In 2023, the legal industry faced a significant downturn in summer associate recruiting, marking the most challenging year since 2012 for law students aiming for positions in Big Law. According to a revealing report by the National Association for Law Placement (NALP), offer rates to law students have plummeted, with law firms extending 19% fewer offers than in the previous year. The statistics provided by NALP, which include data from over 180 firms—most of which boast a roster of 500 or more attorneys—show a stark decrease in the number of offers extended from an average of 28 in 2022 to 22 in 2023 and a median drop from nine to seven.
This downturn is attributed to a confluence of factors, including reduced client demand and an overcapacity of talent, following a year of higher-than-normal hiring. Nikia Gray, NALP Executive Director, explained, “Firms may have growing concerns about absorbing additional new talent if client demand does not increase to keep pace and they continue to carry excess capacity through 2024.” In response to the tightened market, law students have had little room to be selective, with the overall acceptance rate for offers climbing to 47%—a record high since NALP began tracking in 1993.
The legal market’s contraction is further exacerbated by the introduction of “recruiting,” a practice where firms extend offers to law students well before the official on-campus interview programs commence. In 2023, 47% of summer associate offers were made through recruiting, a significant jump from 23% in 2022, indicating a shift in how law firms approach recruitment.
This challenging landscape comes at a time when the class of 2024 is significantly larger than its predecessor, increasing competition for a shrinking number of positions. Summer associate positions, which can lead to lucrative permanent roles with starting salaries up to $225,000, are critical for law students and are closely watched as an economic indicator of the legal industry’s health.
As the legal industry navigates these turbulent waters, the impact of these changes on future hiring trends and the broader legal market remains to be seen. Law firms and students are adjusting to a new normal, where adaptability and foresight are key to overcoming the challenges of fluctuating demand for legal services.
