Recruitment Market Update: H1 2025 - Private Practice (London)

The first half of 2025 has seen a cautiously optimistic uptick in legal recruitment activity in London. While overall market sentiment remains subdued, objective data shows a measurable increase in the number of roles being advertised by law firms.

A Market Showing Signs of Life

The number of roles advertised in H1 2025 was 20% higher than in H1 2024, and this ensured that the general upward trend in the number of new roles being advertised per month and the number of active roles advertised per month has continued since the beginning of 2024.

Chart showing the total number of roles and the number of new roles being advertised each month by law firms on their career pages

There were 40% more new corporate and banking roles posted in H1 2025, compared to H1 2024. However a large proportion of these came in January when there was a big uptick in the number of new roles. Unfortunately the uptick was not sustained and the number of overall active roles has been generally falling since then.

Chart showing the number of active and new Corporate or Banking roles advertised each month by law firms on their career pages

Specific Practice Area Activity

Despite the overall market being cautious, some practice areas look to be busier than you might expect. In H1 2025, Construction, Employment, Funds, Pensions, and Tax all showed stronger-than-average hiring levels. In contrast, the three largest practice areas—Banking, Corporate, and Litigation—continued to post fewer new roles than their share of the market would suggest, indicating continued caution in core transactional and contentious areas.

Chart showing the number of new roles in H1 2025 across the different practice areas as a percentage of the total number of new roles and compares this to the % of associates in London that focus on this practice area.

Key Factors to Watch in H2 2025

Several trends will be helpful to monitor in the second half of the year:

• Number of new corporate or banking roles: Corporate and Banking recruitment activity can be a bellwether for the wider recruitment market. If the number of new roles in these areas suddenly picks up, this could be a signal a step change in the market.

• NQ retention rates: These are a useful indicator of bottom-up hiring demand. Low retention may suggest reduced attrition at the associate level or reduced growth.

• Attrition: Firms currently experiencing lower than average attrition could see a sharp rise in departures if market conditions improve, resulting in unexpected replacement hiring needs.

• US firm expansion: After Paul Weiss’s aggressive London build-out in 2023–24, the market is alert to any similar growth moves by other US firms, which could impact lateral hiring and associate movement across the City.

Outlook

While hiring remains cautious overall, there are signs of real activity—especially in sectors like Construction, Employment, Funds, Pensions and Tax. If economic conditions improve in H2, and firms are confident of increased future work flow then the recruitment landscape could shift more positively and rapidly.