In-House Hiring Gains Strength Despite Recession Threat
"One of the things we saw [from 2008 to 2010] is that when the economy takes a hit, corporations will move to hire in-house attorneys because it can be a cost-saver," Alice Rafalko, a senior legal consultant at Beacon Hill Legal in Philadelphia, said.
June 10, 2020 at 05:03 PM
4 minute read
In-house legal hiring went up in May and stayed in line with the Bureau of Labor Statistics report, which showed more legal jobs were added to the economy last month despite the threat of a looming recession, according to recruiters who spoke to Corporate Counsel on Wednesday.
"One of the things we saw [from 2008 to 2010] is that when the economy takes a hit, corporations will move to hire in-house attorneys because it can be a cost-saver," Alice Rafalko, a senior legal consultant at Beacon Hill Legal in Philadelphia, said.
The legal sector added 3,200 jobs in May after losing 60,000 jobs between April and May. The report currently shows 1,097,500 people working in the legal industry in the U.S. That number includes attorneys, paralegals and secretaries. That number is down 50,000 from this point last year when there were 1,147,400 in the legal sector.
The National Bureau of Economic Research announced this week that the U.S. is officially in a recession based on February seeing the last monthly peak in economic activity prior to the COVID-19 pandemic.
At the beginning of the pandemic, Rafalko said there had been a pause in hiring and onboarding new attorneys in corporate legal departments. She explained that individuals who were recruited became hesitant to leave their steady jobs to move elsewhere.
"While some of the actual hiring was slow during that time, now that the market is doing well and we're starting to see things loosen up, we're seeing an uptick in open positions," Rafalko said.
Jamy Sullivan, executive director of Robert Half in Dallas, said legal departments are optimistic about hiring as states begin to open back up. She said there is a range in what kind of attorneys that legal departments are seeking.
"There is a mixture, but I've seen more positions open for general counsel or senior corporate counsel," Sullivan explained. "Seven years of experience have been the immediate openings."
Chris Batz, legal recruiter and founder of The Lion Group in Kansas City, Missouri, told Corporate Counsel that many of the positions he's seen filled are those which had already been furloughed and are being refilled. He said he would expect legal departments to begin hiring in full force in the fall.
"I think if legal departments were not already planning to hire during COVID-19, they will hold off," Batz said.
However, Batz added corporate legal departments are not hiring en masse across the country. Although he has seen areas of growth in the financial and health care sectors.
When legal departments do begin hiring in full force again, Rafalko said she would expect life sciences to try to attract in-house attorneys as many companies work to find a vaccine to COVID-19.
"We anticipate that we will see more hiring for bankruptcy and corporate restructuring," Sullivan said. "Law firms do that but there are also corporations that do that kind of work or corporations that hire in-house counsel for that work."
Sullivan also said she would expect legal departments to hire litigation attorneys as the pandemic ends and companies prepare for lawsuits.
The numbers in the May jobs report have been criticized for not being entirely accurate. The Bureau of Labor Statistics admitted in its report that it counted approximately 4.9 million people as employed although they were unemployed.
Read More:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllLooming Legal Threats, the Murdochs' Influence Make Fox CLO Vacancy Both Alluring and Terrifying
Trending Stories
- 1Gibson Dunn Sued By Crypto Client After Lateral Hire Causes Conflict of Interest
- 2Trump's Solicitor General Expected to 'Flip' Prelogar's Positions at Supreme Court
- 3Pharmacy Lawyers See Promise in NY Regulator's Curbs on PBM Industry
- 4Outgoing USPTO Director Kathi Vidal: ‘We All Want the Country to Be in a Better Place’
- 5Supreme Court Will Review Constitutionality Of FCC's Universal Service Fund
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250