Why you should consider moving interstate to kick start your legal career

Starting your legal career will be one of the biggest struggles of your life. In your penultimate year of law school, dozens of applications may or may not lead you to a clerkship. If you miss out, you might do another hundred applications to get a graduate job. Once you have secured a job, you will likely experience long working hours, new areas of law, and colleagues who may edge towards the “so functional they are dysfunctional” edge of the spectrum. Just surviving at work feels like a massive accomplishment. Why on earth would you add an extra level of complication like moving interstate away from your friends and family? In this blog post I explain how moving interstate could be the best way to kick start your legal career. It is time to get comfortable with being uncomfortable.

Why should I consider moving interstate for a legal job?

1.       You live in a state with a slow economy

This is the number one reason you may have to move interstate. There are significantly more legal jobs in Sydney and Melbourne, and in the graduate market where it is often a case of getting in enough applications, you may find moving interstate is your only option. If you manage to get a job locally, you may have to move interstate after a year or two to progress your legal career. I am from Adelaide but moved interstate to study at the University of Sydney. Most of my friends who stayed in Adelaide and went to law school at the University of Adelaide either moved interstate immediately on graduation or had to move interstate for career progression two or three years into their careers.

The states with the highest unemployment rates are South Australia (6.9%), Tasmania (6.5%), and Queensland (6.4%). The ACT and NT have the best employment rates at 3.8% and 4.1% respectively. These are general employment figures and are not specific to the legal sector, but give you an idea of the relatively poor employment prospects in SA, Tasmania and Queensland.

2.       The area of law you would like to practice in requires you to move interstate

If you are set on a career as a lawyer in the Commonwealth government, you will likely have to move to Canberra. You might as well move there immediately post-graduation so you can to build your networks and reputation. In Australia, legal jobs in mergers and acquisitions are practically non-existent outside of Sydney and Melbourne. Lawyers specialising the mining sector may have to move to WA or commute every single week. If you are interested in working in the community legal sector, you are more likely to get a job in Melbourne than Sydney. Identify the area you would like to work in and go for it, regardless of where it is located.  

3.       Your firm has offered to place you on an interstate project

If you are working at a national or global firm, you may be placed interstate for six to twelve months to assist busy teams on larger projects. You may be “asked” whether you would like to relocate, but in reality if you do not take this opportunity you need to consider whether you are serious about your career. Working on large projects is fantastic for your resume, and can help you justify pay rises and promotions. You will also have the opportunity to network with lawyers and clients interstate and learn about the law in new jurisdictions.

4.       You practice across jurisdictions and need to develop your legal knowledge

It is not uncommon for practitioners to operate across jurisdictions, and if you work in state based employment law or property you may want to work in a different jurisdiction for a while to enhance the services you can provide to clients who operate across jurisdictions.

5.       You are in your mid-20s and still live at home

A typical scenario is as follows: You were born in Sydney, went to school in Sydney, went to university in Sydney, got a graduate job in Sydney, have never moved out of home and still live with your parents despite being in your mid 20s. Living at home is a nice cushy experience when you are working long hours. It is pretty convenient to come home to dinner every night, have your bills paid for and never run out of clean socks. You are best friends with your parents and are secretly scared your Mum will never let you move out. If you fall into this category it can be difficult to move out and your life can begin to feel stagnant. Moving interstate is a fantastic excuse to move out of home without causing offence or fuss. Even if it is just for 12 months, your family will get used to the new state of existence and you can move back to your home city (if you want to after experiencing the intoxicating pleasures of interstate life) without being pressured to move back home.

6.       You want to get outside your comfort zone

Moving interstate to a city where you know no one to start a new job where you know no one is intimidating for most people. This is a good thing – see next paragraph.

