According to a report released on Tuesday by the NALP Foundation for Law Career Research and Education, there has been a decline in the number of associates leaving their firms and the hiring rate after historic high levels were recorded in 2021. Despite the decline, both numbers are still above average. The report analyzed data from 128 law firms in the U.S. and Canada and found that associates of color were leaving at a higher rate than the cumulative average. Additionally, for the first time, geographic relocation was cited as a significant factor in associates' decisions to leave firms. In 2022, attrition rates decreased to an average of 20% from 26% in 2021, with 4,068 associate departures reported by participating firms, slightly lower than 2021's total of 4,503. Male and female associates had similar rates of leaving their firms in 2022, with 20% and 19%, respectively, while associates of color had a slightly higher reported attrition rate of 26%, lower than 2021's rate of 34%.
According to a statement by NALP Foundation President and CEO Fiona Trevelyan Hornblower, the high levels of associate hiring and attrition in the first half of 2022 suggest ongoing associate mobility, but with differences based on location and practice area, as well as persistent disparities for associates of color that should be a concern for the profession. The report shows that 72% of departures occurred within the first five years of joining a firm. The main reasons cited for leaving were the pursuit of specific practice interests and career changes, with 17% of attorneys citing each category. Unfavorable work quality standards and a desire for better compensation were cited by 10% and 9% of attorneys, respectively, while 9% cited relocation as a reason for leaving their firms. Participating firms reported fewer associate hires in 2022, with 6,786 new additions compared to 7,278 the year prior, but still significantly higher than the 2020 total of 4,956. The report also noted that 3,737 lateral hires were reported, slightly higher than the 3,049 entry-level hires. Gender hiring was almost even, with 51% male and 49% female hires, while people of color comprised 35% of employment in 2022, up from 32% in 2021.
