Recession Slamming Legal Industry

The legal industry is being hit hard by the recession. Several blogs provide daily updates and there is a  layoff tracker at LawShucks.com 

Major law firms are turning out to be just as susceptible to general economic conditions as every other industry. Historically, layoffs by top-tier firms were kept quiet and were done on a one-off basis. We’re trying to shed a little light on the situation.

As of March 31, 2009, there have been over 9,946 people laid off by major law firms (4,046 lawyers / 5,905 staff) since January 1, 2008. For the first quarter of 2009, 7,999 (3,149 lawyers, 4,850 staff), 3,677 in March alone (1,334 attorneys, 2,343 staff).

Subscribe to the blog Above the Law on your google or other reader and prepare to be depressed. The site provides daily updates from mega-firms complete with bootlegged emails announcing that the ax has been dropped.

It appears that the site defines major law firms as huge firms based in major cities. I do not believe that any firm with a presence in Mississippi fits their criteria for a major firm, but the recession is being felt everywhere. There is no doubt that Mississippi firms, attorneys and support staff are suffering. Hiring by law firms in Mississippi is down. There are rumors around town about layoffs, particularly of contract attorneys and staff. I have also heard that law school graduates are finding it very difficult to find a paying job in the legal field.       

In the litigation arena Mississippi began its recession a good five years ago with the change in joinder law, tort reform and a conservative supreme court sending mass tort plaintiff lawyers in search of greener pastures in other states. Katrina related litigation helped, but those cases have mostly been resolved. There are just not as many big cases in Mississippi as 5-10 years ago, with cases like Eaton v. Frisby being the exception. And no one I know sees that changing anytime soon. 

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