Key Points:
- Federal agencies recorded one of the steepest annual declines in government lawyers in decades in 2025.
- Large law firms increased hiring of former government attorneys, reshaping the lateral market.
- Departures were concentrated at the Department of Justice, with implications for enforcement capacity.
The US federal government saw a significant contraction in its legal workforce in 2025 as thousands of lawyers left public service, accelerating a shift in the broader legal labor market. Data from the US Office of Personnel Management show that 8,599 attorneys exited federal service between President Donald Trump’s inauguration and November, resulting in a net loss of 6,524 lawyers after new hires, according to Reuters’ Billable Hours report.
The Department of Justice accounted for roughly one third of the departures, with losses across multiple divisions, including Civil Rights and Federal Programs. Recruiters said many career government lawyers began exploring private sector roles even before the administration change, with exits accelerating as workforce reductions took effect. In some practice areas, the influx of candidates exceeded demand, particularly for attorneys without specialized experience.
Large law firms moved to absorb some of the talent. The 200 highest grossing US firms hired 1,129 former government lawyers in 2025, representing 8.54 percent of total attorney hires and roughly double recent norms. Industry data also show government lawyers made up about 7 percent of the lateral market, compared with a historical average closer to 4 to 5 percent.
Not all transitions were smooth. Lawyers with backgrounds in regulatory enforcement, compliance, and complex litigation were more competitive, while junior attorneys faced tighter conditions. Inside government, the sustained loss of staff has strained agencies’ ability to manage litigation and enforcement as institutional knowledge declines.
For law firms and in house legal teams, the shift offers access to experienced talent but underscores the need for disciplined, role specific hiring as competition intensifies.
