According to legal data company Firm Prospects LLC, while large law firms have been conducting layoffs and reducing hiring, small and midsize firms are seizing the opportunity to hire more big firm lawyers. The data shows that the portion of associates leaving large law firms for those outside BigLaw has shifted over the last two years, from 31% in 2021 to 34% in 2022 and now 42% in the first quarter of 2023. This movement is likely due to a glut of hiring by large firms in 2021 and a drop in work volume, leading to layoffs and a reduction in new hires.
During the first three months of 2023, 29.1% of associates who left the 100 largest law firms in the U.S. by revenue for another firm landed at midsize or small law firms, while 13% headed to the second 100 most prominent law firms in the U.S. by revenue. The shift leaves many job seekers looking for a home, and small and midsize firms have been eager to take advantage of the situation. Many of these associates looking for a job have worked on large deals, have excellent credentials, and could bring novel capabilities to their new firms.
It is still being determined whether the attorneys heading for midsize firms will stay put or return to BigLaw when the economy turns around and deal flow picks back up. However, Adam Oliver, co-founder of Firm Prospects, suggests associates should continue working and enjoy life at a smaller shop. A year from now, when BigLaw hiring picks up again, they may have the opportunity to return to a large firm. In the meantime, smaller firms are being opportunistic and innovative about hiring prominent lawyers.
