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. 

Why junior lawyers should choose experience over size of pay cheque

In an ideal world all lawyers would work in the area of law they love and be paid a large amount to do this work. The reality for junior lawyers is very different. In the current legal employment market, law graduates are lucky if they can get any job as a lawyer, let alone a job in an area of law they want to work in. It may seem an easy decision to take a position working in commercial law, especially if a relatively large pay cheque is offered. However, if working at a commercial law firm is not your dream job, and you do not have the relevant experience at two years PQE to transfer to your dream job, it may become increasingly difficult to make that transition.

Why experience is key

The magic number in terms of experience junior lawyers need before they have real bargaining power in the legal market is 2 years post-qualification experience (2PQE). After 2PQE you will no longer be on a conditional practising certificate and are considered a fully fledged lawyer. The type of work experience you have at this point is key to scoring your dream job. If you have been job hunting recently you would have noticed that while there seems to be a glut of jobs for graduate lawyers, there are plenty of jobs advertised for 2PQE lawyers. One reason for this is that training graduates is expensive, and with the tight budgets many legal teams are operating under, it is cheaper to hire a trained 2PQE lawyer than train a law graduate from scratch. At 2 years PQE if you are not already working in your dream job, this is your opportunity to make the jump. However, you can only make the jump if you have the relevant experience. If your experience up to that point is not transferrable to the area of law you really want to work in, you may be in trouble.

The allure of well-paying jobs

After slumming it as a law student for half a decade, it can be tempting to look for the highest paying graduate job and go for that. Do not give in to this temptation. In Australia we have strong minimum wages, and regardless of what type of legal job you land you will be paid at least Award rate or minimum wage, which is sufficient to cover rent and living expenses.

You should have a clear idea of the areas of law you are interested in and the type of clients you would like to work for. Law students have a tendency to forget about the type of clients they want to work for when this is as important as identifying the area of law you would like to work in. For example, if you have a keen interest in employment law and industrial relations, your plan will be very different depending on whether you would like to represent employers, employees, or unions. These categories have a number of sub-categories. You will regret choosing the size of your pay cheque over obtaining relevant experience when you later try and transfer into the field of your dream job.   

This is not to say you cannot have both a job you love and be paid well for it. If you can achieve this straight out of uni, go for it. If your life’s calling is to work as a taxation lawyer in a large commercial law firm it may be that you can work in your dream job and be paid well from the get-go. For most lawyers, it can take a while to achieve both goals.

How to get a job in the area of law you want

At 2 years PQE you will have two assets broadly speaking:

1.       The experience and skills set you have gained in those two years; and

2.       A narrative.

These assets are what will get you your dream job. Speaking in the abstract can be difficult, so I will give some examples of how your experience and narrative can land you your dream job:

1.       You want to work at a community legal centre

With funding cuts to community legal centres around Australia, it is almost impossible to get a paid graduate position. Lawyers at community legal centres need to be able to run their own matters with little supervision, so there is a higher chance of getting a job after you have a few years’ experience. Experience in a variety of areas including leasing, family law, mental health, administrative law, and criminal law would assist in getting the job, but experience doing legal work for vulnerable individuals can be more important. If you find yourself at a commercial law firm, try and get a rotation in the pro-bono team. Even better, work at a smaller firm that represents individuals and has a large pro-bono presence, work for Legal Aid or take Legal Aid work as a lawyer. Volunteering at community legal centres after work hours will also show your commitment and add to your narrative.

2.       You want to be a criminal defence lawyer

Luckily, smaller criminal defence firms are often advertising for law graduates, as criminal law is litigious and junior lawyers are always needed. If you can show a passion for criminal law and demonstrate you studied relevant electives at university, you should be able to get a job as a junior criminal defence lawyer. Experience working as an Associate in the District or Supreme Court for a criminal law judge is also well regarded. What you do not want to do is go to a large commercial law firm and then later try and transfer to criminal law. If the only job you can get is in commercial law, at least ensure it is at a smaller firm where you can get litigation and court experience in the Local and District Courts.

3.       You want to work in media law at the ABC

This is a much coveted in-house job in media law. To try and get this job, you will not only need experience in defamation, IP, copyright and contracts, but you will also need in-house experience. It is traditionally difficult for graduates to get jobs in-house. However, if you find yourself at a commercial law firm, you may be able to go on a secondment to work in-house for a period of time. You will also need a convincing narrative that demonstrates a passion for media law and media issues.

Hopefully you can see how important the type of legal experience and narrative you develop after you leave university is key to getting your dream job. If you are fixated on how much you are getting paid, you may miss developing the experience you need to eventually get that dream job. Good luck!

