The legal services sector added 1,600 jobs in September, marking a reversal of the job losses that began in the spring, according to Labor Department data released on Friday.
Legal sector employment climbed to 1,181,400 jobs last month, based on preliminary seasonally adjusted figures from the U.S. Bureau of Labor Statistics. This rebound comes after steady job losses since April, when the sector reached 1,188,200 jobs.
The broader U.S. job market also showed growth in September, with unemployment dropping to 4.1%. This trend may reduce the need for the Federal Reserve to continue aggressive interest rate cuts during its two remaining meetings this year.
The legal sector saw its peak employment this year in February, with 1,190,300 jobs. John Cashman, president of the recruiting firm Major, Lindsey & Africa, noted a “robust” demand for legal personnel over the past four months, driven by companies and large law firms across various practice areas and regions. “Very steady, very noticeable hiring,” Cashman said.
The Labor Department’s employment count covers a range of legal roles in law firms, corporations, and other organizations, including paralegals and assistants, with lawyers making up the majority of these jobs.
U.S. law firms have reported strong financial performance in 2024. According to Wells Fargo’s Legal Specialty Group, law firm revenues increased by an average of 11.4% in the first half of the year compared to the same period in 2023.
Additionally, demand for transactional practices has picked up after nearly three years of sluggish activity, as indicated by the Thomson Reuters Institute’s Law Firm Financial Index, which tracks financial metrics for 195 large and midsize law firms.