The flow on effect of getting outside your comfort zone

Conventional wisdom is that making easy incremental adjustments is best for long term change. Moving interstate is the complete opposite of this approach. You will be making many massive life changes at once. Starting a new job, moving house, and having to make new friends are some of the most stressful situations a person can live through. You have to put the effort in or you just are not going to be a success. For me, the “shock” of dealing with all of these new situations at once had an amazing flow on effect on other aspects of my life. The extra effort I had to put in at work and into starting a friendship group from scratch when I moved to Melbourne meant I also put extra effort into other aspects of my life. It helped me think more clearly about where I want to go as a lawyer, make a long term career strategy and be a hyper organised individual. Getting outside your comfort zone will not only make you a better lawyer, but have a positive flow on effect to other areas of life. After you conquer moving interstate, your confidence will gradually develop and other obstacles in your life will seem easy to overcome.

Is it difficult to get a legal job interstate?

The difficulty of getting a job interstate will depend on the recruitment market in your target city (Adelaide, Hobart and Brisbane have average economies and relatively stagnant recruitment markets) and the type of law you would like to practice. Prior to moving to Melbourne I applied for jobs in four different states. There does appear to be local favouritism to some extent as I received many more interviews in Sydney where I was living than in Melbourne. The smaller the city, the more there appears to be bias towards recruiting locals. However, where you are passionate about moving because the job is your dream job, you will likely be one of the best candidates. The fact you are willing to move interstate for this job speaks volumes about your commitment.  

Don’t hold back

Moving interstate to a new city is not a life-long sentence. If it does not work out you can move back to your old life and get a job in your home city. But if you never take the opportunity and never try to get that dream job, you might miss the opportunity to kickstart your legal career.    

Scared? Good. Now back yourself and make the move. No one else can do that for you. 

Law graduate job market 2016 – what will the new year hold for graduate lawyers?

The years 2013 to 2015 were not good years for law students to graduate. The law graduate job market retracted at the same time that the number of law students graduating and job hunting increased significantly. Will 2016 offer improved opportunities for law graduates trying to get their foot in the door? While the downward trajectory in legal demand continues, there are some positive signs for graduates trying to get their first job as a lawyer, particular if law graduates are looking in the right places. In this blog post I have drawn from my own experiences and understanding of the legal market as well as the Melbourne Law School and Thomson Reuters’ Australia: State of the Legal Market 2015 available here.   

Traditional commercial law firms

Demand for commercial legal services in the Big 8 Firms (Allens, Ashurst, CU, CCW, HSF, KWM, Minters, Norton Rose) and larger firms has been on a downward trajectory for the past five years and the trend continues, with demand falling 2% in 2015 and a 3.8% decline in the number of lawyers employed in commercial legal services. The decline in demand is particularly prevalent in the industry’s three biggest practice groups – dispute resolution, banking & finance and general corporate advisory. Some Big 8 and large firms have continued to use offshore low-cost legal process operations in places like India for work like discovery, due diligence and document management services. While some of this work would ordinarily be given to graduates, most of this work is very basic and is more likely to effect the number of paralegals and administrative/support staff a firm employs than the number of graduates.

The outlook is not all doom and gloom for law graduates seeking a career in commercial law. Large law firms have been conservative in the number of graduates they have recruited the past three years, and in some cases, have under recruited. This could lead to an increase in graduate positions offered in 2016. Demand for legal work in some practice groups increased in 2015 including:

1.       Mergers & Acquisitions;

In 2015 there was a 2.1% increase in demand for M&A work. The weaker dollar has caused an increase in international investment in Australia, as investment is cheaper and there is a reduced risk of currency fluctuation for bidders. Australia is the second largest M&A region in the Asia/Pacific, second only to China. There is indication that these conditions for M&A will continue in 2016. There is potential for even greater growth in M&A, with the imminent review of the Foreign Investment Review Board. Large firms will look for graduates who have a keen interest in M&A, as this is a growth area in an environment where demand in other traditional areas of commercial law are in the decline.

2.       Real estate, property, constructions and projects;

In 2015 there was a growth in real estate and projects work, especially among the Big 8 firms.

3.       Intellectual property; and

4.       Tax law.

If you are interested in a career as a GST lawyer look out for a spike in recruitment if the rumoured GST reforms take place.

