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NALP Employment Data

August 2nd, 2018 / By

The National Association for Law Placement (NALP) has just released data about employment outcomes for the Class of 2017. More than two-thirds of graduates (68.8%) found full-time, long-term jobs requiring bar admission. According to NALP’s figures, that’s “higher than the rate measured before the recession.” The boost in employment outcomes, however, rests largely on the decline in JD class sizes. Between 2013 and 2017, the graduating class size fell by more than 25%.

Employment outcomes thus offer a mixed picture. On the one hand, as NALP’s Executive Director James Leipold writes, “we are closer than at any time since the recession to having the number of law school graduates more closely match the number and kind of jobs available.” Graduates are also obtaining more of the lawyering jobs they prefer; as Leipold notes, the percentage of graduates taking JD Advantage jobs has fallen, “suggest[ing] that despite the growth of new JD Advantage opportunities in areas like compliance, many law graduates prefer bar passage required jobs if they can be found.”

On the other hand, as Leipold also stresses, these positive employment outcomes rest on “a smaller [graduating] class and not more jobs.” Indeed, the Class of 2017 “secured fewer private practice jobs than any class since 1996.” The “unemployment rate ten months after graduation still remains much higher than it should be” and “the actual number of jobs obtained was flat or went down in virtually every sector.” (more…)

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Now They Just Need Jobs

July 31st, 2018 / By

Legal education is regaining some of its luster: The National Law Journal reports that applications for this year’s entering class increased 8% over last year. The news for next year is even better: LSAT-takers increased 30% this summer compared to last year. But observers, including LSAC’s president Kellye Testy, urge caution. The entry-level job market remains relatively flat, with fewer 2017 graduates finding long-term, full-time positions requiring bar admission in 2017 (23,114) than in 2011 (24,149). Those employment levels don’t accommodate our current, reduced class sizes–much less an expanded class.

Integrating employment data with admissions is a tricky business, as I and several others note in a recent ABA Journal article. On the one hand, it is worrisome for schools to charge tuition to students who are unlikely to find jobs that will fully use their expensive degrees. On the other hand, limiting admissions to reduce the supply of lawyers can raise prices for consumers (although lawyers, unfortunately, are not known for their competitive, cost-saving innovations).

However your school strikes this balance, this is a good time to consider how we can improve employment prospects for current and future students. Here are my top five ideas. Some may help expand the market for entry-level lawyers. Others could give your students an employment edge over those from other schools. (more…)

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Daniel Cameron Merritt

June 14th, 2018 / By

My beloved son Daniel died in January from complications of pure autonomic failure, a rare neurodegenerative disease. Dan suffered from his illness for more than a decade; he fought his pain and disability with a lively mind and love of other people. Dan was particularly interested in legal education and the legal profession–he often contributed ideas to this blog and corrected my mistakes before I posted.

Daniel also coauthored three articles with me. He was a genuine contributor to each of those pieces. In fact, after we published the first one, my father (a law professor) called me to say, “this is the best article you’ve ever written!” Clearly Dan’s influence had an impact.

In Daniel’s honor, here are recaps of the three articles we wrote together. I treasure the memories of writing them, as well as the ideas we proposed. (more…)

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Professional Skills

May 2nd, 2018 / By

Robert Kuehn has written a thoughtful review of the history of professional skills education in legal education. As Bob notes, the ABA has been notably reluctant to require law schools to educate students on the skills they will use in law practice. Our accrediting body did not require any instruction in professional skills until 2005 and, even then, the accreditors required only “one solid credit” of that training. More recently, the ABA mandated six credits of experiential work for every law student–a total that still seems grudging for skills that lawyers use heavily in practice.

Students and some law schools have been more foresighted. As Bob documents, one-fifth of law schools now require all students to complete a clinic or externship; ninety percent have enough clinic or externship spots to accommodate all of their students. Students, meanwhile, show increasing interest in learning professional skills: enrollments in clinics, externships, and simulation courses have all climbed during the last decade.

