US Law Firms Increasingly Favour Experienced Lateral Hires Over Fresh Graduates Amid Changing Recruitment Trends

US law firms hired more associate lawyers from rival firms than from graduating law school classes in 2025, according to a new report by legal analytics firm Firm Prospects, signalling a growing preference for more experienced practitioners.

The study found that overall associate hiring fell by 5 per cent from 2024 levels, with firms making 24,441 associate hires last year. Of those hires, only 38 per cent were law graduates entering directly from university — down from 46 per cent in each of the previous two years. By contrast, lateral associates accounted for 49 per cent of 2025 hires, up from 43 per cent in 2024 and 42 per cent in 2023.

The shift, coupled with a 10 per cent increase in partner hiring among the 200 highest-grossing US law firms, “points to an industry-wide focus on experience, as law firms’ bias towards hires they believe can ‘hit the ground running’ and contribute more quickly to the organisation,” the report said.

While the report does not identify a single reason for the increased reliance on lateral hiring, it suggests several possible factors. Among them is the growing adoption of legal technology, including artificial intelligence, which is increasingly taking over tasks traditionally handled by junior lawyers.

The report also found that the decline of the traditional on-campus summer associate recruitment process, in favour of direct applications, has complicated law firm hiring practices. At the same time, return-to-office mandates may be encouraging associates to switch firms, while the growing number of states adopting the Uniform Bar Examination has made it easier for lawyers to practise across multiple jurisdictions.

A sharp rise in government lawyers moving into private practice also contributed to the growing trend towards experienced hires, the report noted. The number of lawyers leaving the U.S. Department of Justice and the Securities and Exchange Commission more than tripled in 2025 compared with 2024, while departures from government roles remained elevated during the first quarter of 2026.

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