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About 10,000 Lawyers Face Losing Their Jobs

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About 10,000 lawyers face losing their jobs

As many as 10,000 lawyers could be out of work in the UK in the next two years as the legal business faces its worst slump in decades.

More than one in ten of the country’s 83,000 privately employed solicitors could lose their jobs, recruiters, consultants and senior law firm partners told The Times, and will struggle to find new jobs even as the economy emerges from the recession.

The total number of jobs in the legal sector, including non-solicitors, fell by 16,700 in 2008, from 296,500 to 279,800, according to the Office for National Statistics, and the scale of losses is set to worsen this year.

The shake-up has thrown the traditionally conservative sector into turmoil, with leading firms shedding thousands of jobs, freezing salaries and telling trainees who expected to be offered permanent employment that they will not be kept on. Even partners, once regarded as secure for life, have not been spared. Industry observers said that further job losses were inevitable.

Lawyers who fall out of work have little hope of finding new jobs, with vacancies for associate solicitors down by 95 per cent this year, recruiters said. “It’s the worst year ever, by some margin,†Nick Root, founding partner of Taylor Root, a leading recruitment agency, said. “Those people who are being let go will not get another job.â€

Meanwhile, thousands of new law graduates this year will intensify the recruitment squeeze.

Britain’s commercial legal sector, which contributes more than £15 billion a year to the economy, grew at a dizzying rate in recent years, driven by mergers and acquisitions, commercial property, private equity and leveraged finance.

In 2007-08, the 100 biggest firms enjoyed record profits of more than £4 billion and hundreds of partners earned in excess of £1 million.

But the market shuddered to an abrupt halt in September after the collapse of Lehman Brothers. Profits are plummeting: in recent weeks, leading firms, such as Eversheds, Hebert Smith, Lovells and Norton Rose, reported a decline in partners’ earnings of up to a third for the 2008-09 financial year, which ended on April 30. As those results were boosted by a healthy first-half, next year’s results are likely to be bleaker still.

Not only are partners experiencing a sharp reverse in earnings, but, unlike in previous recessions, many are losing their jobs. Scores have been pushed out from the City’s biggest firms — including 47 at Allen & Overy, part of the “magic circle†— while others have been stripped of equity and forced to take a pay cut.

Discarded partners accustomed to earning more than £700,000-a-year have been shocked to find that they can command as little as £200,000 from the few firms that are hiring.

Firms are placing a greater emphasis on productivity, recruiters said, insisting that prospective hires bring with them a dependable client following. In some cases, partners have been offered commission-only deals — pay historically has been based on tenure rather than performance.

Unemployed junior lawyers are finding it even tougher, with one recruitment agency receiving about 700 applications for three entry-level vacancies. Those associates who have kept their jobs have had their salaries frozen.

UK commercial law firms remain internationally competitive and will recover, Scott Gibson, a consultant at Hughes-Castell, a recruitment agency, said.

However, they are likely to emerge from the recession leaner, with a smaller ratio of associates to partners and more aggressively managed. The notion of job security at big law firms is unlikely to endure. “No lawyer is ever going to think they’ve got a safe job again,†Mr Gibson said.

These bloody fools built the rotten system. Seems only right that they should get punted with malice from it.

However, what this is saying is that there will vastly less contracts being drawing up and formalized.

No business.

Crash on.

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Sat here in Public Sector Wales most of these job losses could be on a different planet so distanced from the recession many in Wales appear to be.

10,000 lawyers - watch them jump on plumbing courses. Speaking of which, I know so many people now retraining to be plumbers that there is a glut coming in that trade also.

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Their charges are outrageous. Does this mean they'll be some competition at last?

Too bad this doesn't happen for Dentist's. They both run unofficial cartel's.

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Their charges are outrageous. Does this mean they'll be some competition at last?

Too bad this doesn't happen for Dentist's. They both run unofficial cartel's.

There's quite a few professions like that in the UK.

I mean, you can go and buy half a dozen IT books, read them and call yourself a 50 or even 100K a year IT Consultant... but you try and set yourself up as a lawyer and... I am not sure where this rant is going...

:unsure:

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There's quite a few professions like that in the UK.

I mean, you can go and buy half a dozen IT books, read them and call yourself a 50 or even 100K a year IT Consultant... but you try and set yourself up as a lawyer and... I am not sure where this rant is going...

:unsure:

Or you can go buy yourself some nice S&M gear and become a highly paid dominatrix/master...

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Their charges are outrageous. Does this mean they'll be some competition at last?

Too bad this doesn't happen for Dentist's. They both run unofficial cartel's.

I reckon that most of the lawyers cartel could be broken quite easily.

