​As we inch closer to the middle of 2024, the legal industry, like other sectors, is undergoing significant changes due to economic pressures. The beginning of this year has witnessed internal resource restructuring and hiring freezes across the public sector and some larger corporates. These changes manifest in various challenging ways for legal professionals, impacting career progression and job security.

In addition to potential redundancies, it’s becoming common for departing team members not to be replaced. This situation leaves existing personnel with heavier workloads, often without corresponding compensation adjustments. Simultaneously, pay freezes (or small increases) are becoming a reality across the legal field, affecting both legal professionals and support staff. Market turbulence also constrains the availability of growth in junior positions in some practice areas and advancement opportunities for others.

Given the current job market uncertainties, legal professionals working in-house or in the public sector feeling insecure in their roles should consider transitioning their skills to the private sector. The private sector, despite its challenges, presents viable opportunities. Law firms and private sector companies, especially in regions of growth (e.g. Auckland, Tauranga and Wellington), are known to be actively hiring – in Wellington, the private sector often works with government sector clients where there can be greater transferability.

For those looking to make a move, areas such as commercial law, resource management, family law, and litigation are particularly receptive to skills honed in the public sector or an in-house legal environment.

Despite widespread talk of pay freezes and restructuring, the situation is not entirely bleak in the private sector. Movement-up salary bandings and potential pay increases are still on the table for those within firms. This indicates that, while the pathway may be tumultuous, financial and professional advancement opportunities remain available.

2024 poses unique challenges for legal professionals due to economic and organisational shifts.

CoLegal, with our team of expert Legal recruiters, is here to support you if you are considering a strategic transition into the private sector. We can help you explore a successful transition to one of our clients, leveraging the skills and experience you've honed in your current role.