Why there are likely to be jobs in Smaller markets during this recession

With the economy showing signs of a recession, and the current slowdown of many industries directly caused by COVID-19, a declared pandemic, the legal industry is likely to take a major hit. And, like most industries, the first legal staff members cut are the newest legal support staff and the most recently hired and least experienced associate attorneys. Law firms don’t have the time or resources to devote to newer, less experienced legal talent who aren’t, in the eyes of the law firm, yet reaching their full potential in billable hours or positive impact. So, those with the least legal experience are often the first to be let go.

Experienced Attorneys and Legal Staff Aren’t Always Safe During a Recession

 
If you’re an experienced attorney, paralegal, or other legal staff, you’re not necessarily safe from the chopping block. Unfortunately, your legal job could also be on the line… and the size of the law firm has nothing to do with it. Many factors will determine whether a law firm can financially afford to keep all of its lawyers, paralegals, and legal support staff, including those who have extensive experience in their legal practice areas.
 
One of the largest contributing factors has to do with the law firm’s financial health. How many outstanding loans has the law firm taken out? Does the law firm have enough incoming and ongoing legal work to make payroll, cover overhead expenses (aside from payroll since we specifically mentioned it), and pay all of its lenders? It won’t be the lenders, the shareholders, or the partners who will do without their share. The law firm will save money by slashing whatever jobs are necessary, including those of experienced attorneys, paralegals, and legal support staff. And if your law firm does it, other law firms are also doing it. That makes it very difficult to find, let alone get hired for, a legal job opening even if you’re considered top legal talent and you’re working with a legal recruiter.
 
If the Law Firms Cut Jobs, Won’t Everyone Cut Jobs? 
 
Many attorneys and legal staff once thought the legal industry was recession-proof. And, sure, when a recession happens, certain legal practice areas may flourish more than others. But that doesn’t mean that your legal skills or legal experience make you a good match. If you’re not a lawyer with at least seven years of experience and bringing your profitable book of business, few law firms outside of your usual legal practice area may be willing to even look at you.
 
Yet, that doesn’t mean that every industry will cut jobs or eliminate their legal departments. That brings us to the pinnacle of this article.
 
Where You Should Look for Legal Work During a Recession 
 
Recessions are scary. If you lose your law firm job, how will you pay your mortgage or rent? How will you pay your monthly expenses? How will you pay your student loans? If you can remember when the housing bubble burst, the bankruptcy industry had an uptick in business, but the consumer population suffered from job loss and losing their homes. The government bailed out banks and continued to chase down consumers who couldn’t make their credit card payment while tacking on late fees and exorbitant interest rates. It was a very scary time for most people.
 
If you look for legal work during a recession, consider:
 

• Government jobs
  • Entry-level associate attorney, experienced attorney (including litigation), paralegal, and legal support staff jobs exist at the city, county, state, and federal levels. While layoffs can happen to government workers, they are less likely to happen during a recession. If they happen, it often includes a severance package.
• In-house attorney, general counsel, and in-house legal departments
  • Corporate law is still alive and well. Corporations continue to need in-house attorneys, general counsels, paralegals, and legal support staff. It has practically no billable hours when compared with traditional attorney jobs at law firms, you only worry about the affairs of one client, and the work-life balance is better compared to working in a law firm. Recession may still affect corporations, but because corporations still need a legal department to handle lease agreements, contracts, negotiations, mergers, insurance matters, and litigation, there will always be positions available. Tech companies that embrace remote work may be great places to consider, provided that you can practice law in their jurisdiction. For paralegals and legal assistants, virtual legal support jobs are out there. The key for legal support staff will be to ensure that, even if you are independent or freelance, that you have an attorney to supervise you to ensure nobody can accuse you of the unauthorized practice of law.
• Consider getting up to speed in other legal practice areas
  • Bankruptcy, healthcare law, data privacy, intellectual property, and other areas affecting technology will continue to grow. With the rapid changes in healthcare (including virtual visits and low-cost alternatives to have prescriptions shipped to your doorstep), GDPR and several states in the US adopting similar privacy laws limiting or banning biometrics, and the continued growth of technology, protecting your livelihood could be as simple as expanding your legal skills. Focus on taking continuing legal education courses on subjects that interest you in areas that will continue to grow. Meet other lawyers, paralegals, and legal support staff already working in those areas. Networking is often a key component of landing a job at a law firm.
• Insurance companies
  • Between the recession and the fallout of COVID-19, insurance companies will continue to see an influx of claims from policyholders and likely face more appeals and demand letters than ever. Insurance companies often have their legal departments and also contract out insurance defense services to local law firms. Determine which insurance companies are in your area and learn about their legal job openings. As an experienced legal candidate, you should be able to get through their hiring process.
• FDA law
  • With COVID-19, the world has experienced something unlike anything in recent history… despite having dealt with the bird flu, the swine flu, Ebola, and Zika. We’ve all watched the rush to develop a vaccine and treatments for COVID-19. It is likely that besides this spur of new activity, other newly invented drugs and treatments will also be born from adversity. If you’ve ever been interested in health and medicine, this may be a prime time to do the work to gain the required legal skills to make a switch to a growing area of law.

 
When in Doubt? Look for Legal Work in Other Areas 
 
Some areas will still have plenty of legal work even during a recession. So, when in doubt, look for work outside of your area. Keep in mind that with the growth of remote work that as long as you’re still looking in an area where you’re admitted to practice that you may not have to uproot yourself or your family and move.
 
Work with a legal recruiter to help determine your options. They may also help you find some legal work opportunities that you were unaware of and help you prepare to start the hiring process!