London – UK Legal Labour Market Trends, November 2024
London’s Legal Vacancies Soar: Real Estate and TMT Sectors Lead Remarkable Growth
Key findings include:
- A 13.3% increase year-on-year increase in legal vacancies in London, as compared to a nationwide increase of 15.9%
- Real estate is expected to see the largest year-on-year change in vacancies, with an increase of 72.4%
- Within in-house legal vacancies in London, the Technology, Media, and Telecommunications industry has the largest forecasted year-on-year growth, up by 20.5%
- CMS Cameron McKenna forecasts the large
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The general election’s immediate impact has, unsurprisingly, led to record recruitment, particularly in July. Moreover, Labour’s focus on employment law reforms has driven a surge in demand for employment lawyers, with August also seeing record levels of legal recruitment. Legal vacancies in London increased by 13.3%, while the rest of England and Wales experienced a 17.4% rise following a dip in 2023.
Furthermore, law firms are set to benefit from improvements in the banking and financial sectors, with increased M&A activity and stronger foreign investment driven by Sterling’s appreciation. Meanwhile, salaries at UK Magic Circle firms have soared to £185,000 for NQs, narrowing the gap with US firms, which is likely to prompt competitive responses. This is according to the latest UK Legal Labour Market Trends report by leading professional recruiter EJ Legal and market data analysts Vacancysoft.
London Law Firms See Surge in Legal Vacancies
London law firms are seeing a significant rise in vacancies, with real estate leading the way. Vacancies in this area have soared by 72.4% year-on-year, now making up 17.2% of all legal vacancies—the largest market share of any practice area. Banking & Finance has also rebounded strongly, shifting from a 45.4% decline in 2023 to a forecasted 68.5% increase, with its share rising to 7.7%. Meanwhile, litigation and dispute resolution has grown by 40.1%, continuing its steady climb. Corporate/M&A vacancies have risen by 50%, reflecting broader trends in Financial Services. Overall, legal vacancies are up 35% from January to August, signalling strong demand for talent across private practice.
TMT Leads Surge in London In-House Legal Vacancies
The Technology, Media, and Telecommunications (TMT) sector is leading the growth in in-house legal vacancies in London, with a projected year-on-year increase of 20.5%, reaching 612 positions. This will account for 35.8% of total vacancies, up from 29.5% in 2023, marking TMT as the largest share for the third consecutive year. Additionally, in-house vacancies overall saw a significant rise in July, with a 36.8% increase, the largest monthly growth this year. July recorded 182 vacancies, following a 35.5% rise in May. However, Q2 2024 saw a 13.3% drop in vacancies after a strong Q1. Meanwhile, Consumer Goods and Services and Public sectors are seeing notable declines.
CMS and BBC Lead Surge in 2024 Legal Vacancies
The legal sector is experiencing a rise in vacancies across leading firms. CMS Cameron McKenna leads with a projected 137.5% year-on-year growth in 2024, while DAC Beachcroft is set for a 75% increase. Both firms have expanded significantly, with DAC Beachcroft opening new offices, including its new London headquarters.
Following the A&O and Shearman & Sterling merger, A&O Shearman recorded a 37.5% increase in vacancies. Charles Russell Speechlys posted the highest volume with 81 vacancies this year.
Outside the legal sector, the BBC is projected to see a 145.5% rise, while TikTok is set to decline by 29.4%. JP Morgan remains the only bank in the top twenty, with a 9.1% increase.
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