The Good News and Bad News for Attorneys and Law Firms

News that the U.S. unemployment rate continued to decline in January 2012 is certainly good news. It is a reason for optimism about the continuing, but still somewhat delicate, recovery in the U.S.

That optimism is dampened a little by some fundamental issues that remain largely unaddressed by the U.S. government. (See Paul Krugman's column in the New York Times.) Whether or not these issues are ever handled in a serious manner in the near future will depend, to some extent, on the outcome of the U.S. elections in November. Even if President Obama is re-elected (which is more likely but still uncertain despite the stampede of Republican candidates to the extreme right of the American political spectrum) and has an obstruction-proof Democratic majority in Congress (which is much less likely), I do not expect any progress on the structural causes of high unemployment and economic sluggishness in the U.S. anytime soon.

But, let's take comfort that the unemployment numbers for January are improved. That is good news, even if happy days are not necessarily here again.

Bad news

Also this morning, Bloomberg reports that the Greek fiscal crisis and its threat to the euro remain a deep concern, despite progress that appears to have been made recently. These measures probably will not be enough. Until the euro problems are fixed, one way or the other, many euro-based transactions and business operations will continue to operate in the fog.

The impact on law firms

2012 is emerging as a "good news, bad news" year for law firms. The continued impact that significant uncertainties will have on law firms'  clients will also affect the ability of many law firms to plan and execute, with traditional levels of confidence, their strategy, business planning, and even some day-to-day operations. This is why my colleagues in Walker Clark and I advise law firms to adopt a posture of agile alertness in 2012, supported by contingency plans to address at least the most likely "what if" scenarios.

Read more on the Walker Clark Worldview 

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