What the government need to do is to have a set of lawyers or even judges, and require them to spend a short time listening to people who think that they need to go to court. They shouldnt give the punters and legal advice, but just tell them what forms to fill out, and tell them what they have to show in terms of evidence to be able to win their cases.

It is all pretty straightforward really, if you know what law you need and which forms you have to complete, and what you need to show to prove you case under that law.

The lawyers of course wont tell you what to do, as that is their livelihoods. It would be easy enough to change.

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Their charges are outrageous. Does this mean they'll be some competition at last?

Too bad this doesn't happen for Dentist's. They both run unofficial cartel's.

#

The BMA , Law Society etc , etc ...

Their all the same - Middle-class Trade Unions used to been pampered and their cartels receiving approval from across the Political spectrum/media to an extent that would be unthinkable for their working-class equivalents .

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#

The BMA , Law Society etc , etc ...

Their all the same - Middle-class Trade Unions used to been pampered and their cartels receiving approval from across the Political spectrum/media to an extent that would be unthinkable for their working-class equivalents .

Why can only barristers become judges? Not right in a so-called democracy. We should be more like the US where judges stand for election in some states. Ah, then the status quo would not be kept, then we would not be kept in our place and there would be no well paid jobs and pensions for barristers... other than parliament...

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There's quite a few professions like that in the UK.

I doubt there's any as institutionally corrupt as lawyers.

I mean, you can go and buy half a dozen IT books, read them and call yourself a 50 or even 100K a year IT Consultant... but you try and set yourself up as a lawyer and... I am not sure where this rant is going...

I doubt you'll see a £100k IT job outside the financial sector - and look what's happened to that :unsure: . And if you look at IT job ads, 50k is rare[1]. You're more likely to make it as a total turnover (from which you have to subtract all business costs) than as a permie.

But nevertheless, you have a valid point there. IT recruitment in the UK is dominated to a frightening extent by meaningless buzzword-driven box-ticking.

I guess I should declare an interest: I'm in IT. But it's over a decade since I had the misfortune to be employed by a UK company other than my own.

[1] Less rare in "suit" jobs - management or marketing - than in IT. That's a similar syndrome to requiring, for example, teachers to become managers in order to "progress".

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if this is true, it would be interesting to see some statistics on the outcome, ie, 10000 before and afters, occupation from to, salery from to, house value from to.

of course im loling, lol, but i suspect most of them will land on their feet and get comfy places at the expence of the less well qualified, ie, office work.

i do know that taxi cab driving is a big second career for many hasbeens.

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Why can only barristers become judges? Not right in a so-called democracy. We should be more like the US where judges stand for election in some states. Ah, then the status quo would not be kept, then we would not be kept in our place and there would be no well paid jobs and pensions for barristers... other than parliament...

Solicitors can also become judges.

It is a very good thing that judges should are required to be people who have experience working in the law as barristers or solicitors (unlike on the continent). If there is to be a rule of law, judges need to know its basic principles well.

It is not at all a good thing that trial by jury has been slowly phased out. This kept a check on the power of judges (and parliament). It contributed to Britain being able to function without a written constitution.

Being a lawyer is not an easy or pleasant job and for that reason prices of legal services will remain high. I doubt that 10,000 unemployed lawyers will cause prices to come down significantly.

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About 10,000 lawyers face losing their jobs

These bloody fools built the rotten system. Seems only right that they should get punted with malice from it.

However, what this is saying is that there will vastly less contracts being drawing up and formalized.

No business.

Crash on.

I was discussing similar with a friend who is partner at an accountancy firm, same story there. Should have impact on HPC on expensive London houses.

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About 10,000 lawyers face losing their jobs

These bloody fools built the rotten system. Seems only right that they should get punted with malice from it.

However, what this is saying is that there will vastly less contracts being drawing up and formalized.

No business.

Crash on.

I have to admit I find this entertaining. I've stepped out 5 junior female lawyers and found them to be the greediest, devious, money grabbing uses I've ever met.

That sounds bitter and twisted - but its true.

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Is London Shrinking? If so, property will get hammered

Please record evidence here: Anecdotals

====================================

Sure. And it might ONLY BE THE BEGINNING - IS LONDON SHRINKING ??

Following is from the thread, Sustaining Oneself Financially, on HPC's Main board

I am going to start a thread here on this -

Is there evidence of London shrinking ???

Its 2000 years old- "Londinium" wont shrink over the long term.

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Neither will Detroit (they said):

"It occupies a critical and strategic transport point"

Detriot is a one trick pony. Every car manufacter thats started up shop has opened up plants ANYWHERE but Detroit. Why? Because unions have killed it. Whats so critical about Detroit? Chicago or any other large city could fill those shoes. Its not a port.

