The Legal profession and industry are constantly evolving. Increased tech adoption is changing the skills required for jobs. Regulatory changes around the world are changing the day-to-day tasks of lawyers. Recessions and economic changes are impacting the jobs in the market. Automation is taking some tasks from the lawyer's plate and affecting the demand for lawyers now. If you are jumping into the legal job market now, this post will help you find the most in-demand legal practice areas and what trends are shaping up the industry in 2025.
Lawyer job outlook
Lawyers rank 1st in best social services jobs, 14th in best-paying jobs, and 17th in 100 best jobs in 2024 US rankings. Law remains an exciting and impactful profession in the job market. The below data shows how:
Increase in job openings
Lawyer openings will have the second-largest increase in positions requiring a graduate or professional degree. There will be an increase of 62,400 job openings for lawyer positions from 2022 to 2032.
Less unemployment
Out of 30,160 new graduates from the class of 2023, 85.6% quickly got employed full-time. When a similar study was done for the class of 2022, the number was 84.6%. The unemployment rate for new lawyers is slowly dropping, making it a promising field.
Median salary is above average salary in the US
According to the US Bureau of Labor Statistics, the average US annual salary is $65,470. But lawyers have a median annual wage of $145,760. The least a lawyer made was somewhere less than $69,760, and lawyers at the top of their game made even more than $239,200.
7 High-demand legal practice areas
We analyzed the following industry reports on legal market and hiring trends:
- Robert Half's legal salaries and hiring trends
- Thomson Reuters Institute's 2024 Report on the State of the US Legal Market
- Axiom's GCs' 2024 outlook on legal budgets, talent, and innovation.
The following practice areas are where currently most lawyers provide legal services:
1. Regulatory and compliance law
Regulatory and compliance is an important practice area that ensures companies are compliant with laws and regulations. Any slip in this domain directly attracts fines and a bad reputation, so lawyers specializing in this area are regularly in demand in the job market.
2. Ethics and corporate governance
Ethics and corporate governance are legal practice areas that ensure companies operate transparently and benefit shareholders, employees, customers, and the community. It also makes sure that companies are aware of the long-term impact of their operations on society and the environment. Ethics and corporate governance are essential components of managing a company. As a result, there is a great need for lawyers with expertise in these fields.
3. Litigation
Litigation lawyers represent people in civil lawsuits in courts or before government agencies. They advise clients throughout legal proceedings, from pre-action to filing, trials, and appeals. Common litigations include contract breaches, ownership disputes, and discrimination. It’s a popular practice area as people seek good litigation lawyers to represent them and win the case.
4. Labor and employment law
Labor and employment law is a broad legal practice area monitoring the rights and responsibilities of employers and workers. It covers pay, work hours, hiring, leaves, benefits, discrimination, and workplace safety. To the advantage of workers, governments are constantly revising labor laws. Businesses require the assistance of labor and employment attorneys to build workplaces/policies that comply with the most recent standards.
5. Intellectual property
Intellectual property (IP) law is another popular legal practice area protecting intangible assets such as patents, copyrights, trademarks, or any trade secrets. Businesses often run on these IPs with a direct impact on revenue, so specializing in this area is a good highlight on your resume.
6. Data privacy and cybersecurity
Data privacy and cybersecurity are specialized legal practice areas that establish guidelines for data use and access. Governments around the world have their own data protection regulations, which increases the demand for data privacy and cybersecurity lawyers to ensure that businesses comply with these regulations.
Additionally, with the increased risk of data breaches day by day, businesses need comprehensive contracts that prevent unauthorized data access or usage. Data privacy and cybersecurity lawyers keep up with changing policies and look internally to flag risk. They keep evolving policies to avoid any breaches or mishaps that could directly impact business.
7. Technology
Technology law is another niche legal practice area where you specialize in a specific tech such as AI, cloud, blockchain, social media, and more. With knowledge in a specific area, you can consult companies in product development, licensing, handling social media, and more. In these evolving technologies, more and more customer data is involved, increasing risks. So, having lawyers who understand how the technology works minimizes business risks and speeds up the company's legal operations.
7 emerging trends that affect legal jobs and ways of working
Below are trends that will shape the legal world in 2025:
1. Legal tech adoption is on the rise
66% of legal leaders report plans to accelerate their investments in legal technology to manage workloads amid budget limitations. Legal tech is fully changing the way lawyers operate in their day-to-day operations. Everything is moving from pen and paper to digital tasks, dashboards, and automation. Technology is the new legal assistant. Now, lawyers are expected to be comfortable with tech.
Sue So, Head of Legal Hopin, stressed on the importance of technology for today's lawyers and said, "It's good for a SaaS lawyer to be tech-savvy because it helps to know what tools are at your disposal and how to use them best. Go to the people who know how to use these tools well and ask them if it's possible to set up the workflows/automations you want within them."
Still, legal tech is not included enough in the study curriculum of law school. The Spring 2023 Law School Preparedness survey shows that only 7% and 8% of students in their second and third years, respectively, enrolled in a legal tech course. Knowledge of any legal platform will be a positive addition to your resume.
2. Generative AI is speeding up reviews
The legal division is not untouched by AI automation. One common use case is AI-powered contract reviews, where AI generates quick summaries of contracts to fasten reviews. Even if organizations don't implement AI internally, there are public tools available to generate such summaries. However, organizations are adopting legal tools with AI features internally to avoid the usage of such public tools.
