Law Firm Expenses Surge, Dampening Outlook for 2022 | The American Lawyer - The American Lawyer
What You Need to Know
- Law firm demand remains high, according to a new report, but personnel and overhead expenses are rising.
- Direct expenses increased 8.4% in a year-over-year comparison during the 4th quarter of 2021.
- The industry saw 11.4% growth in average associate compensation.
Strong demand and productivity continue to propel the legal industry to new highs, but crushing expenses during the final part of last year have created some drag on the outlook for Big Law in 2022.
Overhead and talent costs increased noticeably in the final quarter of 2021, according to the most recent Peer Monitor Index report from Thomson Reuters, and those costs are expected to continue increasing as office returns become more concrete and law firms continue to pay more for in-demand associates.
Want to continue reading?
Become an ALM Digital Reader for Free!
- Free access to 1 article* every 30 days
- Access to the entire ALM network of websites
- Unlimited access to the ALM suite of newsletters
- Build custom alerts on any search topic of your choosing
- Search by a wide range of topics
Already have an account? Sign In Now
*May exclude premium content
source: https://www.law.com/americanlawyer/2022/02/14/law-firm-expenses-surge-dampening-outlook-for-2022/
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.