In-house legal recruitment market update Q1
Corporate and commercial
The corporate and commercial legal hiring market in Q4 2024 reflected ongoing economic uncertainty, with a slight decline in active vacancies. Demand for mid-level commercial lawyers remained strong, resulting in heightened competition for talent. However, the GC and Head of Legal market continued to be sluggish, as businesses hesitated to commit to senior hires unless these roles demonstrated clear return on investment and versatility in managing risk, regulatory and operational challenges.
Specialist skill sets in regulatory, compliance, technology and data privacy remained highly sought after, underscoring the importance of navigating complex legal and regulatory landscapes. Meanwhile, a growing number of companies shifted away from fully remote working arrangements to hybrid models, typically requiring employees to attend the office two to three days per week.
Compensation remained a top priority for candidates, and organisations that failed to align with market rates particularly struggled to attract mid-level talent.
Predictions for the quarter ahead
Legal hiring is expected to remain cautious in early 2025, as many employers wait for clearer signs of economic recovery before expanding headcount. However, growth is anticipated to pick up in Q2 and Q3 as market confidence improves. Scaling businesses looking to position themselves for long-term growth are likely to focus on strategic senior hires (GC and Head of Legal roles) by mid-2025. These appointments will prioritise leaders who can drive risk mitigation, strategic value, and lean team leadership.
Interim hiring predicted to rise
The success of interim hiring in 2024, coupled with ongoing economic challenges, is expected to encourage more organisations to adopt interim and fixed-term contracts as flexible solutions for managing workloads and legal spend. Additionally, legal teams are likely to increase their investment in legal tech to streamline processes, manage risk and enhance value.
Tools focused on contract lifecycle management, compliance and legal analytics are expected to see wider adoption across the industry.
Employer brand a priority
As candidates become increasingly selective, businesses will need to refine their employer value propositions to remain competitive. Emphasising workplace culture, opportunities for career progression, and impactful work will be essential. The debate around hybrid working is set to continue, with companies that strike a balance between flexibility and in-office collaboration better positioned to attract and retain top talent.
Competitive salaries and clear career development pathways will remain critical to standing out in the market and retaining top legal talent. Furthermore, employers must prioritise diversity, equity, and inclusion (DEI) to ensure they are creating inclusive recruitment processes and working environments to enhance their ability to attract and retain diverse talent in 2025.
Contact Georgia Morgan-Wynne
Banking and financial services
Q4 2024 in review
The in-house financial services legal recruitment market slowed in Q4 2024, with macroeconomic pressures impacting hiring across asset management, insurance, fintech and professional services. Private equity and venture capital firms remained active but with a more selective approach, focusing on legal talent with expertise in regulatory matters and complex transactions such as M&A and restructurings.
Credit and debt funds saw growth, driving demand for professionals skilled in financing structures.
Real estate investment also showed demand for legal professionals in real estate finance, acquisitions and joint ventures, while private wealth management prioritised lawyers adept in regulatory frameworks, tax structuring and succession planning.
Despite the cautious overall recruitment landscape, sectors like insurance and fintech continued prioritising key legal expertise. Fintech saw growing demand for professionals with experience in payments, blockchain, digital assets and cybersecurity as companies adapted to evolving regulations and technological advancements.
The quarter ahead
Early trends in Q1 2025 suggest a gradual recovery in legal hiring. Private equity remains a key driver, underpinned by significant funds ready to deploy, as firms seek professionals with transactional expertise and deal execution experience to capitalise on market opportunities. Fintech is expected to sustain demand for legal talent in payments, digital innovation, and regulatory matters. Asset managers and insurers, while more conservative, continue steady recruitment to meet evolving market demands.
The demand for M&A and cross-border specialists has risen, fuelled by market consolidation and restructuring.
Interim legal solutions remain crucial as firms manage regulatory deadlines and key projects. Notably, there is an increasing demand for fractional General Counsels (GCs), who offer flexible, high-level legal expertise on a part-time or project basis, enabling organisations to address immediate legal needs.
Although Q4 2024 saw a cautious hiring approach, early Q1 2025 trends indicate recovery driven by private equity, fintech, real estate investment, private wealth management, and restructuring activities. Legal hiring is expected to emphasise transactional and regulatory expertise alongside interim solutions, reflecting a market adapting to immediate needs and long-term challenges.
Contact Nikki Newton
Contact our interim team
Legal recruitment in UK regions
The UK’s legal recruitment landscape is shifting across various regions, with some areas seeing strong demand for in-house legal roles, while others are navigating more challenging times.
Scotland (Edinburgh, Glasgow)
In-house recruitment is robust, with financial services leading the way, particularly in Edinburgh. Glasgow is seeing demand in energy and public sector law.
Yorkshire (Leeds)
Leeds is a growing centre for professional services, healthcare law and digital transformation legal roles. The region is attracting talent from other areas due to competitive salaries and quality of life.
North West (Manchester)
Manchester continues to thrive as a regional hub, especially in financial services and technology law. The city’s legal market benefits from a strong focus on innovation, particularly in fintech.
East Midlands
The East Midlands is rebounding after a sluggish couple of years, with increased recruitment in real estate and corporate law. Local firms are expanding through mergers which is helping to boost hiring activity.
West Midlands (Birmingham)
Birmingham remains a critical market, with significant hiring in manufacturing, automotive, and energy sectors. The city is also benefiting from its central role in UK infrastructure projects.
South East (Cambridge, Reading)
Southern cities are experiencing strong demand for in-house counsel in data protection, intellectual property and cybersecurity law, reflecting the tech-driven economy.
Market outlook
Despite positive trends in several regions, there are notable challenges facing the recruitment market. Employers remain cautious due to economic uncertainty, leading to a reduction in the number of new roles. Jobseekers are also reluctant to move unless offered significant incentives, highlighting a shift towards stability. Additionally, specialist roles in areas like artificial intelligence, ESG and data law remain difficult to fill, despite strong demand.
To attract top talent, companies are offering higher salaries and improved benefits packages, particularly in key regional hubs.
While recruitment activity varies, cities with strong tech, financial services and manufacturing sectors continue to lead in-house legal hiring, though overall growth is tempered by broader economic concerns.
Contact James Brewster
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