According to recent data released by the U.S. Bureau of Labor Statistics, the legal services sector in the United States experienced a loss of 1,200 jobs in July. This decline comes as several large U.S. law firms have been implementing scattered layoffs throughout the week due to reduced demand.
In July, the total number of jobs in the legal sector was recorded at 1,182,500 after adjusting for seasonal fluctuations. This figure encompasses various legal professionals, including lawyers, paralegals, and assistants, with the majority being lawyers.
The report also revised the initial projection for legal sector employment in June, lowering the number from 1,185,100 jobs to 1,183,700 jobs. It had previously been nearing a historic high that was reached last summer.
In the wake of reduced demand, two prominent law firms, Katten Muchin Rosenman and Armstrong Teasdale, confirmed that they have been laying off lawyers and professional staff. Katten, which has approximately 700 lawyers, stated that they let go of less than 5% of their lawyers and staff. Meanwhile, Armstrong Teasdale, with 800 lawyers, announced layoffs affecting about 3% of their lawyers and 6% of their staff.
These recent layoffs at Katten Muchin Rosenman and Armstrong Teasdale are part of a broader trend that has been witnessed at more than a dozen other large law firms since November. The legal industry continues to face challenges and adjustments as it adapts to changing market conditions.
The broader U.S. economy maintained a moderate pace of job growth in July, but solid wage gains and a decline in the unemployment rate pointed to continued tightness in labor market conditions.