How to get a job as a government lawyer

If you have a passion for government and law, there is no better job for you than working as a government lawyer. Sure, some law firms do work for government clients. However, nothing compares to actually working in the heart of government, contributing to government accountability, and working on matters that have an impact on the community. Getting a job as a government lawyer as a graduate is difficult. The process is even more competitive than getting a job in a private sector law firm. This is due to the complete withdrawal or narrowing of most graduate government lawyer programs and a freeze in the Commonwealth sector on recruiting new permanent employees. In this blog post I explain the types of government lawyers out there and provide tips on the application and selection process.    

Types of government lawyers

The Commonwealth and state governments all have a myriad of lawyers working for them:

1.       In-house government lawyers

Often referred to in government-speak as “Legal Officers”, “General Counsel”, or “Legal Advisers” these lawyers work in government departments, government agencies, tribunals and commissions. Some government departments, such as the Department of Defence have very large in-house legal teams. Other in-house legal teams are much smaller. In-house lawyers generally provide their employer advice on a broad range of legal issues that may arise. If you are a government lawyer in a smaller in-house team you may be required to work on issues as broad as leasing/property, contracts, procurement, employment and industrial relations matters, privacy, freedom of information, defamation and intellectual property. The legal problems will be referred to you by other non-legal teams within your department/agency, such as Human Resources, corporate or customer service.

2.       AGS/Crown Solicitors

Working at Australian Government Solicitors or a state government’s Crown Solicitors is similar to working at a large law firm except all of your work is government work from government clients. Teams are specialised like at any law firm, so expect to see Property, Commercial, IP/Copyright and Litigation practice groups, as well as specialised public law practice groups such as Constitutional law, Administrative law, and Freedom of Information. Lawyers at Crown Solicitors are highly specialised and receive referral work from in-house teams or directly from Departments and government Agencies. For most matters except Constitutional law and some other areas of public law, AGS and Crown Solicitors compete for government work with private law firms.

3.       Law reform lawyers

With budget cuts in recent years, the number of lawyers working in law reform has declined significantly. The Commonwealth Attorney-General’s Department employs a number of lawyers in law reform positions, as do state agencies like the Law Reform Commission of NSW. Government lawyers working in law reform generally make recommendations to the Attorney General who then attempts to implement changes in parliament.

4.       Legislative drafters

If you studied “Interpretation” at university and loved it, legislative drafting may be for you. Legislative drafters are lawyers whose full time job is to write legislation and/or regulations. Positions for “junior drafters” are not common, but I have seen one or two positions advertised before. Positions within government departments drafting Regulations are more common, especially in Regulation heavy areas, such as the NSW Office of Land and Heritage which looks after a large amount of Regulations which are predominantly enforced in the NSW Land and Environment Court.

5.       Criminal lawyers

Governments are responsible for prosecuting crimes in their jurisdiction. Those interested in criminal law should look at state DPPs and the Commonwealth DPP. Some government departments will also employ criminal lawyers, such as the Department of Immigration and ASIC (for corporate crime).

6.       Freedom of information and privacy lawyers

Complying with the Freedom of Information Act and the Privacy Act and their state equivalents can be complicated and arduous. Most government departments and agencies will have trained staff processing freedom of information requests and processing privacy complaints. Most departments will also have a Freedom of Information and Privacy lawyer to advise on the difficult matters. This is a very niche area, but there are many career opportunities within government if FOI and privacy is a particular interest of yours.

Which departments and agencies have graduate programs for lawyers?

Unfortunately, many graduate programs for government lawyers have been cut completely in recent years. Remaining programs have shrunk in size, so that only one or two graduates are taken instead of 10 or 15. The good news is that there are more positions for government lawyers with 2+ years’ experience, and if you can’t get a position straight from university, it will be easier to get a position after obtaining some legal experience elsewhere. Some people may recommend accepting a non-legal graduate position in government and then trying to convert to a legal position later. I would advise against this, as getting legal experience early in your career is vital and it is not easy to change to a legal position within government after people have categorised you and seen you in a non-legal position.

Here is a small selection of government lawyer graduate programs. Other graduate positions will arise on an as-needs basis, so always keep an eye out:

Commonwealth

1.       The Australian Securities and Investment Commission (ASIC);

2.       The Australian Prudential and Regulation Authority (APRA);

3.       Australian Government Solicitors (AGS);

4.       Attorney-General’s Department;

5.       Commonwealth Director of Public Prosecutions;

6.       Administrative Appeals Tribunal recruits graduates to be Associates/Tipstaff to AAT Members.

State

1.       NSW Crown Solicitors; WA State Solicitors Office; SA Crown Solicitors Graduate pool; Victoria Government Solicitors Office;

2.       NSW DPP and other state DPPs;

3.       NSW Office of Environment and Heritage usually takes one or two law graduates a year;

4.       State Tribunals such as NCAT and VCAT employ graduates a Associates/Tipstaff to Members.

Look outside the square

1.       Legal Officer in the Defence Force;

2.       NSW Police Accelerated Prosecutor Recruitment Program - become a police prosecutor through an accelerated program which helps you avoid the usual 3 year mandatory service in general police duties;

3.       Legal Aid Victoria Junior Lawyer Program –Legal Aid is an independent statutory body funded by the Commonwealth and relevant state government.

