Decline in legal job vacancies in London, report finds

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Hiring activity in the legal industry fell in 2023, with figures returning to levels similar to those seen pre-pandemic. A report, shared exclusively with City A.M. by Search and VacancySoft, found that there were consistently fewer vacancies both quarterly and monthly in 2023 when compared to 2022. For example, quarter two of 2023 saw 34% fewer vacancies than the same quarter in 2022,  which was the most significant drop.

The report showed that mid-tier firms had the most vacancies in 2023, surpassing magic circle firms. DAC Beachcroft topped the list of most active firms, with 175 vacancies in 2023. However, this was still 16.3% fewer vacancies than the firm had in 2022.

Hiring patterns varied between practice areas too. For example, vacancies in personal injury positions increased by 15%, growing the sector’s market share to 10% from 6.4%. Despite high demand, roles in real estate fell by 37%, bringing the sector’s market value down to 19% from 22%.

The report also highlighted there are 29.4% fewer vacancies for lawyers looking to work in-house. For example, the banking sector saw a 45% drop in in-house roles, with vacancies falling by 49% at Barclays and 46% at HSBC. The report stated that within the banks, “the cause is clear, in that the slowdown in corporate finance has meant that the demand for lawyers to facilitate contracts and deal-making has fallen significantly”. The technology industry also experienced a 54% decrease in vacancies. However, TikTok was a notable outlier within this sector, as its vacancies grew by 100%.

James Franklin, director at Search, said: “While 2023 saw the impact of quantitative tightening on the sector, the signs are positive looking forward, with that, as interest rates fall and corporate finance gears up, we anticipate a busy year for both the law firms and the banks.”