2025 - The Rollercoaster Continues

With a challenging economic climate, seismic political shifts abroad and the continual prevailing winds of change driven by developments in tech, the UK legal jobs market is set for an interesting 2025. The impact all this will have on recruitment is yet to be seen, but we’ve done our best to set out an overview of the trends and influences in legal recruitment over the next 12 months.

Economic climate?

A downgrading of economic growth predictions at the start of the year is never good for any jobs market, least of all for lawyers. The legal profession has always been a sensitive barometer of the economy and soundings from the Bank of England that we will only narrowly avoid recession will no doubt have a certain chilling effect on recruitment at least in the immediate term. The UK economy is forecast to grow by only 0.75% which is down from the 1.5% growth predicted in November.

But it’s not all doom and gloom. Commentators such as EY still anticipate that there will be quarter-on-quarter growth this year. The Bank of England has already made one interest rate cut to increase consumer confidence and hopefully promote greater levels of household spending. Moreover, growth is anticipated to reach 1.6% in 2026.

Opportunities for growth

Even in a weaker economy, there are still noticeable pockets of growth. The strong UK financial services market mean that law firms will still seek to strengthen their respective offerings. Teams focusing on public sector work are also set to be busy as the government sets out its long-term plans for investment in services and infrastructure. Law firm TLT certainly seems to echo this sentiment with the dramatic expansion of its energy, infrastructure and planning capabilities with the impressive hire of a sizeable chunk of lawyers from Broadfield (formerly BDB Pitmans).

The insurance market as ever appears to be resilient with the big legal players showing no sign of breaking their stride in 2025. Furthermore, other areas such as regulatory and cyber security look to remain robust in the face of economic uncertainty.

Even lawyers in corporate seem optimistic with M&A and Private Equity predicted to enjoy some resurgence this year.

AI and automation

The growth in investment in tech continues apace with law firms large and small harnessing AI, automation as well as general developments in IT to remain competitive as well as making longer-term decisions for the future. In December, the Law Society reported that over a third of UK law firms will spend up to ￡100K in investing in technology. Leveraging its advantages will become increasingly important as law firms compete for work whilst considering long term sustainability.

Translation into recruitment

Commenting on the vicissitudes of the legal recruitment market is all very well, but the ultimate question is, will the current market result in an increased demand for law jobs. The simple answer is yes.

The legal jobs market remains strong. Though it is perhaps not as candidate-driven as it has been in previous years, lawyers with good experience will be sought after in most sectors. Most firms and departments we speak to are still keen to strengthen their offerings, not least as the economic uncertainty is believed to be temporary.

The disappointing close to 2024 in financial terms and subsequent pressures on the economy will probably lead to some hesitation up to financial year-end, which for most firms in March 2025. After that, we anticipate an uptick in instructions as recruitment budgets are approved and law firms press on with their own growth plans. Indeed, it is clear that many law firms see this as a year of opportunity rather than of stagnation.

Make no mistake, 2025 will be a challenging year, but where there is challenge, there is opportunity. If you would like to speak with us concerning your career or recruitment needs, please don’t hesitate to get in touch.

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