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The U.S. legal services sector experienced a decline of 1,200 jobs in July. This downturn in employment comes amidst ongoing scattered layoffs at prominent U.S. law firms.
Preliminary seasonally adjusted data released by the U.S. Bureau of Labor Statistics unveiled that the legal sector’s job count for last month stood at 1,182,500. It is important to note that this figure encompasses various legal professionals, including paralegals and assistants, with the majority being lawyers, as indicated by figures from the Labor Department.
Furthermore, the jobs report released on Friday revised its initial projection for legal sector employment in June, initially touted as nearing the historic high achieved the previous summer. This correction saw June’s job count revised from 1,185,100 to 1,183,700.
The ripples of this employment decline have been felt at major U.S. law firms, with notable names like Katten Muchin Rosenman and Armstrong Teasdale announcing layoffs this week in response to reduced demand.
Katten Muchin Rosenman, a firm originally founded in Chicago and boasting around 700 lawyers, reported that less than 5% of its legal professionals and staff were let go. Similarly, Armstrong Teasdale, which comprises a legal team of 800 lawyers, announced a downsizing of about 3% of its legal personnel and 6% of its staff.
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These recent layoffs add to the list of similar measures taken by over a dozen large law firms since November, painting a complex landscape for the legal industry’s employment outlook.
Simultaneously, the broader U.S. economy maintained a moderate rate of job growth in the same period. Solid wage gains coupled with a decline in the unemployment rate indicate the ongoing tightness within the labor market.
As law firms like Katten Muchin Rosenman and Armstrong Teasdale make strategic employment adjustments in the face of reduced demand, the U.S. legal services sector finds itself grappling with the larger economic trends that continue to shape labor market conditions. The industry, characterized by a mix of legal professionals contributing to its diverse workforce, remains poised to adapt and navigate the evolving landscape of employment opportunities.
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