More Lawyers and More Law Schools: Too Much of a Good Thing?

We've all seen the headlines-fewer associates being hired, firms laying off attorneys, law school grads working in department stores or sending out thousands of resumes and applications yet finding no jobs. So why, then---with eyes wide open---would law school applications be up 7% this year, according to  The National Law Journal.  Is it unbridled passion for the law, or as one author describes, unbridled "stupidity,"  that is driving the increase?   The Careerist compares Law Schools with Puppy mills,  and blames the schools for suckering students who "still think there's a pot of gold at the end of the three year ordeal, despite all evidence of a shrinking legal market."  The Careerist  goes on to focus the blame on the Law Schools for failing to warn of the bad job market while "acting like it's still 2006," then suggesting that students should be warned about this "risky investment" before spending $100,000-plus dollars for tuition.

Several disturbing sets of statistics support the Careerist's suggestion that law students should be warned. The legal profession lost 22,000 jobs in the past year according to the Bureau of Labor Statistics.  A survey of managing partners at 200 US firms conducted by Altman Weil indicates that 42% predict permanent reductions in the size of first year associate classes (The National Law Journal.).  Add to that the summer associate survey conducted with data from 114 law firms that indicates a 44 percent drop in hiring this year, according to the Am Law Daily.  That report goes on to show that responding firms hired an average of 31 summer associates this year, down from 55 last year.  One large firm (Ballard Spahr) reportedly eliminated their summer associate program this year, while 35 of the responding firms cut their summer associate classes at least in half, some as much as an 81% reduction.

Our current Lexis Hub poll asks recent law school grads who have not yet found their dream job what they are doing following law school.  The largest number of respondents-46% say they are still looking for a position.  Twenty-three percent are working outside of the legal profession,  23% have accepted temporary employment.  Only 8% say they are in an acceptable position for now.

Looking for the light at the end of the tunnel, NALP Executive Director Jim Leipold says in this report that  he expects the class of 2012 to be the first to see an uptick in employment.  Although summer associate programs are being drastically reduced by many firms, Leipold says those with that valuable experience are the most likely students to be hired after graduation in this tough economy.