There was the Golden Age in the legal sector.
Then the Crash of 2008. Remember how 6,000 lawyers got put out on the street in 2009.
After that, the legal and business media had a fun time describing the humbling of BigLaw. The exceptions were the law firms you never get fired hiring when you have bet the ranch litigation or high-stake transactions.
Articles about Artificial Intelligence putting out of work all but a few partners and how BigAccounting was starting to eat BigLaw's lunch were commonplace.
Corporate legal departments were doing more work in-house.
It was a buyers' market.
The billable hour was predicted to be dying.
Now, comes the Citi Private Bank report on 2018 results. It was a very good year - the best in 10 years. In fact, White & Case broke through the $2 billion ceiling.
But, in Abovethelaw.com, Joe Patrice asks: Given all we know about the dynamics and trends in the legal sector, is this sustainable? Will demand continue in an upward trajectory? Will PPP (profits per partner) also keep heading north?
Think about it. The "it" is reality.
AI is still developing applications.
BigAccounting is expanding its legal footprint globally. Its edge is that it can cross-sell to an existing client base.
In-house is mandated by the powers that be, just as with the rest of corporate functions, to do more with less.
It still is a buyers' market for all but those you-never-get-fired using them firms.
Also, depending on what supposed expert you follow, there could be a recession. When? End or 2019 or in 2020. Its severity and duration remain uncertain. Already the housing market is stuck.
Meanwhile, the immediate issue: How will the job placement pan out for the JD Class of 2019? Last month the Department of Labor noted a flat job market in legal sector. Before that, there were two consecutive months of job losses.
Also, there is the matter of how long those hired will be able to hang onto their jobs. Partnership slots are down. In addition, partners who are not making their quota of billable hours and not developing enough new business are being forced out.
The business of the legal sector remains the story to follow closely. That began with the Crash.
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