This is a good news/bad news report. Student demand for professional training has increased, schools have shown an ability to meet that demand, and the ABA has finally imposed a meaningful requirement for experiential education. At the same time, tenure-track faculty continue to distance themselves from these educational experiences and the six-credit requirement is unrealistically light for students who will build their professional success on their skills.

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Lawyering Jobs

November 21st, 2017 / By

I’ve written before about the Bureau of Labor Statistics’ Employment Projections program. Every other year, the statisticians associated with that program count the number of existing “lawyer” jobs as part of their work. This count is especially useful because it includes both salaried and self employed workers. The biennial counts thus include solo practitioners, law firm partners, and practicing lawyers who earn a salary from any source.

The counts offer an excellent opportunity to track the growth of lawyering jobs. Here are the number of “lawyer” jobs reported in selected years since 1978, when the program began:

  • 1978:   380,000
  • 1988:   582,000
  • 1998:   681,000
  • 2008:  759,200
  • 2010:  728,200
  • 2012:  759,800
  • 2014:  778,700

As I’ve written before, those figures show that the number of jobs for lawyers is still growing–but the pace of growth has slowed considerably. Between 2012 and 2014, the number of lawyering jobs increased by just 9,450 positions per year.

The Bureau of Labor Statistics recently released the figures for 2016, and the news is sobering. In 2016, the Bureau counted just 792,500 “lawyer” jobs in the economy. That’s an increase of only 13,800 positions since 2014–or just 6,900 positions per year. That’s better than the anemic growth between 2008 and 2014 (which included periods of job loss), but worse than growth in most other two-year periods.

These figures, unfortunately, coincide with ones released by the ABA for recent graduates. Since 2013, the number of “lawyer” jobs for new JDs has fallen each year, from 26,653 for the Class of 2013 to 22,930 for the Class of 2016. (Figures for the Class of 2017 won’t be available until next spring.) Graduating classes have been smaller, so the percentage of employed graduates has improved somewhat–but the number of jobs found by those graduates has declined.

To me, the BLS projections underscore the wisdom of creating programs that allow college graduates to perform some aspects of law practice. There is plenty of demand for legal services–just not at the price demanded by fully licensed JDs. Rather than continue producing JDs at rates the job market can’t absorb, schools would be wise to consider alternative programs.

These figures also counsel caution about recent upticks in LSAT takers. More students may be considering law school, but schools need to remain wary about the employment market. If we admit more students, will employment rates fall again?

* Note: The BLS statistics for “lawyer” jobs report only positions listed under that category. Some BLS tables also report small numbers of judges and law clerks, but I have eliminated those categories for simplicity.

 

 

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Council, Please Shape Up

August 6th, 2017 / By

The Council of the ABA Section of Legal Education and Admissions to the Bar has weathered significant criticism over the last few years. Some of that criticism has been well founded; other attacks have been unfair. But now the Council is acting as its own worst enemy–pursuing a course that has already provoked significant criticism in the legal academy and probably will attract negative attention in the press.

As Jerry Organ explains in a detailed column, the Council voted in June to make several changes in the form used to report law school employment outcomes. The Council acted without any public notice, without following its usual processes, and without gathering input from anyone outside the Council. The lack of process is especially disturbing given: (a) some of the changes had previously provoked vigorous debate; (b) the Council had previously rejected some of the proposals in light of that debate; and (c) the Council–along with legal education more generally–has been accused of lacking transparency.

I am sure, as Council Chair Gregory Murphy has written, that the Council acted in good faith–believing that the changes would receive “universal, or near universal, acclamation.” But that’s the problem with disregarding process and input: a small group of decision makers can persuade themselves that they know best. This case is a good illustration of how even highly educated, well intentioned groups can fall prey to that fallacy.

(more…)

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Trends in Law Firm Staffing

May 28th, 2017 / By

Altman Weil has released its annual report on “Law Firms in Transition.” The report, based on a survey of managing partners of law firms with at least 50 lawyers, documents continued change in the way law firms staff their matters.

