Law Job Market Holds Steady: What to Know for Career Success in 2021

Summary

The job market is holding steady amid the economic uncertainty caused by the COVID-19 pandemic. Although there are fewer job postings available, the total number of job postings in the U.S. has remained fairly consistent since the pandemic began.


The number of job postings decreased significantly in the early months of the pandemic, with the hospitality and retail industries being particularly hard hit. However, job searches have been steadily increasing in the months since, with the number of searches returning to pre-pandemic levels.

There are a few bright spots in the job market, with certain industries experiencing an increase in job postings. These include healthcare, technology, finance and legal services. These industries are largely unaffected or even benefiting from the pandemic.

The situation is slightly more positive for job seekers, with job postings increasing in the latter half of 2020. However, the job market remains highly competitive, and employers are often able to choose from a larger pool of applicants than before.

Despite the overall decrease in job postings, there are still opportunities for job seekers. It is increasingly important for applicants to pay attention to the keywords and phrases used to describe job postings, as these can help their applications stand out from the competition.

Finally, the outlook for 2021 remains uncertain, with job postings expected to remain fairly consistent. Nonetheless, the job market is still relatively stable and there are still plenty of opportunities to be had. Those looking for work should continue to search and apply for jobs, while making sure to optimize their application materials to increase their chances of being hired.
 

Job Market Remains Steady

Amidst a growing economic downturn, the job market has surprisingly held steady. After the September 11th attacks, many economists predicted serious economic woes and a decrease in available job opportunities. While the stock market certainly has taken a dramatic tumble and tech companies are feeling the pain, the job market remains surprisingly healthy.

As of the first quarter of 2002, unemployment had increased, but the rate was lower than the economists' predicted rates. This is due to real estate, construction, health care and government, all of which have been largely unaffected by the downturn. Additional growth in these areas, particularly in health care and government, has provided many jobs and opportunities for employment.

Additionally, as of Fall 2002, many companies in other affected sectors such as technology have begun to slowly recover and call back workers. While many workers who have been laid off may need to re-educate themselves or seek new training, the chances of them returning to their former positions may still be very good.

The short-term economic picture may appear bleak, but economists continue to offer hope, saying that there is light at the end of the tunnel. The government has implemented several economic stimulus packages to help bolster the job market. In addition, experts say that the job market may actually experience an upturn in 2003.
 

Economic Stimulus and Job Market Stability From 2002-2003

In the wake of the September 11th attacks, economists predicted a sharp economic downturn and a decrease in available jobs. However, by Fall 2002, the job market had held steady, driven largely by real estate, construction, health care, government, and other growth industries. In response to this, the U.S. government implemented several economic stimulus packages in the hopes of bolstering the job market. By 2003, employment rates had started to increase, indicating a positive outlook for the job market.

Despite layoffs and a weak economy, almost as many law school graduates from last year's class of 2002 found jobs as the class of 2001.

And despite recent drops, the employment market for new law school graduates over the past five years has remained relatively strong, standing at or above an 89 percent employment rate nationwide.

Those figures come from a new study from the National Association for Law Placement (NALP), "Jobs & J.D.s: Employment and Salaries of New Law School Graduates." The 29th annual report shows the class of 2002 saw the second decrease in employment rates since the crash of the early 1990s when employment rates were in the low-80 percent range. But the drop last year was only slight - 89 percent of graduates for whom employment status was known were employed by mid-February 2003, compared to 90 percent for the class of 2001 and 91.5 percent for the class of 2000.

That's good news for people in law school now, said Jerry Nash, NALP executive director.

"What's interesting to note is that this year [the employment rate] lines up with roughly where we were in 1998 and we had seen a steady increase in the employment rate during the boom time of the mid- to late-1990s," Nash said. Kevin Rosen, national chair of the hiring committee at the firm Gibson, Dunn & Crutcher, said some firms, like his, have learned since the early '90s, to take a steady and stable approach to hiring, to avoid shortages and overflows of associates. At those firms, hiring will likely remain stable for the next few years.

And even at firms that do change their hiring rates to match the peaks and valleys of the economy, Rosen said he thinks the outlook is bright for current law students.

"The law students we have just seen in a summer program or who we are interviewing this fall for next year's summer program will probably see themselves falling in within the peak or the rise toward the peak," he said. "Most law firms expect that by the time these people arrive, economic conditions will be better, and the reduced hiring they did in the valley will need to be compensated for. Either way, law students will win over the next couple of years."

Piper, Rudnick is one firm that did reduce its hiring recently. Sally McDonald, co-national hiring partner, said her firm, along with many others, has taken on smaller summer associate classes recently. But that approach will pay off for the associates who do get their feet in the door for a summer.

"Law firms didn't want to be in the position of having an summer associate who did excellent work and who ends up without an offer of employment because they over-hired for the summer," she said. "There will still be a smaller program [for the next few years], so the summer associates we do take on will have a very good chance of an offer of permanent employment at the end of the summer."

Nash points out that since the NALP data includes all jobs landed up to mid-February of the calendar year following graduation, there is no guarantee that those 89 percent who found jobs found them very quickly. And anecdotally, he believes some students are waiting longer for job offers than before. But the news is good there too. Nash said in the class of 2002, 69.5 percent found jobs before graduation.

"That number is five percent higher than it was in 1998, in the middle of a boom time," he said. "The jobs are still there, the offers are still coming. There is some reason for having hope and not panicking, but for being patient, being flexible and being creative."

This story appeared in the October, 2003 edition of The National Jurist, www.nationaljurist.com.