Why working as a government lawyer is amazing:

1.       Government lawyers do work that matters. The public interest must always be at the forefront of your mind. Examples of making a small difference in day to day work include ensuring a member of the public has a fair hearing or ensuring a member of the public’s freedom of information application is dealt with appropriately.

2.       The work of a government lawyer is generally high profile, topical and often covered in detail in the media. While you are not able to join in the conversation, working on such high profile work is exciting.

3.       Many government lawyers are able to contribute to law reform in some way.

4.       The type of work junior lawyers are given is generally much more challenging and interesting than if you were a junior lawyer at a large commercial law firm. This is because government legal departments are top heavy. Most lawyers are very senior. The few junior lawyers that are employed by government tend to get interesting and challenging work. Large law firms tend to be bottom heavy in that there are a lot of junior staff around, meaning that interesting work is spread more thinly, and junior lawyers spend much more time doing “trudge work” like due diligence and assisting with preparing documents for litigation.

5.       The work is extremely varied and interesting. The variety of areas of law the average government lawyer has to adapt to is extensive.

6.       Government lawyers have additional layers of responsibility such as abiding by the model litigant rules, ensuring their standard of behaviour is of the level expected from the public sector, and understanding any document produced could be subject to a freedom of information request and potentially end up in the media.

7.       There is a large emphasis on professional development and support for further study. Colleagues tend to be positive and love the work they are doing. This makes for a great working environment.  

Do not apply for a position as a government lawyer unless:

1.       You enjoy working in complicated areas of law. Most areas of law have additional levels of complication when applied to the government. If you hate statute heavy areas of law and despise statutory interpretation, working as a government lawyer is probably not for you.

2.       You like working hard. I have yet to meet a government lawyer who does not work extremely hard. Budget cuts the last few years has left legal departments very lean. Junior lawyers are often given challenging work that is beyond their experience level. You need to have a positive approach to survive.

3.       You must be adaptable, as you will have to deal with areas of law you may not have seen before.

4.       You must be patient. Government must be accountable for everything it does, so making changes can take time, as the correct process has to be followed. This can be frustrating for lawyers who come from the private sector.

5.       You are happy to be constantly performance reviewed. Government lawyers are paid with tax payers money. Just as government is accountable, employees must also be accountable. Government lawyers will constantly be on a quarterly or six monthly performance plan. This is a positive process, as you will get formal feedback from your supervisor often, and will be able to fast track your legal development.

6.       You are happy to have a “no frills” workplace. There is no free tea/coffee/cookies/Friday night drinks in the public sector. This doesn’t bother me. However, if you are the kind of person who can’t go without a free fruit bowl/free dinner after 7pm/free taxi home, the public sector is not for you.  

A few tips for applying

The recruitment process for getting a job in government goes for months, and is even longer for graduate recruitment where there are hundreds and sometimes thousands of applicants. The usual recruitment timeframe from the application closing date to an applicant being chosen is 3 months. For graduate recruitment the time frame is more like 5 or 6 months. I would start looking for a job in government at least 6 months before you would like to start working as a government lawyer.

Applicants will be subjected to more than just two rounds of interviews. There are additional tests for most jobs in the public sector. For example, NSW DPP and NSW Crown Solicitors both have written tests for applicants in their graduate programs (like a mini exam). Make sure you have learnt the name of your Department head and the Minister responsible for your Department/Agency. Some government recruitment processes also involve attendance at a selection centre. Awareness of where your Department/Agency fits into the government as a whole is important. If you are going for a Commonwealth government position, make sure you have revised the APS Values, model litigant rules and ensure you are on top of any recent legal developments in the area you are applying for.

The realities of job hunting as a 0-2yr lawyer – what your law school won’t tell you – reflections from recent job hunting

Job hunting as a 0-2yr lawyer can be a shock for students who been led to believe by their law school that it is relatively simple to get a job after university. The reality is that getting a job and building a career is just as difficult, if not more difficult, than getting through university. Knowing what job hunting is really like can help you manage your expectations and recover your confidence quickly from any setbacks. This blog post aims to bridge the void between what students are led to believe about job hunting and the reality of job hunting as a junior lawyer.

The top 20 realities of job hunting as a 0-2yr lawyer:  

1.       It is very unlikely you will be able to work in your favourite area of law to start with

In the current competitive graduate climate, only very lucky graduates land positions in the areas of law they want to work in straight away. Getting legal experience should be a priority, which may mean accepting a position where you may not be working in your favourite area of law. You are infinitely better off getting legal experience for 12 months then remaining unemployed for 12 months while trying to get into the specific area you want to work in. Even if you are working at a law firm that practises the area of law you want to work in, it is likely you will be part of a rotation system where you have to work in a variety of different areas of law during your graduate year(s). Always have a long term strategy to get into the area of law you want, but don’t be afraid of working in other areas to help get you there. For example, as a law graduate I worked in property law, family law, and commercial disputes and insolvency. After those 12 months, with solid experience and references, I finally was able to get a position in industrial relations, the area of law I wanted to work.

