Each year I look forward to the State of the Legal Market report in order to get a more granular look at the past year in legal services.
In 2022, the demand for transactional law firm services declined, most notably in Big Law. But law firms continued to hire apace. The result was a drop in productivity and profits. Profit Per Equity Partner growth was down in 2022. But PPEP is still at a healthy level compared to pre-pandemic.
That is the top line view from the new 2023 Report on the State of the Legal Market by Thomson Reuters with the Georgetown Law Center on Ethics and the Legal Profession.
The following three charts illustrate the slow down in demand and PPEP growth as well as the fact that profit per lawyer is still good compared to 1Q 2020.
This report is a one-of-a-kind. It has has 22 more charts, Including associate compensation, expenses per lawyer, lawyer turnover, collection realization, and more. If you work for a law firm, or if, like me, you provide solutions to law firms, there is certain to be data which will round out your view of 2022 and give you a picture of what 2023 may bring.
You can register for a free download of the full report here: