In-house legal recruitment market update Q4
Corporate and commercial
The corporate and commercial legal hiring landscape reflects ongoing economic challenges, with a slight decline in vacancies compared to the same quarter last year, although only by 5%. The media, energy and retail industries experienced a notable downturn, with vacancies dropping by 20%. However, we saw a positive shift for the not-for-profit sector and pharmaceutical/health sectors which showed a robust increase in the number of hires.
Employers are continuing to seek strong commercial lawyers in the 3-6 PQE range, with a positive resurgence in demand for NQ-2 PQE candidates for the first time this year. The market remains challenging for those seeking senior positions at GC/Head of Legal level, with the majority of hiring continuing to be at the junior and mid-levels.
Economists are forecasting mixed trends for Q4, so legal hiring may remain slow as businesses wait for greater clarity on the economic outlook before committing headcount budgets. Whilst hiring is likely to remain cautious until there is clearer evidence of economic recovery, skillsets such as regulatory, compliance, technology and data privacy are likely to continue to be sought after by businesses and their legal teams.
As we head into the final stretch of the year, we are encouraging employers to keep in mind that salary is still cited as the main driver for candidates, with a flexible hybrid working policy following in close second place.
Contact Georgia Morgan-Wynne
Banking and financial services
In Q3 2024, the UK financial services and banking in-house legal market remained steady but cautious – as it has been throughout 2024. There have, however, been some noteworthy hiring trends across key sectors:
Insurance
Hiring in the insurance sector saw a slight decline, dropping from 8% in Q3 2023 to 7% in 2024. This reflects a cautious approach as the sector continues to navigate regulatory pressures and digital transformation challenges. Despite steady demand for legal professionals specialising in regulation, cybersecurity, and InsurTech, the sector’s legal hiring demands have slowed.
Investment and corporate banking
Hiring in this sector increased from 1% in Q3 2023 to 4% in Q3 2024. Demand this quarter has been for legal experts specialising in securitisation, leveraged finance, corporate M&A and derivatives.
Asset management
Hiring in asset management saw a notable slowdown from 8% in Q3 2023 to 4% in Q3 2024. This drop reflects the challenges in sourcing talent for roles focused on sustainable investing and regulation.
Private equity
Private equity hiring, previously stagnant at 0% in Q3 in 2023, showed an uptick to 2% in 2024. This increase is driven by a focus on M&A and cross-border deals. Geopolitical uncertainties have added complexity, but firms are gradually ramping up recruitment to meet these evolving demands.
Interim and consulting
We are seeing a steady rise in interim hires across the financial services market, as clients seek flexible solutions during peak times and while conducting permanent searches. There’s also a growing trend in non-traditional hires, such as fractional support, fully remote roles, and part-time arrangements, offering a great way to attract senior talent.
A shifting landscape
The percentage differences between 2023 and 2024 demonstrate sector-specific hiring shifts. Insurance remains stable, though slightly slower in growth. Investment and corporate banking stand out with notable growth in hiring activity, Asset management, on the other hand, is showing a noticeable slowdown and finally, private equity is gradually picking up hiring momentum, especially in response to complex deal-making environments.
These shifts reflect an increasingly competitive talent landscape, with specialised expertise continuing to drive demand across financial services sectors.
Outlook for Q4 2024
In Q4, we expect to see a strong demand for in-house legal counsel across financial services, particularly fintech, where expertise in digital payments, blockchain, and AI regulation is critical. Private equity will increase hiring for legal professionals with M&A knowledge. Insurance legal hiring is expected to stay stable, while asset management will continue to face challenges such as finding in-house counsel with specialised experience. Competition for top legal talent will remain competitive.
Contact Nikki Newton
The interim legal recruitment market
Despite the summer period of Q3 in previous years seeing slower running processes and a slight dip in vacancy count, Q3 in 2024 has been comparatively buoyant for the interim market. We have experienced a significant increase in vacancies year on year, alongside a notable increase in day rate contractor demands. This is largely due to headcount sign off challenges, where there is a need to fill gaps quickly for shorter periods of time, in addition to increased demand for flexible hiring.
Overall, the interim market has been slightly more varied in terms of FTC employee vs day rate contractor requirements when compared to 2022 and 2023. However, FTC employee hiring is still the most favoured among companies seeking legal support to cover maternity leave requirements or for roles that have the possibility of becoming permanent in the future.
Contact our interim team
Legal recruitment in the UK regions
The in-house legal market outside London is experiencing steady growth across various regions in the UK, driven by demand linked to specific industries. This trend is particularly evident in areas focused on technology, where there is an increasing need for expertise in regulatory compliance, commercial contracts and data privacy.
Manchester has emerged as a key hub for in-house legal roles, especially in financial services and technology.
In southern regions, cities like Cambridge and Reading are also seeking lawyers in data protection, cybersecurity, and intellectual property law. Additionally, financial services are leading to significant hiring in cities such as Edinburgh and Bristol.
The demand for legal expertise is also rising in Birmingham, particularly within the manufacturing, automotive, and energy sectors, while Leeds demonstrates a strong legal market in professional services and healthcare. The pharmaceutical industry is expanding throughout the Midlands and North West, driven by heightened compliance and regulatory work following the pandemic.
Regional talent attraction trends
Hybrid working models continue to be vital in attracting top legal talent, with businesses balancing remote and office-based work to offer flexible hours and locations. Salary trends are also evolving, becoming increasingly competitive in major cities like Manchester and Birmingham, where compensation packages are approaching London levels.
Companies are enhancing their benefits offerings, especially for senior roles, to attract talent, particularly in sectors like fintech and biotech, which face significant skills shortages.
Contact Vin Murria
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