2.       Many good opportunities are short fixed term contracts as opposed to permanent positions

Traditionally, graduates were taken on for an initial 2 year contract period. This has changed. I have seen advertisements from reputable firms looking for graduates and junior lawyers for 3 month or 6 month contract periods. That is, they are recruiting for specific projects they need junior lawyers for instead of taking on junior lawyers permanently or for long term contracts. Do not be scared to apply for these positions, as even a short fixed term contract could lead to further work or a permanent position. Again, getting any legal experience should be a priority.

3.       It is likely you will have multiple jobs in your first few years as a lawyer

The days are gone where you will stay at the same law firm your whole life. It is becoming increasingly rare to even stay at a law firm for the first two years of your career. There are many reasons for this. While top tier firms have kept investing in their 2 year training programs, most other firms have reduced graduate programs to a 12 month fixed term contract. You may even find yourself on a shorter contract (see above paragraph). It is common to change jobs in the first few years of your career as you try and find a job in the area of law you want in an environment you feel comfortable. Do not feel disheartened if you find yourself unemployed after a fixed term contract. The nature of a fixed-term contract is that it ends! It is not personal. Try and get good references and move on quickly.

4.       It takes a long time to job hunt

The average time it takes a person to find a job is 6 months. The recruitment process for one position can take two to three months. Applications are usually accepted for 4 weeks, followed by at least 2 weeks of time for the applications to be sorted, 2 weeks for first round interviews, 2 weeks for second round interviews, and another week or two for referee checks. Then if you are offered the position, there will usually be at least a 2 week period before you commence. The recruitment process of public sector jobs is even slower. So don’t be disheartened if it is taking time. In recent job hunting, I found that I didn’t hear anything for weeks and weeks and then suddenly received plenty of interviews.  

5.       You will either be underqualified or overqualified for positions

Junior lawyer positions tend to be advertised at graduate level or for a 2+ year lawyer. If you fall in between these experience levels you will either be underqualified or overqualified for jobs you are applying for. Do not be afraid to apply for positions you think you may be underqualified for. There is a large variation in ability level between junior lawyers. In recent job hunting I was surprised to find I got interviews for most of the positions I thought I was underqualified for, and often missed out on interviews for positions I was overqualified for. Don’t wait for a perfect position that fits your experience to come up. It may never appear.

6.       You will be competing with more experienced lawyers for jobs

Related to the above point. Positions are often advertised broadly, such as “Junior litigation lawyer 1 – 4yr PQE”. If you are a one year lawyer, you will obviously be less experienced and competing against lawyers with 3 years more experience than you. Still apply! You have the advantage of being a cheaper option for the firm, as the wages paid to a 1 year lawyer are significantly less than what a 4 year lawyer will demand.

7.       You will need to do A LOT of applications

In recent job hunting I applied for 25 jobs, had quite a few first round interviews, made it to the second round interview for 4 positions, and was offered 2 positions.

8.       You will attend second round interviews and not get the position

Just because you have made it to the final round of recruitment does not mean you will get the position. Even if you are in the final stages of recruitment, keep applying for other positions. In the end, you can miss out because of something completely arbitrary that is not a reflection on you at all. Take encouragement from the fact you made it to second round interviews – you are obviously doing something right to get that far.

9.       It is easier to get a job when you are currently employed

The longer you spend unemployed, the harder it can be to get a job. Do not be afraid to take a “filler” position or short term contract while you continue to job hunt. Recruitment agencies can be useful for “filler” positions, especially if you find yourself suddenly unemployed.

10.   As soon as you find yourself unemployed, try and get work straight away

Try not to spend too much time feeling sorry for yourself. Work your legal connections to try and get a bit of work as soon as you can. You might find the small firm where you worked as a paralegal during law school has some junior lawyer work they need help with. Even if it is just a few days a week, keeping a foot in the legal industry will help give you confidence to keep in the job hunting game and help ensure your resume doesn’t have any awkward gaps.

11.   Be prepared to explain “gaps” in your resume

When you go for interviews, make sure you have identified the weaknesses in your resume. Do you have nothing to show for 2013? What were you doing? If you can come up with a convincing narrative, you can turn this resume gap into an advantage. If you took a “gap year” half way through your degree and went travelling, your narrative could be that you took time off to plan your future, came back more committed to a career in law and achieved better grades from that point forward.

12.   Be prepared for the unexpected in your interview

If you are prepared for the unexpected, you will take anything unanticipated in your stride.

