Entry-Level Hiring at Major US Law Firms Declines After Decade of Growth

Entry-level hiring at major US law firms declined for the first time in more than a decade, according to a new report on law school graduate employment.

Law firms with 500 or more lawyers hired 7.5% fewer new associates in 2025 — the first decline since 2014, according to a report by the National Association for Law Placement (NALP). The number of law graduates securing federal government positions fell by 37%, while public interest legal jobs declined by nearly 14%.

The combined drop reflects an entry-level legal jobs market affected by disruptions to federal employment under the Trump administration, reduced public interest funding and potential long-term shifts in hiring practices driven by generative artificial intelligence (AI), the report said. Legal employers hired around 2,700 fewer graduates overall compared with the previous year.

The report did not provide details on the impact of AI, although industry experts have predicted that the rapid adoption of legal AI tools could reduce demand for large numbers of entry-level lawyers who traditionally handle routine legal research and drafting tasks.

Despite these challenges, graduates from the law school class of 2025 recorded the second-highest employment rate on record, behind only the previous graduating class. Around 93% secured jobs, with 85% taking positions requiring bar admission, helped by a smaller graduating class size.

Law firms with more than 500 lawyers collectively hired 540 fewer new associates, indicating a shift in their staffing strategies. Entry-level associates, whose salaries exceed $200,000 at the largest US firms, typically undertake legal research and prepare memos, briefs and other documents.

A December report by Citigroup and Hildebrandt Consulting found that most law firms expected to prioritise hiring experienced associates from other firms over entry-level recruits through 2027.

The decline in hiring by large firms was preceded by weaker summer associate recruitment in 2023 and 2024. Large firms also hired fewer summer associates in 2025, suggesting that entry-level recruitment among the 2026 law school graduating class could also fall, NALP said.

The federal government recorded the steepest decline in legal hiring in 2025, which NALP attributed to the recruitment freeze introduced at the beginning of the second Trump administration, resulting in some law graduates having their job offers withdrawn.

Cuts by the Department of Government Efficiency to hundreds of non-governmental organisations also forced public interest employers to reduce hiring or shut down operations, the report said. The nearly 14% decline in public interest legal jobs among graduates marked the first year-on-year fall since 2016.

Overall, 6,588 law graduates joined the largest law firms, which remained the single biggest employment destination for new lawyers.

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