U.S. Legal Jobs Increase After Four-Month Decline

The U.S. legal services sector added 1,600 jobs in September, to reach 1,181,400 jobs, reversing a decreasing trend that began in the spring. The increase is largely due to strong financial performance in H1 and growing demand for legal services.

The legal sector added 1,600 jobs in September, according to U.S. Labor Department data.
Total legal employment now stands at 1,181,400.
Legal sector’s strong financials in the first half of 2024 may have driven the recent job growth.

After four consecutive months of decline, the U.S. legal job market rebounded in September, adding 1,600 jobs, according to Labor Department data cited by Reuters. The legal industry’s recovery mirrors broader job growth trends across the U.S. economy, which saw a resurgence as hiring improved in other sectors like healthcare and government.

This increase brings the total number of legal sector jobs to 1,181,400, according to preliminary seasonally adjusted information from the Bureau of :Labor Statistics.
The increase comes after a steady monthly decline since April, when the sector counted 1,188,200 jobs.
This year’s all-time high for legal sector employment was in February, with 1,190,300 jobs.

The Labor Department's data includes legal workers at law firms, companies and other organizations of all sizes, including paralegals and assistants. The majority are lawyers

Broader Job Market

The rebound in legal jobs aligns with a stronger national employment picture. September saw accelerated job growth in the broader U.S. market and unemployment sipping to 4.1%.

Nonfarm payrolls increased by 254,000 jobs in September, the most since March.
Average hourly earnings rose 0.4% and wages increased 4.0% on a year-on-year basis.

Strong Financials, Demand Drive Hiring

The legal industry's strong financial performance in the first half of 2024, as week as increased demand, could be contributing to the job growth.

U.S. law firms reported an 11.4% revenue increase on average in the first half of 2024 compared to the same period last year, according to data from Wells Fargo's Legal Specialty Group.
Demand for transactional practices is also rising after three years of sluggish performance, according to Thomson Reuters Institute's Law Firm Financial Index.

Overall, there has been robust demand legal personnel from companies and large law firms over the last four months, across different geographical and practice areas, according to recruiting firm Major, Lindsey & Africa President John Cashman.