Real life example 1: I went for an interview where I was told on the spot I had to choose a coffee location for the interview. I was not familiar with coffee shops in the area. Lesson learned: make sure you are familiar with the local area of your interview.

Real life example 2: My interviewer had a sore back so had to stand while I was asked to sit down.

Real life example 3: In one interview I was quizzed on the Chief Justices of all the state Supreme Courts. I knew some but not all of the answers. If the unexpected situation or question occurs, try and remain calm and if you do not know the answer, the best option is usually to say you do not know, and quickly change the topic to something positive.

13.   Be prepared for questions about resilience and adaptability in your interview

I have consistently been asked in interviews to provide examples where I showed resilience. It is best to have an answer planned. Stick to examples from university and work, as personal examples from your personal life risk being inappropriate.

14.   Good grades are not enough

Most applicants for a position will have solid grades from law school. It is the additional qualities that you can bring to the role that usually get you the position. This could be your personality, your prior work experience or your hobbies, especially if you show an interest in the law outside of work.

15.   Look outside your “hometown”

Unless you are locked down by family commitments, you really need to look more broadly for junior lawyer positions. I found in Sydney, many lawyers limit their search to Sydney. The legal market is growing quickly in other areas such as Melbourne and Brisbane. There are also fantastic opportunities in unexpected places like Darwin. You really need to spread your applications as broadly as possible, especially if you are looking at a niche job. For example if you want to work at Crown Solicitors apply for Crown Solicitors in every state. When you are more experienced, you can be more selective about where you live.  

16.   Job hunting can be very awkward

You may be required to ask your current supervisor to be a referee. You may accept a position and have to withdraw two weeks into your job because you have been offered a position you cannot turn down. The sooner you accept awkward things will happen, the easier it will be to get on with it.

17.   The job market has changed since your supervisor was a junior lawyer

I have been told by several senior lawyers that they probably would not have gotten a job as a junior lawyer if they were dealing with the same conditions as the current crop of graduates. Don’t be disheartened by stories that older lawyers “walked” into their first job. These stories are antiquated. No one “walks” into their first job in 2015. 

18.   When you get a job you will lose control

I found the most difficult aspect of working as a law graduate was the complete loss of control over your day. Unlike university where you can plan what assignments you will work on during the day and take breaks whenever you want, junior lawyers do not control their own work or hours at a law firm. You could have barely any work the whole day and then be given 6 hours of urgent work at 5pm. This can be tiring to start with, but is a characteristic of almost all junior legal jobs.

19.   You will probably be paid award rate

Unless you are working at a top-tier firm, it is very likely you will be paid award rate as a law graduate. Do not expect to be raking it in. Be grateful to have a job and be getting legal experience.

20.   When you get a job, you will do a lot of trudge work

Junior lawyers predominantly engage in “unglamorous” law. At university, assignments are designed to be interesting to law students. At a law firm, work does not centre around how interesting it is for a law graduate. Chances are you will be working on due diligence or large litigation matters at some point.

Please share any “realities” of job hunting you think I have missed in the comments section.

Paying for a graduate position – is paying $22,000 to join a start-up law firm like adlawgroup worth it?

Would you pay $22,000 for a graduate job? That is what a new breed of start-ups is asking “employees” to pay in return for a two year contract, mentoring experience and legal work. They claim they are giving admitted law students who have no current employment prospects in the legal market an opportunity to obtain the crucial two years of legal experience. The reality seems different. To me, it seems these start-ups are preying on vulnerable graduates who already have a $50,000+ HECS debt from a combined law degree plus their admission to practice course. One of the biggest problems of paying $22,000 to work as a lawyer is that after you have finished your two year contract at the start-up, it will be just as difficult as before to find a real legal job, as a graduate may be seen to have “paid” for this legal experience. In this blog article I examine adlawgroup, a start-up launching in July 2015 asking graduates to pay $22,000 for their position. Graduates should think carefully before joining such a program.

What is adlawgroup?

Adlawgroup is a start-up to be launched in Adelaide in July 2015, advertised as a new “law firm” targeting graduate lawyers. They will be taking-up around 15 graduates initially and another 15 in September, with a view to gradually expand the size of the program. “Employees” pay $22,000 upfront to be part of the “getting started in law program”. The program runs for two years, though graduates can leave the program at any time if they obtain a legal job they want to pursue.

How do they advertise?

Adlawgroup advertises positions as though they are offering a normal paid graduate position. This is far from the truth. In the below advertisement, there is no mention at all that you have to pay $22,000 for the position.

How is the $22,000 two year fee justified?

