US legal sector jobs continued to climb in June
By Karen Sloan
July 2 (Reuters) - The U.S. legal sector added 5,100 jobs in June, pushing legal employment to an all-time high for the third straight month, according to figures released on Thursday by the U.S. Department of Labor’s Bureau of Labor Statistics.
The total number of jobs in the legal sector, including lawyers, paralegals, judges and legal assistants, hit 1,243,500 in June, the preliminary data show, up 0.41% from 1,238,400 in May. That represents an 8.4% gain from five years ago, offering more evidence that legal AI tools have yet to cut into staffing.
"We're not there yet," said Justine Donahue, a partner at legal recruiting firm Macrae, of AI-related legal job cuts. Instead, she said, firms are rushing to capitalize on AI work and need people to staff those matters.
The increase in legal jobs comes as overall U.S. job growth slowed more than expected in June and payroll gains for the prior two months were revised lower, with some economists attributing the job growth slowdown to a delayed reaction to the Middle East war. Nonfarm payrolls increased by 57,000 jobs last month after a downwardly revised 129,000 rise in May.
The unemployment rate dropped to 4.2% last month due to about 720,000 people leaving the labor force, which pushed down the participation rate to the lowest level in more than five years, according to the Labor Department report.
The legal employment market has enjoyed a strong 12 months, with March being the only month to post a job decline during that time. The total number of legal jobs has increased 1.9% in the past 12 months, the Labor Department data show.
Recent legal industry reports have found that strong billing rate growth and demand have bolstered law firm profits. Major IPOs and a steady flow of deals have kept corporate law firms busy, Donahue said.
“Deals are up and money is flowing,” she said. “Litigation is as high as it's been — complex civil litigation in particular, which drives all manner of life, from juniors and seniors to vendors and legal supports.”
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