Thursday, Feb 12, 2009 was called ''Black Thursday'' because on that day Law Firms across the country laid off 800 people in direct result to the sagging economy. It is very unfortunate that the newer hires are laid off first. It takes 2 to 3 years before a new hire becomes profitable to a Law Firm.
David Lat, the owner of a large legal news website said, ''I think there used to be this sense of ‘you don't kill the young'. Don't fire the first-years because they haven't proven themselves. That's fallen to the wayside.'' This business man agreed that it is likely the young lawyers are first to be terminated. During ''Black Thursday'' his website got over 500,000 viewers regarding the events of the day.
The Illinois Lawyers' Assistance Program is an organization which offers psychological help to lawyers who have problems with depression and drug abuse. The Illinois program reported a double in new patients this year as compared with 2008. They are seeing new law graduates that have not been successful in getting jobs and new hires that have been laid off. The legal firm, whose sole owner feels the burden of the economy, has taken part-time jobs to survive. Some legal sole proprietors have been pushed to the edge financially with the lull in their practices.
Younger lawyers and graduates in the job market look at the chance to adapt as an opportunity. If skills from the legal profession can transfer into other markets there is a better chance for a career. There are areas of the legal world where work is still steady. Non-profit organizations are still hiring. Bankruptcy law, consumer debt, loss mitigation and forensic law are fields that have been consistent. Chances are favorable these areas will continue providing work until the economy starts to turn around.
Amy McCormack, co-president of McCormack Schreiber Legal Search Inc., has been a legal recruiter for 15 years and she predicts ''Litigators and bankruptcy lawyers will soon see the light at the end of the tunnel.'' She believes corporate and real estate law will take a while to recover.
Programs legislated by Obama (to turn around the failing banking industry) are looking to be economically effective for some areas of law. Banks, consumer finance companies, other finance and insurance organizations which need attorneys to oversee government audits and regulatory requirements can take part in the ''recovery plan'' business.
In review, the economic downturn is realistic for large and small firms alike. ''Black Friday'' made the sagging economy clear for the nation of lawyers to witness. Not all legal professions are suffering. The more flexible lawyers have a greater chance to survive if they can adapt to taking bankruptcy cases, doing litigation work, or acting as a debt counselor for people facing difficult situations personally and in business.
This is business and it ebbs and flows. As surely as it goes down, it will one day come up. Until then, lawyers are learning to adapt.
References:
Chicago Lawyer, © 2009. ''Being a Lawyer in This Economy'', Law Bulletin Publishing Company.
|
