After more than 10 years of economic expansion in the United States, another downturn was anticipated, but not for the reasons or in the way that it has occurred. The disruption caused by COVID-19 to U.S. (and global) economic output is unprecedented. Some estimates predict that the U.S. GDP could shrink by 9%—three times more than the drop in GDP during the 2008 Great Recession.

Law firms are not immune to this economic calamity. Based on the legal industry's experience in 2008, junior associates, associates trained in hard-hit practices, and counsel and partners without business are particularly vulnerable to layoffs, furloughs or salary reductions. Law students and 2020 graduates, too, face an uncertain future. When comparing the COVID-19 financial crisis to the Great Recession, however, the economic forecast may not be so dire for young lawyers.

At the outset, firms' responses to the COVID-19 global pandemic, as compared with the Great Recession, have tended to include more across-the-board responses rather than targeted layoffs. Some firms are reducing partner draws in addition to or instead of reducing associate pay. Summer programs may be shortened but not eliminated. Some firms are cross-training lawyers in slow practices to transition them, at least temporarily, to busier practices such as insolvency and litigation.

This difference may be attributed to the emotional component of the current crisis being rather different than that of 2008. For example, the added public health aspect of this 2020 crisis has garnered a communal "we're all in this together" attitude among many businesses. Some CEOs and upper management across the country are declining to take salaries, and companies such as Morgan Stanley and Salesforce, as well as large law firms like Vinson & Elkins and Fried, Frank, Harris, Shriver & Jacobson, have pledged to forgo layoffs altogether in 2020. Sacrifices are being made for the communal good, and the general feeling of empathy is palpable.

Additionally, the Great Recession led to significant changes in many law firms' operations that continue as the industry faces this crisis. To say that firms tightened their belts would be putting it lightly. Summer class sizes, support staff ratios, employee benefits such as 401(k) matching, fancy events, expense reimbursements and recruitment were significantly reduced. Those numbers have typically not returned to pre-recession levels. Many law firms stayed lean and kept new class sizes and lateral hires to a relative minimum. It is possible that the overall jolt to hiring, staffing and recruitment practices will be less significant in the current recession than it was 12 years ago. When class sizes are smaller and law firms are run leaner, there are fewer expenses to cut.

As a result, it appears that law firms are generally much better situated financially now than in 2008. When the 2008 economic crisis hit, many firms had messy balance sheets, were heavily reliant on bank loans and outside credit, and were bound to extravagant guarantees to lateral partners. Since then, many firms have cleaned up their finances by pursuing greater capital contributions from partners, as well as establishing significant emergency financial reserves. Although smaller, midsize and regional firms may still be more vulnerable, some solace should be taken in the fact that lending to law firms has far exceeded the 2008 numbers, with JPMorgan extending lines of credit totaling over $50 billion as of early April. When it comes to firms in need, the necessary capital can still be raised at this time, which is a stark contrast to the limited financing options that were available to businesses during the Great Recession.

It should also be noted that the respective causes of these crises play a significant factor in the economy's recovery. In 2008, mismanagement of the housing market sent the U.S. economy into a tailspin, whereas now it is an external disaster—a virus, rather than structural dysfunction—that is the culprit. While tens of millions of people have filed for unemployment, furloughed workers should hold out hope that with social distancing measures—and once a vaccine is available—the U.S. economy, including its law firms, may very well bounce back.

Firms' reactions to COVID-19 also seem to be informed by the reputational consequences that came as a result of drastic actions taken in the wake of the Great Recession. One may recall that, in 2009, Latham & Watkins laid off 440 associates and staff at once, many of whom were first-year associates with little clout to find another job in Big Law, causing a public relations nightmare that canonized the phrase "to be Lathamed" as synonymous with a lawyer's early meritless dismissal.

Since 2009, the world has become even more digitally and socially interconnected than ever before, and thus firms run a higher risk of widespread negative publicity for decisions made in response to this crisis. Taking note from Latham, firms are now hypervigilant to maintain good PR and avoid becoming the poster child for callous and financially driven behavior in chaotic times. Stealth layoffs and small-scale staff reductions may not always be noticed by the general media, but lawyers, law students and lateral partners are now more literate about which firms are undergoing larger layoffs and salary reductions, which are being tracked by a number of news outlets. Firms don't want to be named and shamed, as actions taken now are sure to have an impact on reputation and recruiting in the future.

For law students and 2020 graduates, another notable difference between 2008 and 2020 is the law school admission process for prospective law students. In the years leading up to the 2008 economic crisis, it was widely believed that it was best to go to the best law school one could, take on as much debt as one needed, and figure out the rest. This led to an unfortunate majority of early-aughts law grads spending the last decade mired in high levels of student debt.

The prospective lawyer of 2020 is generally more savvy and nimble—playing one school's financial aid offer against another, negotiating for top scholarship dollar, weighing cost-of-living differences, and opting for a degree from a second-tier school with a big scholarship offer over a full-price degree from a top law program. Moreover, many law schools have increased financial aid as a result of the Great Recession. Increased financial literacy and awareness may help law students and young lawyers better navigate this crisis and have greater flexibility in geographic location, pay, benefits and type of employer to successfully navigate the current recession.

None of this is to say that the current economic crisis will not have a significant impact on young lawyers' or law students' careers, or that weathering this period will be easy. It's also early to predict how deeply the legal industry will be hit. However, there are some lessons that young lawyers and law students may want to consider in how their analogues responded to and moved on from the 2008 economic crisis.

There is opportunity in crises, which tend to reward individuals who can be flexible and creative. A career in Big Law practicing in a specialty area hit hard by the economic crisis may be exceedingly difficult over the coming years, demonstrating that while a degree of specialization is important, there is value to developing a well-rounded skill set as a young lawyer. It can help to be flexible as to the type of firm or area of law in which to practice and develop that skill set. For example, this crisis will likely result in years of disputes and insolvency proceedings that can be a path for a young lawyer or law student. That said, these are some obvious areas of near-term growth that many attorneys will likely be flocking to, so young lawyers can also try to be on the lookout for other potential growth opportunities in areas such as cyber (as a remote workforce becomes longer term) or biotech. Further, if the investigations launched by the enforcement agency for the last recession's relief program are any guide, there will be plenty of work relating to fraud and abuse in connection with various stimulus funds that have been doled out. And even if your ideal practice area is hard hit at the moment, keep looking out for those opportunities while developing your overall skill set.

Young lawyers and law students generally also have a level of technological skill and expertise that far exceeds the average practicing lawyer, providing an advantage and creative opportunities where social distancing may limit more traditional methods of networking and collaboration, such as establishing networking groups of remote attorneys with similar interests or leading team building via video or social media. Young lawyers and law students should also take advantage of the boom in available information over the last decade, as mentioned, to vet firms and other potential employers for the strength of their position and response to the crisis. And consider speaking to lawyers who are 10 to 12 years out, many of whom have succeeded in firm and non-firm, attorney and non-attorney career paths over the last decade despite early setbacks. This time, we are truly all in this together.

The views expressed here are personal to the authors and do not represent the opinions of their employers.