Law: Hiring Is Again In Vogue

The Number Of Attorneys At 250 Largest Law Firms Grew 4.4% In '05

(U.S. News & World Report)  Just a few years ago, beleaguered law students watched as hiring rates at law firms hit their lowest point since the early 1990s and some marquee practices cut payrolls. Those dismal days are now over. With the economy on solid ground, demand for legal advice — and attorneys to do the work — has ratcheted up. The number of attorneys at the nation's 250 largest law firms grew by 4.4 percent last year, up from 1.5 percent in 2004, according to an annual survey by the National Law Journal. That's the strongest showing since 2001, when the increase in hiring hovered around 8 percent.

The pent-up demand was felt at career events on law school campuses last fall. "I'm happy to say that things are great for the first time in quite some time," says Mike Schiumo, assistant dean for career planning at Fordham Law School in New York City. Fordham, which sends a high percentage of its students to work for New York firms, was hit particularly hard when Wall Street slumped in 2001. But at the school's early interview week, held each August, recruiters turned out in their largest numbers in the past five years. "In the last nine months of 2005, things got much stronger," says Schiumo. Some firms that missed their staffing targets in the fall are planning to come back this spring to fill open slots.

Opportunities in a range of law specialties have also expanded as the economy has grown. "The trend now seems to be balanced," says Helen Long, director of the career development office at Boston University School of Law. "Fewer firms are looking for people who are primarily interested in litigation. Three years ago, you wanted to discourage students from expressing too much of an interest in transactional work." Students may now take their pick of growing specialties such as real estate, litigation, and intellectual property. Add to that list transactional work, which is experiencing a comeback as deal making continues to rise.

Law firms are not just busy with work in the United States. More legal business abroad is opening up slots as well. The number of attorneys working in the foreign offices of law firms jumped last year by 23 percent, according to the National Law Journal, making U.S.-trained lawyers with foreign-language skills particularly sought-after applicants. The standard French or German will still come in handy, but aspiring lawyers may do even better to study Mandarin or Japanese. "A lot of European lawyers speak English fluently, but the Asian languages are a specialty much in demand," says Juli Wilson Marshall, global recruiting committee chair at Latham & Watkins.

Summer hires. This increased demand also translates into more opportunities for law students to snag that all-important summer associate position at the end of their second year. "We will have a more expanded summer program throughout the United States than we have had in the past," says David Hackett, North American managing partner for Baker & McKenzie. His firm is boosting its summer associate class by more than 20 percent from 2005, in addition to increasing hires of associates with a few years of experience at a law firm. The same is true for Latham & Watkins. The firm is hiring its largest class of summer associates ever this year, 268 students, up from 217 last year and 164 in 2004.

Even students with average grades can breathe easier. With law firms expanding their summer associate programs, those not at the top of their class or working on the law review have become desirable job applicants. "Last year, a student in the middle of the class would have three or four callback offers [to interview]," says Susan Guindi, assistant dean for career services at the University of Michigan Law School. "This year, students were getting 10, 12, 15 callbacks."

And corporate firms are not the only ones on the rebound. Local and state governments are also recruiting as budgets loosen up and hiring freezes come to an end. At the University of Southern California Law School, students are finding renewed interest from the public sector, particularly from public defenders' offices in the state, which are starting to hire now that California's budget crisis has passed. More openings may become available as some public-sector attorneys jump to more lucrative, private-sector gigs.

Public-interest opportunities outside government are also seeing moderate growth. In the wake of Hurricane Katrina, for instance, counselors at law school career centers say they expect demand to grow for public-interest attorneys focused on everything from environmental issues to eminent-domain and housing concerns. Those interested in this type of work might also want to brush up on their foreign-language skills; lawyers with specialized training are also needed to help with rebuilding in war zones like Iraq and Afghanistan.

Still, the resurgence of demand for lawyers has yet to translate into huge salary gains. Incoming first-year associates at top law firms can expect to receive from $80,000 to $125,000, depending on location and the particular firm. While some corporate firms have made moves in recent months to hike this base as high as $140,000, most have held salaries steady. Applicants interested in the public sector will also not see large gains and can expect much lower initial salaries, around $40,000.

And despite the demand, there's still much more to getting hired than turning in a resume. Public-sector applicants should make sure to show some prior interest in the field, such as volunteer work or summer experience. At the San Francisco district attorney's office, which hosts about 200 to 300 law students and clerks each year, competition for open slots is extremely tight. The office received over 400 applications for 15 training spots and 30 intern positions for a summer rotation. Paul Henderson, who serves on the hiring committee, says that applicants who attend schools with a strong commitment to public-interest and government work have a better shot at getting noticed, even after a stint in the private sector. "We tend not to be impressed with the fifth- or sixth-year associate with no public-service background," Henderson says.

Top-notch grades are the key to getting a position with a corporate firm. Most recruiters say, however, that beyond the numbers, a candidate must demonstrate that he or she will be a good match with the firm. "Is it someone that we have confidence in based on the culture of the firm, someone who is going to be comfortable pitching clients and is comfortable in court?" says Anthony Barron, a San Francisco hiring partner for Thelen Reid & Priest. "It's the long-term investment that makes it all worthwhile.