Recruiters get ready for better times
The continuing fallout of the global financial crisis, combined with legislative change, is expected to lead to a surge in demand for insolvency, employment and litigation lawyers this financial year as confidence returns to the legal market.
A survey of leading recruitment firms conducted by The Australian has revealed the practice areas they believe will be in most demand by private practices and in-house employers in the next 12 months.
All eight recruiters surveyed agree that the high number of corporate collapses and restructures resulting from the financial downturn means insolvency lawyers will be highly sought after.
“Undiscovered bad debts, negative growth overseas, global organisations going into administration and the credit crunch should see a sustained need for insolvency lawyers,” Hudson Legal practice manager Stuart Ablethorpe told The Australian.
A rise in redundancies combined with the Rudd government’s new industrial relations regime will also create new positions for employment lawyers.
“My main focus is private practice in Melbourne, and employment seems to be the number one area that is in the most demand,” Dolman manager Greg Plummer said.
Mahlab Recruitment managing director Lisa Gazis said employment lawyers would also be in demand due to reviews of executive employment packages, which were placing a new emphasis on linking bonuses to performance.
An increase in contractual disputes, boardroom stoushes and shareholder clashes will keep litigation lawyers busy this financial year.
“As practice areas such as finance, mergers and acquisitions and property began to crash and burn last year, most types of litigation generally grew and continue to grow,” Jacinta Fish Legal partner Rochelle Rothfield said.
At Perth’s Lavan Legal, soaring demand for litigation expertise has prompted the firm to employ six litigation lawyers in the past eight months, taking its litigation team to around 60.
Deputy managing partner Dean Hely said more litigation matters were now likely to reach trial because people could not afford to settle.
“Now people are really trying to ensure that they’re getting every dollar out of what they’re owed,” he said.
“On the other side in terms of defending litigation, some people are using it if they haven’t got the funds to pay or if they believe they’ve been misled or deceived.”
Stimulus packages announced by both state and federal governments will mean strong demand for infrastructure and construction lawyers, and recruiters say the flow-on effect will last beyond this financial year. “Despite the current uncertain market, we have found steady demand for construction and infrastructure lawyers,” Ms Rothfield said.
“If the federal and state governments continue to support these projects in order to keep the economy stable, we would expect this demand to continue into the next financial year and beyond.”
Energy and resources work is also tipped to be in demand, but mainly in the resource-rich states of Western Australian and Queensland.
Mr Ablethorpe said the expected approval of the Gorgon liquefied natural gas project off Western Australia’s north coast would be a big boost to the local market. “This will require ongoing input in construction, and infrastructure lawyers and energy and resources lawyers,” he said.
Some recruiters believe the emerging area of environmental law will continue to grow over the next 12 months, due to the Rudd government’s planned emissions trading scheme.
“Sustainability will continue to be a big issue for corporations and businesses which are keen to organise and develop their businesses and practices to ensure sustainability and to respond to legislative and shareholder demands,” Ms Gazis said.
Shearn HR Legal director Julianna Shearn, who specialises in the Perth market, said lawyers with expertise in professional indemnity and family law would also be in demand.
“Family law’s always there and is probably becoming far more fast and furious with families breaking down. As the money breaks down, families break down as well,” she said.
Mr Plummer said the credit crunch had resulted in a significant decrease in the demand for banking, finance and corporate lawyers, but he was hopeful that these areas would soon recover.
“We’re starting to see the signs of more growth in those areas,” he said. “I talk to my clients all the time, (and) compared to speaking to them in January or February, there’s a lot more optimism in relation to the way things are moving.”
Ms Gazis said the market was beginning to stabilise but it was still taking lawyers longer to find jobs, compared to the same time last year.
“If you look at the top-tier firms, the opportunities there aren’t as great,” she said. “They’re larger structures and have had to respond to the market much more.”