More than half of these law firms now use contract lawyers (57.1%) or part-time lawyers (52.7%). Almost half (41.8%) employ staff attorneys. Larger firms (those with at least 250 lawyers) are more likely than smaller firms to use these staffing strategies. Indeed, about three quarters of those larger firms use contract lawyers (77.0%), part-time lawyers (71.3%) or staff attorneys (78.2%). The numbers, however, are still significant at firms with 50-249 lawyers–especially for contract lawyers. More than half (50.4%) of the mid-sized firms use those lawyers.

Law firms have adopted these strategies because they increase profitability. Sixty-nine percent of the surveyed leaders indicated that “shifting work to contract/temporary lawyers” has resulted in a “significant improvement” in that metric. Almost half (49.5%) thought that “shifting work from lawyers to paraprofessionals” had the same salutary effect.

Law firms have also started to push the next frontier in staffing client matters: by using artificial intelligence (like IBM’s Watson) for some analyses. More than a third of law firms (36.3%) have started using those tools or “have begun to explore” those opportunities.

These results are not surprising to anyone who has followed law firm trends since the Great Recession. They underline, however, firms’ enthusiasm for these new staffing models.

H/t to TaxProf for noting the availability of Altman Weil’s report.

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LST Reports Updated

May 11th, 2017 / By

As Debby pointed out, the ABA just released the latest employment statistics. Each school’s report is on the ABA website and their own website, but it’s not easy to compare schools in a giant spreadsheet, either with each other or year over year. I just updated the LST Reports with all the new data. These comparisons are easy using our tools.

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2016 Employment Outcomes

May 11th, 2017 / By

The ABA has posted its report on employment outcomes for the Class of 2016, along with two school-by-school spreadsheets. One of the spreadsheets tracks law school funded jobs that require bar passage; the other details other employment outcomes. My initial take-aways are:

  • Nationwide, the size of the graduating class fell 7.15%.
  • That decline allowed schools to register a slight increase in the percentage of graduates employed in the key category of full-time, long-term jobs requiring bar admission. That percentage rose from 59.2% to 61.8%.
  • The number of graduates employed in those job categories, however, fell from 23,687 for the Class of 2015 to 22,930 for the Class of 2016. That decline (3.1%) continues a trend noted last year, although the decline is smaller this year.
  • The number of students taking part-time JD Advantage jobs rose markedly–by 16.3% in the long-term category and 72.8% in the short-term one. The overall numbers are small compared to other job categories, but the jumps are noticeable.
  • The percentage of graduates known to be unemployed and seeking jobs declined from 9.7% to 8.8%. Those figures, however, must be read in connection with an increase in the percentage of graduates for whom employment status was unknown. If we assume that just a third of the latter graduates were unemployed and seeking work (a conservative estimate), then 10.04% of the Class of 2016 was still unemployed and seeking work ten months after graduation.

Overall, the report suggests continued weakness in the entry-level job market for law graduates. The decline in the absolute number of graduates holding full-time, long-term jobs requiring bar admission is worrisome–especially since we take that measure a full 10 months after graduation. Even more troubling is the fact that 10% of the nation’s law graduates are unemployed and seeking work a full ten months after graduation.

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Jobs and Salaries for New Lawyers

April 30th, 2017 / By

What does the job market look like for new lawyers? The ABA will soon release statistics about the Class of 2016, and NALP will add additional information by the end of the summer. But the Bureau of Labor Statistics (BLS) gives us an advance peak.

Each year, BLS reports job numbers and salaries for a wide range of occupations. This series of reports includes only salaried positions; for the legal profession, the series omits both solo practitioners and equity partners in law firms. Still, since most new graduates seek salaried positions, these numbers offer a useful measure of the profession’s ability to absorb and pay new members.

(more…)

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ABA Journal Blawg 100 HonoreeLaw School Cafe is a resource for anyone interested in changes in legal education and the legal profession.

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