Biglaw Firms Struggle with First-Year Associate Numbers and Profitability
Biglaw firms in the US are reducing the number of first-year associates they hire, with the average number of new hires down by nearly 17% among Am Law 100 firms and 25% among Am Law 200 firms. Midsize firms also brought in 9% fewer first-year associates. This decline in hiring is part of cost-cutting measures to maintain profitability, as overall law firm direct expenses increased by over 6% in Q3 2023. However, there is still a strong lateral market for experienced attorneys.