The UK legal sector in 2024 demonstrated resilience and some growth, and early signs in 2025 show this growth is ever increasing. There is no ‘one rule for all’ however overall hiring is picking up, particularly in specific practice areas and regions outside London.
- Overall Market Growth: The UK legal services market grew by 10% to £52 billion in 2024, with projections for a further 8% growth in 2025
- In-House Vacancies: The first quarter of 2025 saw a 20% increase in in-house legal vacancies compared to the same period in 2024. This is a significant indicator of companies strengthening their internal legal capabilities and planning ahead rather than outsourcing short-term to law firms.
- Financial Services Sector Leading the Way The legal hiring market in financial services (including banking, insurance, asset management, private equity, venture capital, and payments) showed strong growth in Q2 2025, with overall roles increasing by 17% year-on-year.
- Surge in Employment Law: Driven by anticipation of the Labour government’s Employment Rights Bill, employment law vacancies rose by nearly 34% in 2024, accounting for nearly 8% of all legal job openings. Law firms are actively recruiting to bolster their employment teams.
- Regional Growth Outpacing London: While London remains a legal powerhouse, there’s a recognisable “Northshoring” trend. In 2024, recruitment across the North of the country has outpaced all other areas, accounting for 42.7% of the total employment law vacancies. Regional areas are on track for a 57.7% increase in vacancies in this specific area, contrasting with a 7.7% decline in London employment vacancies in 2024. This suggests a strategic expansion of legal services outside the capital when costs are cheaper.
- Demand for Mid-Level Lawyers: Mid-level commercial lawyers (2-6 PQE) continue to be highly in-demand. The junior market (0-3 PQE) is also showing a tentative rebound – some firms are looking externally, having not recruited in their usual manner through the pandemic.
- Lateral Movement and Team Hires: The post-pandemic legal hiring market has been highly active, with significant lateral movement and team hires, especially by US firms in London.
- Challenges and Shifts:
- Corporate and Commercial: Some areas, like corporate and commercial, saw a reduction in vacancies at the start of Q2 2025, influenced by global uncertainties.
- FinTech and Technology: While strategically important, these sectors are seeing a temporary recalibration in hiring, influenced by factors like market consolidation and a shift from rapid growth to regulatory compliance.
- Conveyancing: Locum conveyancing work has been quieter, with an ongoing “standoff” between firms wanting office-based locums and locums preferring remote work. However, there have been recent increases in conveyancing roles posted.
- Permanent Recruitment: Some firms have seen a drop in permanent roles, attributed to overall market conditions, although this appears to be improving.
- Candidate Availability: Candidate registration numbers have dropped, which can be an indicator of nervousness in the market, but also suggests the market is not oversaturated with active job seekers.
My Take:
The UK legal market is certainly on an upward trajectory, but with more nuanced growth than before. The significant increase in in-house roles and the strong demand for employment lawyers are clear bright spots. The regional shift in some practice areas is also a key trend, offering opportunities outside the traditional London hub.
While some transactional areas might still face headwinds from global uncertainties, the overall picture is one of increasing activity and confidence. The re-emergence of pay rises and promotional moves, even if not at previous levels, signifies a healthier and more competitive environment for legal professionals.
If you’re a legal professional looking for a move, now seems to be a very opportune moment to explore the market, especially if your expertise aligns with the areas of highest demand or if you’re open to regional opportunities.
