Legal Eagles Find Ways of Riding Out the Recession

Like many industries, the legal sector continues to evolve in response to economic shifts, workforce trends, and client demands. While market downturns can be challenging, the legal profession has shown remarkable resilience by embracing flexibility, shifting focus areas, and leveraging technology.

Whether you’re a law student, early-career solicitor, or seasoned professional considering your next move, understanding how the legal job market is shifting in 2025 can help you stay competitive and forward-thinking.

Private Practice: Demand Shifts and Flexible Working

Many large firms are navigating a more cautious client landscape. While activity in transactional areas like mergers & acquisitions and property law has cooled slightly due to economic tightening, other areas—such as commercial litigation, insolvency, regulatory compliance, and employment law—are booming.

Rather than downsizing, many law firms are retaining talent through creative solutions such as:

• Flexible work hours and compressed workweeks
• Part-time and contract options
• Remote and hybrid roles
• Leave-with-return agreements to manage headcount without losing talent long-term

Workplace flexibility is no longer a trend—it’s now a core part of legal recruitment and retention. Progressive firms like King & Wood Mallesons (formerly Mallesons Stephen Jaques) have long embraced these models and continue to see strong engagement and productivity from their legal teams.

Government Roles Offer Stability and Growth

Increased investment in public infrastructure, healthcare, defence, and sustainability projects is fuelling demand for government lawyers, regulatory specialists, and contract experts. Legal professionals are also finding growth opportunities in policy development and public sector advisory roles.

Government legal careers are increasingly attractive due to their perceived job security, structured career pathways, and work-life balance. Opportunities range from federal departments and regulatory bodies to local councils and infrastructure authorities.

To explore working in the public service, visit the APS Jobs Portal.

Contracting and In-House Counsel Roles Are Rising

Legal contracting is becoming a permanent feature of the industry. Companies are engaging lawyers on a short-term or project basis to manage workflow spikes, handle complex transactions, or provide niche expertise—especially in areas like:

• Privacy and data law
• Financial services regulation
• Mediation and dispute resolution
• Digital contracts and intellectual property

If you’re seeking flexibility or re-entering the workforce, contracting or in-house legal roles can offer a lower-pressure alternative to big firm life—while still delivering competitive compensation.

Small and Mid-Sized Firms Gaining Ground

Clients are increasingly turning to boutique and mid-tier firms for cost-effective legal advice—especially in areas like family law, employment, property, and start-up advisory services.

As a result, these firms are actively hiring junior and mid-level lawyers with practical experience and strong client communication skills. Smaller firms often offer faster promotion paths, hands-on exposure, and more work-life flexibility compared to top-tier firms.

Where the Opportunities Are in 2025

Legal employment trends vary by region, but some national themes are clear:

• Increased demand for lawyers in insolvency, employment, and litigation due to economic headwinds
• Growth in tech-related law, including cybersecurity, AI regulation, and IP law
• Health, energy, aged care, and ESG sectors continue to hire in-house counsel
• Corporate governance and risk compliance roles are expanding, especially in finance and listed companies

Tech-savvy lawyers and legal professionals with a business mindset are especially valued in the current climate. Consider combining your legal expertise with skills in business, project management, or technology to broaden your career options.

Thinking About a Legal Career or Career Shift?

Whether you’re just starting out or ready to pivot within the legal field, Australia’s legal industry offers more career pathways than ever—especially for those willing to embrace flexibility and cross-functional skills.

Explore relevant qualifications and pathways:

• Legal and paralegal studies
• Criminal justice and investigation
• Conflict resolution and mediation
• Risk, ethics and corporate governance