Lately I’ve been attending year-end gatherings within the profession. Besides the usual war stories, what seems to be on everybody’s mind is the economic downturn. Today I’d like to share my admittedly unscientific lawyers are facing this crisis.
People typically think professionals are more resistant to economic downturns than unskilled or semi-skilled workers. However, this is true only to a certain extent. In hard times people may still go to see a doctor when they’re sick, but they’re more likely to postpone elective surgeries. It’s the same for lawyers.
During a economic downturn, lawyers who practise in real estate, mergers and acquisitions, or corporate finance are more likely to feel the strain than the rest, since people are no longer actively buying and selling assets. One of my classmates was recently laid off by his mergers and acquisitions firm in New York and was forced to returned to Toronto. Another lawyer I worked with complained that real estate closings were down 30%.
Some areas of law are more or less unaffacted by the economic downturn. For example, in-house counsels, government lawyers, and crown prosecutors generally don’t have to worry about losing their jobs because they are always needed by their employers. Rather, lawyers who work on a contractual basis with in-house counsels and the government to handle the overflow are likely to face the cut.
Interestingly, lawyers practising in certain areas may actually see their business pick up during a difficult time. For example, lawyers who practise in labour and employment law and bankruptcy and insolvency law get busier as workers are laid off and individuals run out of money.
What’s more, I’ve heard several criminal defence lawyers and family law lawyers (particularly divorce lawyers) complain about being overbooked. I suppose during financial problems drive desperate individuals into committing crimes and cause strain on personal relationships. What do you think?
