthly job creation in more than two years.

According to DOL, the private sector as a whole has posted a job gain for 50 consecutive months.  That’s clear evidence that the recovery is moving at a snail’s pace.  Still, it keeps improving, and that’s what counts.  It has always been a peculiarity of the legal industry in that it lags behind the general economy;  slower to experience dips, and slower to recover.  So it’s not surprising at all.

Optimists like myself take comfort in knowing that eventually our sector will catch up.  Just keep in mind that the economy in the legal industry will never return to where it was.  There will be some expansion in some practice areas.  But as a whole we’re going to be faced with flat or diminished client demand and strong competition from firms of all sizes.

If you’ve been hanging on by a thread waiting for the recovery to bail you out –trying to avoid making changes which might be painful — it’s time to make the hard decisions.

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