Looking Ahead: Legal Market Trends to Consider as 2019 Unfolds
January has passed and 2019 is fully underway, bringing with it a host of new challenges and opportunities! As we look at the future of the legal market, it’s worth noting that some trends have remained relevant. The importance of tightly-bound technology deployment in the legal industry, in particular, is continuing to create a significant opportunity for attorneys who are willing and able to engage with the tech-side of the business and develop familiarity (and possibly expertise) in that area.
That being said, trends are not absolute indicators of value. The market can change significantly in a year or two. As such, making long-term career decisions exclusively based off trends is not always a good idea. In fact, a “trend” is perhaps more useful for helping tip the scales when making decisions with regard to one’s career. If you are attempting to specialize in a particular industry, for example, but legal work in one industry is trending upwards quite a bit (in comparison to the other), then the trend can inform your decision.
So, what trends do we see impacting the industry in 2019 (and beyond)? Consider the following.
Outside Counsel Spending is Trending Up
Though industry observers have raised a great deal of hoopla about the consolidation of legal talent in-house, market trends point to an increase in outside counsel spending. Spending on outside counsel (via Biglaw) is indicative of the continued health of large firms in the legal industry, and perhaps proof that in-house departments cannot replace the role of firms, particularly in complex matters.
Healthcare and Tech Industry Spending is Trending Up
To the surprise of no one (who is informed about legal industry spending), healthcare and tech industries continue to be major spenders in the legal market. Pharmaceutical companies in particular are raising their spending, making these industries a great long-term choice for attorneys looking to develop specialized expertise in a practice area. It’s worth noting that spending is up in these industries for outside counsel, too, so there may be no need to transition into an in-house position if you are pleased with the opportunities for advancement available to an industry specialist in Biglaw.
Legal Tech Becoming Firmly Entrenched
Legal tech is becoming an increasingly critical part of many firm and in-house departments, and has intertwined itself with various processes, including client-facing processes (i.e., case updates, budget planning, documentation exchange, etc.). In fact, as 2019 progresses, we expect that many clients will see firms that fail to more tightly-integrate their tech processes as “dinosaurs.” This perception will likely apply to attorneys as well. It’s about time that attorneys develop the tech skills necessary to properly use the technologies that are now being implemented across the industry.
Continued Struggles in Capturing Cost-Effective Strategies
Firms and in-house legal departments are dealing with the growing pains of their various attempts at capturing a cost-effective legal strategy.
Though in-house legal departments in recent years began to expand rapidly in a ploy to bring significant attorney expertise and specialization into the fold (internally), this strategy seems to have been less comprehensive than initially anticipated — outside counsel spending has actually increased. Some industry observers believe these contradictory results are due to other factors (i.e., decreased rate of settlement), but it’s more likely that all of these factors are having a combinatory effect. The shift of legal work internally has possibly led to an inability to resolve legal conflicts early through settlement, requiring additional spending on outside counsel.
As firms and in-house legal departments wrestle with cost-effective strategies in a rather chaotic manner, attorneys should be careful to position themselves for a job transition by making themselves more desirable candidates overall — developing expertise in a practice area or industry, developing legal tech familiarity, engaging more closely with clients, etc.
Speak to an Experienced Los Angeles Legal Recruiter at Garb Jaffe & Associates
Here at Garb Jaffe & Associates, our legal recruiters have decades of experience guiding attorney-candidates through the recruitment and hiring process, every step of the way. We have helped attorney-candidates secure ideal positions through numerous changes in the legal market, including the fundamental shift post-2008 from which the industry is still attempting to fully recover.
Over the years, our experiences have empowered us with a keen understanding of what makes a particular candidate “attractive” to firms and in-house legal departments. This knowledge, in conjunction with our extensive network of attorneys and firm/department administrators throughout California, enables us to identify “ideal” positions for our clients and execute a recruitment strategy that maximizes their prospects.
Ready to learn more about how we can help you secure your next position? Call 310-207-0727 or send us a message online to connect with a skilled Los Angeles legal recruiter at Garb Jaffe today.
We look forward to assisting you further.