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Their charges are outrageous. Does this mean they'll be some competition at last?

Too bad this doesn't happen for Dentist's. They both run unofficial cartel's.

Are you a grocer, by any chance?

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i'm a lawyer. i'm on a 4 day week and pay freeze. some of the posters on here deserve a damn good slapping. why do so many people on here hold so many stereotypical views? i'm from a fairly poor working class family of 7 (mum, dad 5 children) and I spent 4 years doing a law degree then 2 years out to get some money to pay the fees for the 1 year diploma, then i spent 2 years training earning around £11k per annum. I'm now almost 4 years qualified and i've still got about 2 years worth of debt left to repay.

i work very hard for my clients and charge what I think is a reasonable rate. If people think becoming a lawyer is easy then go and f**king do it - it'll only take you around 5-7 years and around £30k of debt to qualify. you will need at least 4 higher grade passes or A levels at A grade to actually get in to the course though - not sure the thick b*stards on here could manage that.

as for lawyers being a cartel what a load of absolute sh*t. law firms (mine included) aggressively compete with each other for clients and costs have now been cut to the bone.

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i'm a lawyer. i'm on a 4 day week and pay freeze. some of the posters on here deserve a damn good slapping. why do so many people on here hold so many stereotypical views? i'm from a fairly poor working class family of 7 (mum, dad 5 children) and I spent 4 years doing a law degree then 2 years out to get some money to pay the fees for the 1 year diploma, then i spent 2 years training earning around £11k per annum. I'm now almost 4 years qualified and i've still got about 2 years worth of debt left to repay.

i work very hard for my clients and charge what I think is a reasonable rate. If people think becoming a lawyer is easy then go and f**king do it - it'll only take you around 5-7 years and around £30k of debt to qualify. you will need at least 4 higher grade passes or A levels at A grade to actually get in to the course though - not sure the thick b*stards on here could manage that.

as for lawyers being a cartel what a load of absolute sh*t. law firms (mine included) aggressively compete with each other for clients and costs have now been cut to the bone.

And you think you are smart?

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i'm a lawyer. i'm on a 4 day week and pay freeze. some of the posters on here deserve a damn good slapping. why do so many people on here hold so many stereotypical views? i'm from a fairly poor working class family of 7 (mum, dad 5 children) and I spent 4 years doing a law degree then 2 years out to get some money to pay the fees for the 1 year diploma, then i spent 2 years training earning around £11k per annum. I'm now almost 4 years qualified and i've still got about 2 years worth of debt left to repay.

i work very hard for my clients and charge what I think is a reasonable rate. If people think becoming a lawyer is easy then go and f**king do it - it'll only take you around 5-7 years and around £30k of debt to qualify. you will need at least 4 higher grade passes or A levels at A grade to actually get in to the course though - not sure the thick b*stards on here could manage that.

as for lawyers being a cartel what a load of absolute sh*t. law firms (mine included) aggressively compete with each other for clients and costs have now been cut to the bone.

Welcome to HPC.co.uk - When the posters aren't wearing tin foil hats they're wishing a slow and painful death to the people who earn "decent money" and are out to screw the average Joe on the street :lol:

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I'm a lawyer for my sins also. I have to agree I worked bloody hard to get 4 good A'Levels because I'm not naturally gifted in any particular way. Once you get past the degree though, life becomes very easy until you start working. The LPC was open book, then hardly any assessment for the professional skills and management course. The life is not what I expected, I have student debts and the money isn't that good for the amount of work and stress involved. I come home to my overvalued ex-council house riddled with problems, that I stupidly bought before the crash and think if I could go back I wouldn't go near the profession.

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I'm a lawyer for my sins also. I have to agree I worked bloody hard to get 4 good A'Levels because I'm not naturally gifted in any particular way. Once you get past the degree though, life becomes very easy until you start working. The LPC was open book, then hardly any assessment for the professional skills and management course. The life is not what I expected, I have student debts and the money isn't that good for the amount of work and stress involved. I come home to my overvalued ex-council house riddled with problems, that I stupidly bought before the crash and think if I could go back I wouldn't go near the profession.

Is it too late to try something else?

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A doctor and a lawyer were attending a cocktail party when the doctor was approached by a man who asked advice on how to handle his ulcer.

The doctor mumbled some medical advice, then turned to the lawyer and asked, "How do you handle the situation when you are asked for advice during a social function?"

"Just send a bill for such advice" replied the lawyer.

On the next morning the doctor arrived at his surgery and issued the ulcer-stricken man a $50 bill. That afternoon he received a $100 bill from the lawyer.

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