Law firms and the legal industry saw significant financial growth in 2024. According to Citi’s Global Wealth at Work Law Firm Group:
- Demand increased by 2.9% in the first half of the year
- Productivity went up 2.1%
- Revenue jumped 11.4% compared to 2023
Wells Fargo’s Legal Specialty Group also reported a 12.5% revenue increase, nearly double the 6% seen the previous year.
What’s driving this? Higher billing rates, more transactional work, and strong client demand in corporate and real estate law.
Compensation Is Rising
With more revenue, law firms are paying top dollar for legal talent.
- Standard billing rates increased 9.1%
- Profits per equity partner rose 16.9%
- Some associates received bonuses over $1 million (WSJ)
Firms like Milbank set bonus structures ranging from $15,000 to $115,000, with additional summer bonuses and competitive salaries.
Hiring Outlook for 2025
Law firms expect continued growth in key practice areas, according to Citi’s latest report. Key areas for hiring include:
- Litigation
- Regulatory and antitrust law
- Private equity
- Healthcare, life sciences, and energy law
With increased demand, firms will need to expand their teams, making now a strong market for legal professionals seeking new roles.
Notable Firm Growth
Some firms have seen record-breaking financial performance in 2024:
- Paul Weiss reported a 31% revenue growth, reaching $2.63 billion, with average partner compensation rising to $7.5 million (Above the Law).
- Akerman recorded its 14th consecutive year of growth, with profits per equity partner rising 8.5% (Above the Law).
Challenges Ahead
Despite strong financials, some firm leaders are cautious. The rapid rise in lawyer salaries and bonuses may not be sustainable long-term. Competitive hiring is driving up costs, and firms will need to balance profitability with long-term stability (Reuters).
What This Means for Legal Professionals
If you’re in the legal industry—whether as a lawyer, paralegal, or legal operations professional—this is a good time to explore career opportunities. Firms are actively recruiting, and compensation remains competitive!
For law firms, staying ahead means strategic hiring and talent retention. Investing in recruitment now could set firms up for long-term success.
