Is the Legal Industry Pandemic-Proof?
The COVID-19 pandemic has hit the employment market hard and, with the threat of another national lockdown looming large, it’s understandable that students will be feeling concerned. Although the prospect of legal employment seems far away, has it fared better than other industries in the tertiary sector? Or should we be considering graduate medicine?
In comparison with other sectors, the legal industry appears more buoyant. Using data from McKinsey, an international consultancy firm, it is apparent that accommodation and food services have a large proportion of jobs in relation to total jobs at risk, at 73%, whilst in the professional, scientific and technical category just 13% of jobs are at risk [1].
Within the industry itself, Magic Circle firms like Allen & Overy and Freshfields froze pay whilst many Silver Circle firms had to furlough their staff during the peak of lockdown. Reassuringly, many City law firms were able to repay the government for this borrowed furlough money, suggesting that turnover after was enough to independently retain staff.
The nature of legal practice allows the ability to work from home using video conferencing tools, such as Zoom, which works to its advantage. If another national lockdown is a possibility, the industry has shown it can adapt to meet that change. Even areas which seem opposed to remote working such as criminal law were able to function with virtual hearings. According to the Global Legal Chronicle, a survey found that ‘most lawyers wanted to continue’ working from home (WFH), and Slater & Gordon has confirmed that the practice will continue by not renewing their London lease [2].
Certain areas have fared particularly well during pandemic in managing others’ misfortunes. In the same way that there was an increase in bankruptcy filings following the 2008 financial crisis, a similar pattern could emerge post-COVID, and litigation will likely surge following the various crises that have resulted from the handling of the pandemic. Furthermore, employment lawyers are busier than ever consulting on restructuring and redundancies for their clients in the service sector. Usually this industry has the largest profit margin during the holiday season, and lawyers are having to keep abreast of new government regulations and advise their clients as the situation changes whilst also being aware that retail and hospitality are very close to going out of business [3].
The area struggling the most is the Bar, where 60% of criminal chambers furloughed staff [4], whilst it has been predicted that litigation and bankruptcy will likely fare well [5]. Newly qualified barristers are even more short-changed, as many haven’t been in employment long enough to qualify for the government’s self-employment scheme.
Although the legal industry has been affected, it has fared better than others. The WFH aspect of law may prove handy for future students, who have proved their flexibility by working remotely during this period. Although it feels frustrating being stuck in the same room, it could stand Law students in good stead for Zoom meetings and Microsoft teams consultations in their future careers.
Tera Allas, Marc Canal, and Vivian Hunt, ‘COVID-19 in the United Kingdom: Assessing jobs at risk and the impact on people and places’ (McKinsey & Company 2020) <https://www.mckinsey.com/industries/public-and-social-sector/our-insights/covid-19-in-the-united-kingdom-assessing-jobs-at-risk-and-the-impact-on-people-and-places > accessed 9 November 2020
Dominic Carman, ‘Working from home long term: the new normal for lawyers?’ (Global Legal Chronicle, 21 August 2020)<https://www.globallegalchronicle.com/working-from-home-long-term-the-new-normal-for-lawyers/> accessed 9 November 2020
Adam Marwadi, ‘What the second lockdown means for employment lawyers’ (Legal Cheek, 6 November 2020) <https://www.legalcheek.com/lc-careers-posts/what-the-second-lockdown-means-for-employment-lawyers/> accessed 9 November 2020
Jane Croft, ‘Criminal barristers warn profession is on “knife edge” as virus takes toll’ (Financial Times, 8 April 2020) <https://www.ft.com/content/c67bcf50-33c3-47ba-a154-7aa41bc323c7> accessed 9 November 2020