Adlawgroup claim that the $22,000 covers the cost of a practising certificate plus the comprehensive continuing education program they offer. The cost of an annual practising certificate in NSW is $816. Over two years this would be $1,632. That means about $20,368 of the $22,000 is allocated to the “getting started in law” program which includes mentoring and continuing legal and professional development. Mentoring will be conducted by a panel of senior members of the legal and business professional. Adlawgroup claims that the firm will be self-funded through client fees, which implies none of the $22,000 is going towards running the firm. One must ask where the $22,000 is going? If it is going towards paying mentors, that is a very expensive mentoring experience when there are a host of free mentoring opportunities available during and after university.

How is the relationship characterised?

Is adlawgroup an employer or an education provider? Adlawgroup claims it is a hybrid between employment and higher education. This is all very good, except in the eyes of the law, the business will need to be characterised in one of the categories. The adlawgroup website claims that graduates will receive their pay through the fees charged to clients. It is rare for junior lawyers to be paid on a commission basis. Junior lawyers working at traditional law firms are paid a fixed rate, which is set at Award rate or above. If the lawyers working at adlawgroup are characterised as employees, they will need to be remunerated by at least the Award rate. It is possible that adlawgroup will pay employees the Award rate plus commission based on fees charged, but at this point it is difficult to tell. To me, the relationship appears to have more “educational” characteristics, as graduates pay a fixed fee of $22,000 to receive mentoring, a learning program and professional development.

Other problems that may arise from paying for your graduate position:

1.       Ratio of experienced lawyers to graduates

Adlawgroup will be predominantly staffed by junior lawyers supervised by expert senior practitioners. This is very different from the traditional graduate experience where you will be the most junior in a team of five to ten more senior practitioners who all have the experience to mentor you and guide your legal development.

2.       Who will the clients be?

There are quite a few mentions on the adlawgroup website that graduates will be engaged in providing “quality and value” to clients. The firms is said to offer a full range of legal services at competitive rates, but that gives little indication of who the clients will be. There is some indication the clients will be individuals, as it is stated “young people, in particular, will be targeted to encourage them to seek professional advice and support in a timely manner”. This would not be ideal if you are aiming to work in commercial practice where clients are medium to large sized companies. As a graduate it is very important to know what kind of clients and what areas of law you will be working in, as your next employer will look at the clients you were working for to see whether you have the requisite experience for that job. For example, the difference between working for individuals, small companies, large companies, and public sector clients is vast and leads down very different career paths. The website is almost solely targeted at recruiting graduates, which very little information on clients, which is concerning. The website of a normal law firm is targeted almost solely at clients, with a very small section on recruitment.

3.       Reputation

There is a risk adlawgroup graduates would be perceived as having “purchased” their graduate jobs. In addition to adlawgroup being a start-up which is new to the industry, graduates from adlawgroup will have to do a lot of explaining in any job interviews they can get afterwards as to what adlawgroup is and why they could not get a traditional position after university. Adlawgroup is taking students from a variety of academic backgrounds. This could lower the general reputation of graduates from adlawgroup given the traditional emphasis on grades at law school in the job market up to five years post-graduation.

4.       Getting a job post adlawgroup

Adlawgroup claim that their graduates will have an advantage in a tight legal market. While it is true that after 2 years you will be eligible for an unrestricted practicing certificate, I query whether traditional law firms will consider the two years experience at adlawgroup commensurate to two years experience working at a traditional law firm. For example, if you are competing for a position as a junior lawyer advertised as a 2yr PQE job, an employer is much more likely to choose a lawyer who had been working at a traditional law firm with medium and large sized companies than a lawyer who has paid for their initial experience at a law firm with mixed clients.

The fact start-ups like adlawgroup exist is part of a wider problem

Those in the legal industry are well aware that in some Australian states such as South Australia and Victoria, the number of law graduates is in excess of the number of graduate lawyer positions available. Universities make a significant profit on law degrees, and have increased the number of positions available, due to the demand driven Commonwealth funding system. There is no easy answer to the problem of excessive law graduates. If numbers in law degrees was set to just above the ability of the legal industry to absorb graduate lawyers, students who want to study law but not practice law would miss out. However, the current system, which produces a large excess of law graduates does produce desperation to the extent that junior lawyers would be willing to pay $22,000 for a first job.

Is it time for more law graduates to consider in-house roles?

What is an in-house lawyer?

In-house lawyers are directly employed by the company they work for. They undertake the legal work and assist with risk identification and management for the company. Often sitting physically close to the CEO, COO and management team, in-house lawyers are often expected to provide immediate or timely legal advice on a wide range of issues. In-house lawyers will assist a wide range of teams within the company including operations, human resources and marketing. While this blog post is about private sector in-house opportunities, there are also public sector in-house opportunities at both a state and Commonwealth level.

What is so good about working in-house?

1.       Focus on one client

Having only one client means that in-house lawyers can build impressive client knowledge. Parts of the company rely on in-house lawyers before they can progress, and being able to see the impact of your work is satisfying. Client access to lawyers can cause high-pressure environments, as in-house lawyers often have nowhere to hide as they are physically close to their internal clients. However, working on the commercial front line can be immensely rewarding, as the impact of your advice can be seen.

