The Impact of the "Credit Crunch" on Legal Recruitment

"The Lawyer" today reported that the credit crunchnumber of Commercial Property Legal Secretaries
does not seem to have had an effect on law firm'sregistering since the beginning of the year. Last year,
trainee retention rates. In fact, the retention ratesexperienced Legal Secretaries were in high demand
are reported to have had a 7% increase, with morewith an abundance of job opportunities being
than three-quarters of law firms keeping on moreadvertised - especially in the commercial property
trainee solicitors than last year. At first glance thesesector, so it was relatively easy to place an
figures may seem like a surprise, but could thisexperienced Legal Secretary that came on to the
actually be a strategic move by law firms tobooks. However, in the current situation, with
safeguard their future, and what implications doescommercial property work diminishing, it is the
this present for legal recruitment?support staff such as Legal Secretaries and Paralegals
With many trainee Solicitors due to qualify thiswho are first to take the brunt of redundancies.
September, this announcement is sure to beMany law firms are able to redistribute Legal
welcomed with open arms, but perhaps not to legalSecretaries into different departments, but from a
recruitment agencies that thrive on a good stafflegal recruitment perspective, it is increasingly difficult
turnover within law firms and In-House legal teams. Into find job opportunities for superfluous support
simple terms, Newly Qualified Solicitors presentstaff. Recruitment is a job-driven marketplace after
cheaper labour to law firms as; firstly, Newly Qualifiedall!
Solicitors command a lower salary than moreFortunately, the credit crunch hasn't been all bad so
experienced solicitors; and secondly, filling vacanciesfar - despite having a huge impact on the property
internally by retaining Newly Qualified Solicitors issector, other practice areas have been unaffected.
much more cost-effective than paying humanPrivate Client legal vacancies, Personal Injury law
resources costs, advertising fees and legaljobs, Clinical Negligence job opportunities, Criminal
recruitment agency's fees. Also, if the economy werepositions and Commercial Litigation vacancies are still
to take a further turn for the worse, it would bebeing advertised as these areas are still going strong.
easier and cheaper for legal practices to makeAnd perhaps not so unsurprisingly, practice areas
redundancies at the Newly Qualified level.such as Employment law, Civil Litigation / Insolvency
The legal recruitment agency industry has also seenlaw have actually picked up with a healthy number of
Legal Executives become increasingly sought after.jobs available. Sadly, the credit crunch has also seen
Nowadays it is not unusual for a law firms toFamily law pick up as financial pressures are taking
advertise a job as a "Solicitor/Legal Executive"their toll on family life as has Insolvency law with
vacancy. Again, this indicates another ripple effect ofmany businesses struggling to stay afloat.
the credit crunch as just like Newly QualifiedThere remains a lot of uncertainty about how much
Solicitors, Legal Executives also present cheapermore the credit crisis will affect the legal recruitment
labour than experienced Solicitors. However, unlikeindustry in the coming months. At present there are
Newly Qualified Solicitors, Legal Executives gain theirstill jobs out there, but the pinch is beginning to be
title by clocking up five years experience of workingfelt. My prediction is that if the current situation
within a Law Firm; this time will generally include twoworsens, it will be the higher paid higher skilled legal
years of carrying their own caseload, and onstaff that will be the most affected. Legal
average, four years studying. This means that quiterecruitment will see a higher volume of support staff,
often, Legal Executives will have more experienceNewly Qualified and Legal Executives vacancies, but a
than Solicitors, so surely employing a Legal Executivesmaller volume of experienced Solicitor positions. But
rather than a Solicitor presents a no-brainer to lawat the end of the day, it is only time that will be able
firms in a time of financial crisis.to tell.
Legal recruitment agencies have also seen a record