Of all those providing professional services, lawyers have often
been the last to suffer in a downturn. Many actually do quite well
when the economy looks ominous. Retooling for insolvency and
restructuring work has served many firms that have found their
previously booming corporate and capital markets practices
underemployed in straitened economic circumstances.
But in the recession of the early 1990s some firms did what had
previously been unthinkable: they laid off lawyers. A return to
this looks increasingly likely for some firms. Those that have
grown spectacularly on the back of a continuous flow of deals are
now having to reassess how they will cope now that demand has
dropped off.
There has been unprecedented growth in the legal sector over the
past five years or so. During this time many firms have appointed
new partners, and associate salaries have in some cases more than
doubled in the past five years....