2.       Close contact with the business side of the company

This close contact with the company means in-house lawyers have a real influence on the business side of the company. In-house lawyers are the legal part of a diversified wider environment within the company. Working in-house is a great option for lawyers who want to work with a wide range of non-legal professionals.

3.       A wide variety of legal work

While the General Counsel usually specialises in advising the CEO, COO and management team and managing large emergencies, a junior lawyer working in-house will be expected to help out in all areas including litigation, debt recovery, employment and industrial relations, competition law, and intellectual property. In-house lawyers must develop an ability to advise on a wide range of areas, and this can be a welcome challenge for some.

4.       A small team environment

 Teams in-house are generally smaller than specialist teams in law firms and offer the opportunity to work more closely with colleagues.

5.       Independence and self-reliance

In-house lawyers are generally very busy trying to keep on top of the regulatory requirements of the company and their usual case load from internal clients. As a junior lawyer you will receive supervision, but will be required to be much more autonomous than if you were working at a law firm. This is great for building self-confidence and the ability to problem solve.

6.       Rewarding to see outcomes of your work

Being able to see the outcome when problems are resolved with your legal input can be very positive and lead to high work satisfaction. In law firms you can miss out on this key step, as outcomes are reported to you second or third hand through your supervising Partner. Those working in-house have also reported higher feelings of collaboration that come with working intensely with internal clients to achieve common company goals.

7.       Involvement in legal issues from an early stage

Law firms often only become involved in legal issues at a late stage. Working in-house, you can be involved in the legal process from the very beginning of an internal legal inquiry to the end.

8.       Requires forward thinking and creativity

With the increased focus on risk management, in-house lawyers will be expected to foresee certain legal problems and assist to stop them before it happens. Forward thinking and creative thinking are encouraged.

Watch out for:

1.       Conflict between your duty to your employer and your duty as a lawyer

It is possible that while working in-house there can be a conflict between your duty to your employer and your duty as a lawyer. Rule 4.1.4 of the NSW Professional Conduct and Practice Rules 2013 provides that “A solicitor must also:...avoid any compromise to their integrity and professional independence”. In the event of a conflict between a duty to the employer and a duty as a lawyer, the duty you have as a lawyer must prevail.

2.       Legal professional privilege

For legal professional privilege to apply to communications, an in-house lawyer must have been acting in their capacity as legal advisers. Keep this in mind if you are starting in an in-house role, as at times you may be asked to work on matters that could be better described as business matters rather than legal matters. Legal professional privilege may not apply to these communications unless specific steps are taken.

Debunking the myths:

Myth 1: Working in-house is less work than working at a law firm

While the nature of the work you are doing may vary, most in-house lawyers work just as hard or harder than lawyers at law firms. Working in-house is definitely not the softer or easier option.

Myth 2: Working in-house will give you better access to life outside of work

Working in-house will not necessarily give you better work/life balance than working at a law firm. Work/life balance varies between different in-house teams as much as it does between different law firms and practice groups.

But are there in-house positions for law graduates?

Traditional in-house teams are headed by a General Counsel who has 20+ years of experience and is usually ex-top tier where they were Managing Partner for 10 years before moving in-house. The rest of a typical in-house team is made up of experienced lawyers who spent time working at a law firm before moving in-house. These more experienced lawyers are usually poached from panel law firms. Traditionally there were no real roles for law graduates or junior lawyers in-house.

This has now changed due to two trends:

1.       The increasing size of in-house teams. There has been a trend to increasing the size of in-house teams as the regulatory load on companies has become more complex and there has been an increase focus on risk and liability; and

2.       The increasing budgetary constraints on in-house teams. Post GFC, companies have tightened budgets in most departments including the legal budget. In-house teams have become more selective when briefing panel law firms and do more of the legal work themselves. They are also more likely to brief barristers directly in litigation matters. This has led to in-house teams needing to do more “ground-work” and has led to an increased need for junior lawyers and law graduates in in-house teams.

In-house opportunities do exist for law graduates. You just have to be vigilant in finding the opportunities. Unlike graduate recruitment for law firms that happens in March/April annually, in-house opportunities are advertised whenever the company has a need. Companies as diverse as the Commonwealth Bank of Australia, Metroll Group, David Jones, and Lend Lease have all recruited in-house junior lawyers or graduate lawyers this year. Due to the competitive nature of these positions, recruiters usually expect their graduates to be admitted and have prior legal experience. If you are thinking of applying for an in-house role, be sure to regularly check Lawyers Weekly jobs, Linked In jobs, as well as Seek and other general recruitment websites for openings. Good luck!  

Prospects for Law Graduates – is it as hard as graduates are saying to land a legal job?

