• Employment

Lawyers held about 759,200 jobs in 2008. Approximately 26 percent of lawyers were self-employed, practicing either as partners in law firms or in solo practices. Most salaried lawyers held positions in government, in law firms or other corporations, or in nonprofit organizations. Most government-employed lawyers worked at the local level. In the Federal Government, lawyers worked for many different agencies, but were concentrated in the Departments of Justice, Treasury, and Defense. Many salaried lawyers working outside of government were employed as house counsel by public utilities, banks, insurance companies, real-estate agencies, manufacturing firms, and other business firms and nonprofit organizations. Some also had part-time independent practices, while others worked part time as lawyers and full time in another occupation.

A relatively small number of trained attorneys work in law schools and are not included in the employment estimate for lawyers. Most are faculty members who specialize in one or more subjects; however, some serve as administrators. Others work full time in nonacademic settings and teach part time.

  • Job Outlook

About as fast as the average employment growth is projected, but job competition is expected to be keen.

Employment change. Employment of lawyers is expected to grow 13 percent during the 2008-18 decade, about as fast as the average for all occupations. Growth in the population and in the level of business activity is expected to create more legal transactions, civil disputes, and criminal cases. Job growth among lawyers also will result from increasing demand for legal services in such areas as healthcare, intellectual property, bankruptcy, corporate and security litigation, antitrust law, and environmental law. In addition, the wider availability and affordability of legal clinics should result in increased use of legal services by middle-income people. However, growth in demand for lawyers will be constrained as businesses increasingly use large accounting firms and paralegals to perform some of the same functions that lawyers do. For example, accounting firms may provide employee-benefit counseling, process documents, or handle various other services previously performed by a law firm. Also, mediation and dispute resolution are increasingly being used as alternatives to litigation.

Job growth for lawyers will continue to be concentrated in salaried jobs as businesses and all levels of government employ a growing number of staff attorneys. Most salaried positions are in urban areas where government agencies, law firms, and big corporations are concentrated. The number of self-employed lawyers is expected to grow slowly, reflecting the difficulty of establishing a profitable new practice in the face of competition from larger, established law firms. Moreover, the growing complexity of the law, which encourages specialization, along with the cost of maintaining up-to-date legal research materials, favors larger firms.

Job prospects. Competition for job openings should continue to be keen because of the large number of students graduating from law school each year. Graduates with superior academic records from highly regarded law schools will have the best job opportunities. Perhaps as a result of competition for attorney positions, lawyers are increasingly finding work in less traditional areas for which legal training is an asset, but not normally a requirement—for example, administrative, managerial, and business positions in banks, insurance firms, real estate companies, government agencies, and other organizations. Employment opportunities are expected to continue to arise in these organizations at a growing rate.

As in the past, some graduates may have to accept positions outside of their field of interest or for which they feel overqualified. Some recent law school graduates who have been unable to find permanent positions are turning to the growing number of temporary staffing firms that place attorneys in short-term jobs. This service allows companies to hire lawyers on an “as-needed” basis and permits beginning lawyers to develop practical skills.

Because of the keen competition for jobs, a law graduate’s geographic mobility and work experience are assuming greater importance. Willingness to relocate may be an advantage in getting a job, but to be licensed in another State, a lawyer may have to take an additional State bar examination. In addition, employers increasingly are seeking graduates who have advanced law degrees and experience in a specialty, such as tax, patent, or admiralty law.

Job opportunities often are adversely affected by cyclical swings in the economy. During recessions, demand declines for some discretionary legal services, such as planning estates, drafting wills, and handling real estate transactions. Also, corporations are less likely to litigate cases when declining sales and profits restrict their budgets. Some corporations and law firms will not hire new attorneys until business improves, and these establishments may even cut staff to contain costs. Several factors, however, mitigate the overall impact of recessions on lawyers; during recessions, for example, individuals and corporations face other legal problems, such as bankruptcies, foreclosures, and divorces—all requiring legal action.

For lawyers who wish to work independently, establishing a new practice will probably be easiest in small towns and expanding suburban areas. In such communities, competition from larger, established law firms is likely to be less than in big cities, and new lawyers may find it easier to establish a reputation among potential clients.

  • Projections Data

 

  • Earnings

In May 2008, the median annual wages of all wage-and-salaried lawyers were $110,590. The middle half of the occupation earned between $74,980 and $163,320. Median annual wages in the industries employing the largest numbers of lawyers in May 2008 were:

Management of companies and enterprises $145,770
Federal Executive Branch 126,080
Legal services 116,550
Local government 82,590
State government 78,540

 

Salaries of experienced attorneys vary widely according to the type, size, and location of their employer. Lawyers who own their own practices usually earn less than those who are partners in law firms. Lawyers starting their own practice may need to work part time in other occupations to supplement their income until their practice is well established.

Median salaries of lawyers 9 months after graduation from law school in 2007 varied by type of work, as indicated in table 1.

 

Most salaried lawyers are provided health and life insurance, and contributions are made to retirement plans on their behalf. Lawyers who practice independently are covered only if they arrange and pay for such benefits themselves.