Recession and Employment

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HopefulSplitter0000

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Recession and Employment

Post by HopefulSplitter0000 » Sun Nov 03, 2019 10:17 pm

The 2008 economic collapse resulted in firms rescinding employment offers and cutting associates, but many think that is because firms were caught unprepared.

What do you guys think will happen to legal employment in our next recession? Are law firms better prepared? Will summer associates have offers rescinded?

64Fl

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Re: Recession and Employment

Post by 64Fl » Mon Nov 04, 2019 12:38 am

If you don't have an SA/firm job: Stop reading tea leaves. Mass mail.

If you do: You can't prepare. Just see what happens.

SFSpartan

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Re: Recession and Employment

Post by SFSpartan » Mon Nov 04, 2019 12:53 am

Nobody really knows what will happen in the next recession. Any thoughts on what will happen in the next recession are really nothing more than pure speculation. Don't worry about whether/if there will be a recession and focus on what you can control.

Tyler_Durden

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Re: Recession and Employment

Post by Tyler_Durden » Mon Nov 04, 2019 12:02 pm

If your salary costs more to the firm than they project that they will make on your work (3x), taking into account a slowdown in work caused by a recession, then your offer may be rescinded or you may be terminated.

Anonymous User
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Re: Recession and Employment

Post by Anonymous User » Mon Nov 04, 2019 12:19 pm

My firm has cut the summer class from 60 to 20, and will probably let go of a bunch of stub+1 years in January. Perversely, it's been on a hiring spree w/r/t partners, both service and equity.

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Anonymous User
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Re: Recession and Employment

Post by Anonymous User » Mon Nov 04, 2019 12:48 pm

Anonymous User wrote:My firm has cut the summer class from 60 to 20, and will probably let go of a bunch of stub+1 years in January. Perversely, it's been on a hiring spree w/r/t partners, both service and equity.
This sounds similar to what's happening at my firm. Would your firm happen to be synonymous with layoffs?

barkschool

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Re: Recession and Employment

Post by barkschool » Mon Nov 04, 2019 1:04 pm

Anonymous User wrote:My firm has cut the summer class from 60 to 20, and will probably let go of a bunch of stub+1 years in January. Perversely, it's been on a hiring spree w/r/t partners, both service and equity.
This year?

Am law 100?

objctnyrhnr

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Re: Recession and Employment

Post by objctnyrhnr » Mon Nov 04, 2019 2:42 pm

As an associate when they hire a bunch of partners, you’re torn.

On the one hand, you’re buried due to influx in business, have way too many hours, and don’t feel yourself doing your best work due to the pressure. You know there’s plenty of work for more associates (and if they grow relationship partners, you know they’re at least thinking about hiring associates).

On the other hand, you know that if they hire more associates it’s much riskier for this impending downturn everybody is talking about. Leaner is better in tough times.

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LSATWiz.com

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Re: Recession and Employment

Post by LSATWiz.com » Mon Nov 04, 2019 9:57 pm

This recession will not be as bad as that recession. In addition to a natural cyclical recession, there were issues that were 25-30 years in the making like the mortgage crisis that was always going to blow up at some point. I think the answer is to expect something in between c/o 2019 and c/o 2009.

People with unique skills will always be valued but those starting out who are fungible are obviously at a disadvantage. I'd imagine the long term consequences with increasing tuitions and the likelihood of a second recession will probably result in less scholarship money being available in subsequent generations.

Part of the reason it's so easy to get full rides at many schools is that the baby boomer generation was donating a lot of money, but higher tuitions mean that fewer students have as much money to donate, which combined with these recessions is ultimately going to result in less scholarship funds being made available. Even if you love your law school, you may have a child with a certain disease or be moved by a certain cause so many alumni donors give most of their charity to something other than their law school. Less disposable income because of loan repayments may result in many students foregoing donating to their law schools entirely. Further, those paying close to sticker may feel they have paid their law school enough notwithstanding how much income they make. Long term, my guess is that for profit law schools will ultimately fall by the wayside and the medians of non-tier 1 schools will probably drop substantially.

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