A Note From LawCrossing

As you are no doubt aware, with the current fluctuations in the economy, the legal market is beginning to slow quite dramatically. Especially hard hit are attorneys working in the securities and real estate sectors. A large number of companies and law firms have begun layoffs and there are no signs that the situation will improve anytime soon. From what I have been hearing, even though the pundits are avoiding the term, there is a good chance that the United States is now in a recession.
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The current economic situation is somewhat analogous to what occurred in 2000-2001. There was an economic boom ("the Internet bubble") that created a great deal of legal work, then the bubble burst and much of the work (and jobs) disappeared. More recently, we had a real estate boom which created a great deal of legal work and has slowed dramatically. This has affected the financial and real estate sectors the most; however, a lack of liquidity in the markets will likely have broad implications for most law firms. The availability of investment capital fuels spending in intellectual property, for example. Moreover, it is axiomatic that companies tend to spend more on outside services such as law firms when times are good than when the economy is in trouble.

What occurred in 2000-2001 with corporate attorneys, in particular, was quite shocking: Tens of thousands of corporate attorneys lost their jobs and a significant percentage of stopped practicing law completely after not finding work for months. The corporate work came to a virtual standstill at most firms in Silicon Valley and San Francisco. What made this so absurd was that most firms did not call these layoffs and instead told most attorneys they were being let go for performance reasons. I knew of many people who went to schools like Stanford Law School and were practicing at well know major firms then like Venture Law Group, for example, who actually ended up moving back in with their parents and are now in completely different careers.

Granted, I know they are a paid service to help assist with finding jobs; however, I believe this is an accurate representation of the current market. And, for someone who has been unemployed for quite some time now, it is not refreshing or comforting to read.