Year in Review – UK Legal Labour Market Trends, January 2025
Key findings include:
- The UK legal sector recorded a vacancy growth of 14.2% across England and Wales
- The total number of vacancies in the Private Sector has risen by 25% compared to 2023
- An overall increase in the In-House sector is up just 3%
- JPMorgan Chase & Co. posted a 13% increase
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Amid political transition and economic recovery, 2024 proved largely positive for the UK legal sector, with vacancies rising 14.2% across England and Wales. A post-election surge in M&A activity, especially large-cap buyouts, drove demand for legal professionals, aided by falling interest rates. The strongest growth occurred between June and July, with vacancies jumping 27.2% month-on-month. London posted an 11.7% rise, while regional areas outpaced the capital with a 15.5% increase. Private practice roles led the rebound—up 22.9% in London and 25.8% elsewhere. However, in-house legal hiring weakened slightly outside London, and automation of junior roles via AI may temper future growth, particularly in procedural work.
Private Practice Hiring Surges
The legal sector saw a 25% year-on-year rise in vacancies in 2024, with strong momentum across top practice areas. The most active quarter was Q3, peaking at 1,887 roles before a 16.9% drop in Q4—reflecting political and economic shifts around the general election. Real estate law led growth, with vacancies surging 63.9% amid stamp duty reforms and infrastructure projects, capturing 23.6% of the market. Litigation and dispute resolution also surged, up 38.8%, while employment law rose 32.3%, driven by anticipated regulatory changes. Despite steady demand in tax, global fiscal uncertainty keeps the area under watch. July marked the monthly peak, indicating a strong post-election hiring rebound that may be tested in 2025.
In-House Legal Market Grows Cautiously as Tech Leads and Banking Lags
The in-house legal market posted a modest 3% year-on-year increase in 2024, reflecting subdued overall growth outside the public sector, which continued to contract. September marked the peak, with 381 vacancies after a sharp 55.5% month-on-month surge, while Q3 was the strongest quarter overall. The technology sector led in-house hiring, growing 29.2% year-on-year as demand rose for legal support in IP, data, and IT. In contrast, the banking sector declined by 14.8% amid strategic cutbacks and fintech disruption. Insurance saw steady 10.9% growth, while media posted a slight increase driven by AI-related legal disputes—though recent settlements suggest this may taper off. Cautious optimism defines the outlook for 2025.
JPMorgan Leads Growth
The 2024 legal hiring landscape among top employers revealed a fragmented picture. Of the ten leading law firms, only six posted year-on-year vacancy increases, while just four in-house organisations saw growth. The Financial Conduct Authority recorded the sharpest drop—vacancies fell 60.5%—as post-Brexit regulatory projects concluded and outsourcing gained traction. Despite this, the FCA remained the top in-house legal employer. Barclays also reduced hiring by 42%, in line with sector-wide contractions, though JPMorgan reported a 13% rise. In private practice, DAC Beachcroft led in total vacancies but saw a 14.1% decline, while firms like Weightmans (+19.7%), Simmons & Simmons (+13.2%), and Irwin Mitchell (+5.1%) reported solid, sustained growth.
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