In 2023, new law school graduates entered the job market with unprecedented success. According to the National Association for Law Placement (NALP), employment rates and salaries reached record highs.
Cooling Job Market for Future Graduates
Despite the strong performance of the class of 2023, NALP officials caution that subsequent classes may not replicate these achievements. The once red-hot market for lawyer talent in 2022 and early 2023 has started to cool, with law firms reducing new associate recruiting efforts.
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Impact of Previous Hiring Spree
Many 2023 graduates secured positions during the competitive hiring spree of 2021 and 2022. During this period, law firms fiercely competed for new associates and lateral hires, driving starting associate pay from $205,000 to $215,000 at many large firms. Multiple bonuses were also offered to retain associates.
Decline in Recruitment Activity
However, law firm recruiting reached an 11-year low in the fall of 2023. Firms extended fewer summer associate offers, reflecting lower demand for transactional practices. The average number of offers decreased from 28 in 2022 to 22 in 2023, with a 19% overall reduction in summer associate offers.
Implications for Future Employment
The reduction in summer associate positions in 2023 suggests that fewer law students will be hired for full-time positions upon graduation in 2025. Additionally, the class of 2024, which is 12% larger than its predecessor, will face increased competition for jobs, potentially leading to lower employment rates.
Employment Statistics for the Class of 2023
Among 2023 law graduates, 92.6% secured jobs within ten months of graduation, the highest rate since NALP began tracking this data in 1974. Over 82% of these graduates found positions requiring bar passage, while the unemployment rate dropped to 5.8%, the lowest since 2007.
Record-High Salaries for New Graduates
The national median salary for new law graduates reached an all-time high of $90,000 in 2023, up from $85,000 in 2022. For those in private practice, the median salary increased from $150,000 to $165,000.
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