Australian Law Firm Pay Rates Decline

Pay rates for Australian lawyers have slowed in the past year following major earlier increases in their incomes.

The Mahlab Report 2023 based on the July 2023 reviews shows the subdued nature of the Australian legal market at present..

While law firms have still reported healthy profits and actively promoted lawyers to partner positions, their revenues have experienced a slowdown.

In-House Legal Job Opportunities

On the other hand, corporations have been expanding their legal teams, especially at the legal counsel and senior legal counsel levels.

There have also been numerous corporate restructures aimed at improving efficiency, managing costs, and establishing robust governance frameworks. This has created new opportunities for General Counsel, Company Secretaries, and governance lawyers.

The trend of lawyers seeking overseas work experiences continues, although the demand for Australian lawyers in the UK and the US has diminished.

Some Australian lawyers who left before the pandemic are returning home, but the shortage of lawyers has been exacerbated by those who left Australian shores in 2021 and 2022.

Legal Job Benefits

To attract and retain talent, employers are focusing on offering a range of subsidised benefits, additional annual leave, and days of bonus leave. They are also making efforts to create an attractive and well-resourced work environment, encouraging employees to spend more time in the office.

But many corporate and government employers are finding it challenging to match the salary offerings in private practice, leading to increased competition for talent.

Given recent interest rate rises, supply chain issues, geopolitical concerns like the war in Ukraine, and a global economic slowdown, legal employers are approaching recruitment with caution and tighter cost control while remaining mindful of their business needs.

Private Practice Competition

Private practice remains highly competitive in its pursuit of junior legal talent and experienced senior lawyers, particularly those with portable practices and teams.

Towards the end of the financial year, market activity slowed down, affecting overall profitability. In response, law firm managers are adopting a more cautious approach when it comes to salary reviews, hiring decisions, and workflow optimization.

The primary focus for 2023 has been on hiring top-quality talent, retaining valuable staff, and driving efficiencies through innovation and appropriate staffing levels.