If you are a law student or law graduate you would no doubt have heard about the difficulties of landing a graduate job. It is anecdotally acknowledged that this is the hardest time since the recession in the early 1990s for law graduates. Lawyers Weekly have reported on the difficult legal recruitment market in numerous articles. In recent years, even the mainstream media have commented on the difficulties law students face in finding employment in the law after they graduate. But is this speculation actually true?

In July 2014 the Law Society of New South Wales established a working group to investigate and report on the employment prospects for law graduates. The resulting report titled “Future Prospects of Law Graduates: Report and Recommendations” was released this week and can be found at https://www.lawsociety.com.au/community/forlawstudents/LawGraduatesReport/index.htm  

The most shocking thing about the report is that the data analysed appears to show that NSW law graduates are not exceeding new entrants into the legal profession, suggesting there is not an oversupply of law graduates.

Data used to determine if there is a law graduate oversupply

The working group established a model to track the movement of NSW law students through the system. The model assumes that the Class of 2013 were admitted in 2014 and commenced practicing as lawyers in 2015. If we take the Class of 2013, the model shows there were 2,555 law graduates that year. 2,267 went on to be admitted. 2,970 new practising certificates were issued to lawyers who were admitted within the last 12 months. From this data it appears there were sufficient opportunities for law graduates to obtain employment as a lawyer and that graduates are not exceeding demand.

It is interesting to note the reduced number of law graduates from NSW universities in 2012. The number dropped from 2,245 in 2011 to 1,945 in 2012. I was at university at the time and knew several people who delayed their graduation because of the perceived terrible graduate job market. If enough students delayed their graduation by under loading subjects, this would explain the increase in graduates in 2013 and the perceived oversupply of graduates in 2014 and 2015. However, the data used by the working group shows that even for the 2103 cohort, there were sufficient legal opportunities. 

(Table taken from page 10 of the report)

It is acknowledged in the report there are several issues with this model. I also add my own observations:

·   1. Not everyone follows the pattern of graduating one year, being admitted the next and starting practice the year after. A substantial amount of graduates would be admitted and obtain a practising certificate the year after graduation. A substantial number of graduates may go through the process at a slower rate.

·    2. It is assumed that a graduate would not obtain a practising certificate unless they were working as a lawyer due to the expense of obtaining the practising certificate. It is assumed new practising certificates issued equates to graduates converted to employed lawyers.

·   3. The figures show practising certificates issued to solicitors admitted for one year or less. Not all practising certificate holders will have recently graduated.

·    4. Quite a few graduates from interstate come to NSW to work and this practising certificate figure could include non-NSW graduates. The admission figures could also include non-NSW students who study College of Law in NSW with an eye to being admitted and being employed in NSW.

Common complaint: JD students have flooded the market

A common complaint among undergraduate law students is that the introduction of JD courses in NSW has “flooded” the current legal market and that JD students have “stolen” jobs traditionally taken by undergraduates. The working group’s data also debunks this myth, as JD students were included in the above table and the data suggests there were sufficient legal jobs for all graduates from NSW law schools. The table below shows all the accredited law degrees in NSW.

(table taken from page 12 of the Report)

The proliferation of JD courses in the past 10 years is apparent. However, the number of students the JD courses have added to the total number of law graduates is less than 350. This is less than the increase in the number of law undergraduates the past few years. The report includes a useful table showing the increase in student numbers. The worst culprits for the increase in student numbers appears to be the University of Sydney and University of Western Sydney undergraduate courses.

(table taken from page 13 of the Report)

Then why is there anxiety about graduate prospects?

I am not 100% convinced by the data used by the working group. The difficulties of law graduates finding employment seems real. However, if there are sufficient graduate law jobs than what has caused all the anxiety?

The working group found that there was significant anxiety amongst the legal profession about the lack of employment opportunities for law graduates. The level of anxiety among law students themselves was found to be very high. Even if employment prospects are high, obtaining a graduate job can be stressful, so it is difficult to tell if the level of stress among law students has increased in the last few years due to increasing difficulty of obtaining a graduate job or if law students have always found it stressful obtaining a graduate job. Again, more data is needed.

Conclusion

One of the working group’s key recommendations is that more accurate data is obtained to track law students’ graduate destinations both within and outside the legal profession. The last time an in-depth study on the employment of law graduates was done was in 1989 when the Centre for Legal Education published a detailed study on graduate career destinations. The working group also recommended that a national approach be taken, especially given increasing concerns about excessive law student numbers in Victoria and Queensland.

My favourite recommendation is that it is important law students are provided with accurate information about the state of the legal market. Anecdotal evidence and uncertainty does not help law student anxiety. Solid evidence and an in-depth study will not only aid in the transparency of universities taking on more law students but assist in reducing stress associated with obtaining graduate employment. If it the data from the working group’s report is proven correct and there is not an oversupply of law graduates, this will help reduce the stress law students feel about their future.