Ken Priore, Director of Privacy at Atlassian, says, "Most organizations are realizing that they should have a policy in place for AI adoption, because, otherwise, there's a risk of customer data or confidential data being put into the public tooling."
Apart from legal tech, understanding AI and its use cases will also help you keep up with trends.
3. Lawyers are facing new risks and business challenges
The business environment is evolving, creating new risks that would require legal support. Gartner found the following new risks and legal challenges are increasing legal demand:
- Third-party viability
- AI risk
- Cybersecurity
- Cloud concentration
- Corporate Sustainability Reporting Directive
- Geopolitical risk
- Changing Antitrust Enforcement
- Personal Data Regulatory Fragmentation.
4. Hybrid working is the current norm
Law firms are moving away from a complete in-office setup. 83% of law firms have an established hybrid working schedule. To remain competitive in the market, legal professionals must now feel at ease working both remotely and in-office.
5. Client wants lawyers who understand business
Businesses now expect lawyers to also understand the business side of things, not just legal matters. Doug Luftman, who served as VP & Deputy General Counsel (DGC) and Chief Privacy Officer at DocuSign, spoke to us about the reason behind this expectation. He says:
“Legal has the ability to see horizontally and cross-functionally across the whole organization. Because of that, you can see where things are working really well and where there's opportunities for further enhancements. I think there are opportunities for lawyers to step up to the occasion when they see something that isn't working well. Especially as you want to be perceived more as an executive leader.”
~ Doug Luftman, ex-DGC, DocuSign
Lawyers can identify potential risks beforehand and give advice that helps businesses meet their goals.
6. Data literacy is crucial for lawyers
Another important development in the lawyer world is now they are also expected to draw meaningful insights from data, such as:
- Which conflicts are happening the most
- Where is negotiation taking the most time
- What are the risk-prone areas
- Where are the most common compliance gaps?
And they can't always do this manually. As business scales, many tasks would be automated for efficiency. Lawyers are now expected to be able to use tools to analyze legal documents and draw insights from the data.
7. Data privacy training is important
Governments of many countries are increasingly refining privacy rules to safeguard data. The legal team has to be at the top of these updates to protect sensitive client information. Further, increased cybersecurity threats are not making the task any easier.
Companies are now training employees on cybersecurity best practices so they are aware of potential threats and identify how to mitigate them. It would be good for you to understand cybersecurity and how to use legal tech to prevent data leaks.
“With increasing threats in the digital realm, LegalTech – if set up accordingly – may play a pivotal role in safeguarding sensitive client information. In any case, confidential information and the focus on security will be paramount.”
~ Friederike WildeDetmering, Senior Associate at Reed Smith LLP
Tips for a successful lawyer career
1. Specialize in a high-demand practice area
The first and most effective tip for a blooming lawyer career is to specialize in an area with ample market demand so limited opportunities do not tie you. With abundant opportunities available, you also can increase your earning potential and choose organizations where your values and expectations align.
2. Keep up with changing technology trends
Legal tech is a growing market, and it’s only going to grow. Being comfortable with tech would be a good addition to your profile and help you catch up quickly on the new ways of working.
3. Network with other lawyers and potential clients
Networking within the industry helps you stay updated with trends, build relationships, and get guidance or referrals. Also, being in front of prospects puts you at the top of their list when they need legal support.
4. Improve your communication skills
As a lawyer, it's also important to have excellent communication skills to negotiate effectively, explain expectations/terms better, build a good rapport with clients, and represent clients. Further, you are often cross-collaborating as a lawyer, and excellent communication skill is one good tool in your toolkit.
Also read: Alternative Legal Careers for Lawyers: 20 Realistic Ideas
Stay ahead of the curve with Counsel Corner
All the best with your job hunt! If you want to stay updated with what's new and hot in the legal world, visit SpotDraft’s Counsel Corner. Here, we interview industry experts and bring out the interesting conversations that need to be at the forefront. Check Counsel Corner now.
Lawyer Job Outlook FAQs
1. What's the required education for a lawyer?
Yes, some jurisdictions allow alternative options like apprenticeships. But in most states, you are required to take the law school admission test and finish the law school application process and the entire program to become a lawyer.
2. Is it worth it to become a lawyer?
Yes, lawyers have huge demand, expecting the second-largest increase in positions requiring a graduate or professional degree. Further, a lawyer's median salary is above average in the US, making it a lucrative option.
3. Are law schools worth It?
Yes, becoming a lawyer is a lucrative career option, and law school graduation opens doors to this career. Out of 30,160 new graduates from the class of 2023, 85.6% quickly got employed full-time.
4. Which legal fields are in demand?
Currently, the most in-demand legal practice areas are regulatory and compliance law, ethics and corporate governance, litigation, labor and employment law, intellectual property, data privacy and cybersecurity, and technology.
5. What factors can affect a lawyer's job outlook?
The factors impacting lawyer jobs the most are recessions, economic changes, technological advancements, and regulatory changes around the world.
6. How can I improve my chances of finding a legal job?
The top tips that will improve your chances of finding a legal job are:
1. Specialize in a high-demand practice area.
2. Keep up with changing technology trends.
3. Network with other lawyers and potential clients.
4. Improve your communication skills.
7. What is the average salary for a lawyer?
According to the US Bureau of Labor Statistics, the average annual salary of lawyers is $145,760. The least lawyers make is somewhere less than $69,760, and some lawyers make even more than $239,200.
