Are Law Firms Hiring for a Potential Recession by Adding Bankruptcy Attorneys?

Many economists are still predicting a soft landing for the U.S. economy, but recent indicators such as a sluggish labor market and consumer spending have some investors fearing a recession. The possibility of an economic downturn does not appear to be lost on law firms, as recent data from Firm Prospects indicates a notable rise in both the recruitment of, and job postings for, bankruptcy attorneys.

Increased Hiring of Bankruptcy Attorneys

Since May 1, 2024, law firms tracked by Firm Prospects have hired 175 bankruptcy attorneys. This represents an increase of 12.1% and 18.24% as compared to the same period in 2023 and 2022, respectively. This year-over-year growth in hiring suggests that law firms are seeking to bolster their bankruptcy departments in anticipation of a potential economic downturn and the uptick in bankruptcies that could result.

chart comparing bankruptcy attorney hires between 2022 - 2024 — *_{Compared to the previous two summers, bankruptcy attorney hiring has seen an increase.}*

Leading this hiring surge is Paul Hastings, which added 14 bankruptcy attorneys over the summer, including a large group that came over from King & Spalding in June. Another notable example is Raines Feldman, a firm of just over 100 attorneys headquartered in Los Angeles, which brought on 11 bankruptcy attorneys, most of whom joined as part of the firm’s expansion into the Pittsburgh market.

Total Bankruptcy Attorney hires for summer 2024

Surge in Job Postings for Bankruptcy Attorneys

In addition to the rise in hires, there has been a noticeable increase in the number of new job listings for bankruptcy attorneys, too. Between May 1 and August 31, 2024, law firms posted 60 new bankruptcy attorney positions. This marks a significant jump from the 46 new listings posted during the same period in 2023. New York City saw the most new listings for bankruptcy attorneys during this period with 24, followed by Chicago with 9.

united states map showing bankruptcy attorney hires — *_{Bankruptcy attorney hiring is picking up in cities across the United States.}*

Preparing for Economic Uncertainty

The recent hiring and job posting trends in bankruptcy law, seen by Firm Prospects, suggest that firms are taking proactive steps to ensure they are well-staffed to handle an expected increase in bankruptcy filings. By adding more bankruptcy attorneys to their teams, law firms are positioning themselves to meet the demand for legal services that typically surges during economic downturns.

As noted above, this strategic hiring could be a response to various economic indicators pointing towards a possible recession, most recently the July jobs report that resulted in a dramatic drop in stocks (even though all of the losses from that day have since recovered), and other macroeconomic factors. Law firms, known for their ability to read the economic tea leaves, seem to be preparing for a wave of bankruptcies that often accompanies financial hardship.

Understanding these hiring trends offers valuable insights into how the legal market is responding to broader economic conditions. For firms and attorneys alike, being informed and prepared can make all the difference in navigating a potentially challenging economic landscape.

How to Prepare for the Shift: Leverage Firm Prospects for Strategic Hiring

With an increase in demand for bankruptcy attorneys, finding new talent to ensure your law firm can meet a possible rise in demand for legal services during a recession will become increasingly more competitive. Here’s how Firm Prospects can help:

Find Top Bankruptcy Attorneys:

Utilize Firm Prospects’ comprehensive database to identify and recruit experienced bankruptcy attorneys who can immediately contribute to your team. With detailed candidate profiles, you can filter by practice areas, schools attended, and specific deals or matters worked on, ensuring you find the right fit for your firm.

firm prospects attorney profiles — _{Firm Prospects attorney profiles identify candidates quickly and easily.}

● Find Bankruptcy Attorneys with “Connections” to your Firm

Firm Prospects uses various algorithms and artificial intelligence to connect attorneys at your firm to other attorneys based on education, prior employment, and even deals and matters worked. Law firms can leverage these connections to see who in their firm might know potential candidates for open bankruptcy roles.

● Leverage Market Intelligence

Stay ahead of the curve by leveraging Firm Prospects’ market-leading analytics. By understanding current trends and anticipating shifts in the legal job market, your firm can make informed decisions that enhance both recruitment and business development efforts.

firm prospects data charts — _{Firm Prospects’ data helps better understand trends in legal hiring.}

Conclusion

In the face of economic uncertainty, law firms are wisely investing in their bankruptcy practices, anticipating increased demand for these services in a potential recession. The data from Firm Prospects underscores the importance of strategic hiring and preparation. By leveraging platforms like Firm Prospects, law firms can position themselves for success, ensuring they have the right talent in place to navigate whatever challenges the economy may bring.

Ready to bolster your bankruptcy team? Schedule a demo to explore our platform and start finding the attorneys you need today.