Recruitment Market Update – May 2026 - Signs of Stabilisation After April’s Slowdown

After the noticeable cooling in April, the London legal recruitment market showed signs of stabilising in May.

There were 116 new roles advertised across the market, an increase from the 96 roles recorded in April, although still below the very active levels seen earlier in Q1.

While it is too early to say whether April represented a temporary pause or the start of a more cautious period, May’s figures suggest that firms are still continuing to invest selectively across a broad range of practice areas.

Below is a breakdown of activity across the key practice areas.

Corporate: Activity Starts to Pick Up

Corporate recorded 10 new roles in May, an increase from the 6 new roles seen in April.

Whilst still below the particularly active start to the year, this represents a positive shift following a quieter March and April.

Given Corporate is often viewed as one of the better indicators of wider transactional confidence, activity levels over the next few months will be worth watching closely.

Banking & Finance: A Quieter Month After Consistent Demand

Banking & Finance recorded 8 new roles in May, down from 14 in April and 16 in March.

Although this represents a softer month, Banking & Finance has been one of the most consistently active areas of the market over the last 12 months and there continues to be demand across different areas of finance.

The question will be whether May represents a temporary easing or the beginning of a more normalised level of activity following a strong period of hiring.

Commercial / TMC: One of the Most Active Areas in May

Commercial / TMC saw 9 new roles advertised in May, making it one of the busiest practice areas during the month. Many of the roles focused on commercial contracts, technology, outsourcing and broader digital transformation projects.

Employment: Consistent Levels of Activity

Employment remained steady with 8 new roles in May, exactly in line with April.

While activity has reduced slightly from the 11 new roles seen in March, Employment continues to be one of the more resilient areas of the market, with a consistent flow of new opportunities.

Insurance Litigation: Demand Continues

Insurance Litigation continued to be an active area with 9 new roles in May.

Although slightly down on April, when 13 new roles came onto the market, demand remains elevated and the number of opportunities available to lawyers with insurance litigation experience continues to be one of the notable themes of 2026.

Construction: Continued Demand Across Contentious and Non-Contentious Roles

Construction remained active, with 10 new roles across Construction and Construction Litigation.

This continues the trend seen throughout the year, with firms looking for lawyers across both transactional construction and disputes practices.

Real Estate: Activity Eases

Real Estate saw 5 new roles in May, down from 8 in April.

Whilst activity has slowed from the stronger levels seen at the beginning of the year, the overall level of opportunities available in 2026 remains ahead of the equivalent period in 2025.

Restructuring & Insolvency: Slight Reduction but Still Active

Restructuring & Insolvency recorded 3 new roles in May, down slightly from the 5 roles recorded in March and April.

Activity remains steady, although we have not yet seen a significant increase in hiring despite continued discussion around a potentially more challenging economic environment.

Overview

May’s total of 116 new roles suggests the market regained some momentum following April’s slowdown.

While activity has not returned to the very strong levels seen at the beginning of the year, the increase in new opportunities suggests firms continue to have confidence in underlying levels of work and the need to add associate capacity.

As always, recruitment activity is only one indicator of market sentiment, but the willingness of firms to continue opening new roles across a broad range of practice areas suggests that demand remains relatively resilient.

The coming months will provide a clearer indication of whether April represented a temporary pause following a strong first quarter or whether activity is beginning to settle at a more normalised level for the remainder of 2026.

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Breakdown by Practice Areas

Transactional Roles:

At the beginning of June, we identified the following number of London based legal jobs that were being advertised by law firms on their careers’ pages in the below practice areas:

• Banking & Finance:  43 roles (three being PSL roles) - 10 with US firms, 26 with UK international/global firms and seven with City/regional firm.  There were eight new roles added to firms’ careers’ sites during May.

• Corporate:  23 roles (one being a PSL roles) - eight with US firms, 11 with international firms and four with City/regional firms. There were 10 new roles added to firms’ careers’ sites during May.

• Restructuring/Insolvency:  15 roles - four with US firms, six with UK international/global firms and five with City/regional firms). Three of the roles were new, having been added to the firms’ careers’ site since the beginning of May.

Number of live London transactional roles advertised directly by firms

Advisory Practice areas:

At the beginning of June, we identified the following number of London based legal jobs being advertised by law firms on their careers’ pages in the below practice areas:

• Antitrust/EU/Competition: Four roles - one with a US firms and three with UK international firms. Two of the roles were new having been added to firms’ careers’ sites during May.

• Employment - 40 roles (including five PSL roles) - four with US firms, 14 with UK international firms and 22 with City/regional firms. There were eight new roles added to firms’ careers’ sites during May.

• FS/Regulatory - Six roles (including one PSL role) -  All six with UK international firms. There was two new roles added to a firms’ careers’ sites during May.

• Funds - Eight roles (including one PSL role)  Three with US firms and five with international firms.   One of the roles was new, having been added to the firms’ careers’ site since the beginning of May.

• Incentives - Five roles.  One with a US firm and four with UK international firms. There were no new roles added to firms’ careers’ sites during May.

• Pensions - 13 roles (including four PSL roles) - Eight with international firms and five with City/regional firms.  There were three new roles added to firms’ careers’ site during May.

• Tax - 14 roles (including one tax litigation role and one PSL roles) - two with US firms, seven with international firms and five with regional/City firms. There were two new roles added to a firms’ careers’ sites during May.

Number of live London Advisory roles advertised directly by firms

Litigation:

At the beginning of June, we identified the following number of London based legal jobs being advertised by law firms on their careers’ pages in the below practice areas:

• Commercial Litigation - 18 roles. One with a US firms, 10 with international firms and seven with regional/city boutiques). Five of the roles were new, having been added to the firms’ careers’ site since the beginning of May.

• Real Estate Litigation - five roles - one with a UK international firm and four with City /Regional firms.  One of the roles was new since the beginning of May.

• Insurance Litigation - 31 roles. 21 with international firms and ten with city/regional firms. Nine of the roles were new, having been added to firms’ careers’ site since the beginning of May.

• Personal Injury (including defendant PI and clinical negligence) - 13 roles.  Eight with international firms, and five with City/Regional firms).  Five of the roles were new, having been added to firms’ careers’ site since the beginning of May.

• Specialist Litigation - 21 roles - nine with international firms and 12 with city/regional firms.  Five of the roles were new, having been added to the firms’ careers’ site since the beginning of May.

Number of live London Litigation roles advertised directly by firms

Construction, Planning and Real Estate:

At the beginning of June, we identified the following number of London based legal jobs being advertised by law firms on their careers’ pages in the below practice areas:

• Construction – 21 roles, five with international firms, 16 with City/regional firms).  Five of the roles were new, having been added to the firms’ careers’ site since the beginning of May.

• Construction Litigation - 19 roles.  Nine with international firms and 10 with City/Regional firm).  Five of the roles were new since the beginning of May.

• Planning - Four roles.  Two with international firms and two with City/regional firms).  One of the roles was new since the beginning of May.

• Commercial Real Estate - 21 roles (including one PSL roles). One with a US firms, 11 with international firms and nine with City/regional firms).  Five of the roles were new, having been added to the firms’ careers’ site since the beginning of May.

Number of live London Construction, Planning and Real Estate roles advertised directly by firms

If you are interested in an objective view of what is happening within your specific practice area visit www.therackle.com and contact us to see how we can help.