If you have a keen interest and/or experience in one of these growth areas, you have a stronger chance of obtaining a graduate position at a large firm. These growth areas could also lead to large firms engaging in strategic hiring – that is hiring graduates to settle directly into a team rather than undertaking the traditional rotation training program. These opportunities will usually be advertised separately to the ordinary graduate program and sporadically throughout the year, so make sure you regularly check your target firm’s website. Demand for services of Big 8 and large firms increases significantly in November to December (before the January slow down). Firms anticipate this and often recruit extra graduates in September/October. Law graduates applying at this time of the year are usually required to start work immediately. If you missed out on a position earlier in the year, or finish half way through 2016 make sure you watch out for these opportunities.

Law graduates keen for a career in commercial law should also look at medium sized firms that are rapidly growing such as Mills Oakley and HWL Ebsworth. In the past three years HWL Ebsworth increased its revenue from $102m to $219m. More growth means more jobs for graduates. Note that medium sized firms that have seen rapid expansion may not have had a formal graduate program before, so you will probably experience a few teething issues, such as less comprehensive formal training than if you were working as a graduate at a large firm. However, the benefit of working at a rapidly growing firm is that you will likely be given more responsibility earlier on and will always have enough work and billable hours. Medium sized firms are more likely to hire graduates on shorter term contracts, such as 6 months and 12 months, but don’t let this put you off. Any experience in the legal sector is better than none.  

New law

The last two years has seen the rise of the unconventional law firm, which commonly use technology and pricing structure to differentiate themselves. Examples of new law firms include HiveLegal, Nest, LawPath, and LawCentral. New law firms are increasingly seen as a threat to traditional small and medium sized firms, as they are able to contain pricing through use of digital solutions. Many are experiencing double digit growth.

What can these new law firms offer law graduates? You will be surprised that some new law firms, such as Legal Vision, regularly recruit graduate lawyers. These positions generally offer very interesting work and a young, upbeat and relatively relaxed working environment, so are perfect for law graduates who would like to work in commercial law but are not so keen on a strict corporate environment.

Government sector

Obtaining a job as a government lawyer at the Commonwealth level has been difficult the past few years as graduate programs were cut and an APS freeze was in place on new permanent ongoing employees. This freeze has now been lifted, so prepare for an increase in law graduate positions in 2016, particularly at AGS, which has survived its movement into the Attorney-General’s umbrella and is once again thriving. At the state level, getting a position as a graduate lawyer has been cut-throat for some time. For example, NSW Crown Solicitors are rumoured to take on only three graduates a year. However, the programs remain in place, and are up for grabs. Remember that government recruitment processes take much longer than private sector, so start applying at least 6 months before you would like to start a government job. Formal graduate recruitment programs often recruit 12 months in advance.

In-house lawyers

The trend towards having larger in-house teams continues and is likely to continue in 2016. Companies are performing an increased amount of legal work internally, relying less on advice from external law firms and briefing barristers directly instead of through law firms. Some in-house teams are large enough to constitute their own law firm and recruit graduates and junior lawyers. Companies to watch out for include Telstra, Lend Lease, Woolworths, Coles Myer, Microsoft, Google and Yahoo.

Multi-disciplinary practices (MDPs)

Consultancy and business advisory firms are expanding their portfolio to include legal.  PricewaterhouseCoopers (PwC), KPMG, EY and Deloitte have all indicated they will grow their legal capacity. Each of these firms already has over 1,000 lawyers working for them and the numbers continue to increase. These positions are predominantly in tax advisory law. If you have an interest in this area, it could be a good alternative to working at a Big 8 law firm.

Community legal sector

Community legal centres have been under severe financial strain for years, mainly due to government funding cuts. In December 2014 the Productivity Commission released its Access to Justice Arrangements report. The Productivity Commission looked at a broad array of factors effecting access to lawyers and legal services including the level of demand for legal services and the economic and social impact of the costs of accessing justice services and securing legal representation. The Productivity Commission recommended an immediate increase in government funding for legal assistance services of $200 million per year. A full twelve months after the report was released the Productivity Commission is still to receive a formal response from the government and the community legal sector continues to operate on the verge of collapse. Community legal centres can barely afford to pay their current employees, let alone employ and train graduates. Law graduates keen for a career in the community legal sector may have to obtain initial experience elsewhere and volunteer at a community legal centre until they can work in their dream job full time.