In the balance

By 30 April 2009 most law firms had substantially completed a round of cost cutting which saw trainee solicitors deferred, associates and support staff made redundant and partners either exited or reduced to a fix share or consultancy roles. After this unprecedented upheaval in law firms, many law firm leaders are now hunkering down and waiting for the market to return to “normal” and for the good times to roll again. Such an approach will be a mistake as, despite the recent recovery in the world’s stock markets, there is still likely to be a relatively sustained period of uncertainty before a level of stability returns to the legal market.

Law is traditionally a lagging indicator of the economy. Although, this time, there was only a short time lag before law firms felt the effect of the recession it may still be 12 to 18 months before the legal market returns to a level that can be described as normal.