Law

Despite many recent challenges, the U.S. Department of Labor predicts that “demand for legal work will continue as individuals, businesses, and all levels of government will need legal services in many areas.” Employment is expected to grow by 8 percent from 2022 to 2032, which is faster than the average for all careers. More than 1.3 million lawyers were employed in the United States as of January 1, 2023, according to the American Bar Association (ABA). The total number of legal professionals (including paralegals, legal secretaries, judges, law professors, law firm managers, etc.) is probably 2.1 million or higher.

Approximately 75 percent of lawyers work in private practice, according to the ABA. About 49 percent of private practices are run by solo practitioners. Eight percent of lawyers work for government agencies, 8 percent for companies, 3 percent in the judiciary, 1 percent in education, 1 percent for private associations, and 1 percent in legal aid/public defense. A small, but growing, number of lawyers, paralegals, and other legal professionals work for large accounting firms that provide legal-related services (discovery, document review) to clients, secondment firms that provide legal staffing services, and law and business advice companies.

In May 2022, about 315,650 legal professionals were employed in top legal markets, according to the U.S. Department of Labor. The largest number were employed in the following cities (and their surrounding suburbs):

• New York City: 89,700
• Washington, D.C.: 46,710
• Los Angeles: 38,510
• Chicago: 27,200
• Miami: 26,680
• Philadelphia: 18,450
• Boston; 17,980
• Dallas; 17,570
• San Francisco: 17,110
• Atlanta: 15,740

The combined annual revenue of all firms was about $381 billion in 2023, according to IBISWorld—up from $262 billion in 2009. (The legal services market worldwide was valued at $839 billion in 2023, according to Statista.com.) The U.S. legal services industry is very fragmented; the 50 largest firms generate only about 20 percent of total revenue. Gross revenue at the top 100 global law firms (known as the Global 100) was $130.8 billion in 2022—up 2.7 percent from 2021, according to The American Lawyer. The 10 largest law firms by revenue in 2022 were:

1. Kirkland & Ellis
2. Latham & Watkins
3. DLA Piper
4. Baker McKenzie
5. Skadden, Arps, Slate, Meagher & Flom
6. Dentons
7. White & Case
8. Sidley Austin
9. Clifford Chance
10. Ropes & Gray

Kirkland & Ellis had revenue of $6.04 billion, and Latham & Watkins, which ranked second on the list, had revenue of $5.45 billion.

Law firms are located both in the United States and abroad. In fact, many of the top U.S. firms have offices in dozens of countries. Baker McKenzie, for example, has offices in nearly 50 countries, and Allen & Overy boasts offices in 43 countries.

The major role of the legal industry is to provide legal services to companies, government agencies, individuals, and nonprofits.

D&B Hoovers reports that “civil law practices account for about 90 percent of industry revenue; criminal law practices account for about 5 percent. Of civil practices, services to businesses account for 44 percent of industry revenue; other civil law, 14 percent; civil negligence, 12 percent, real estate law, 8 percent; and labor and employment law, 5 percent.”

There are several major organizations for those working in the legal industry:

• The American Bar Association (ABA) is the largest member organization in the legal profession and the largest in any industry. It has more than 400,000 members and more than 3,600 sections, divisions, forums, and other specialized groups that represent the interests of lawyers in general and those of attorneys in various specialty areas. Members include lawyers, law students, graduate students, legal educators, paralegals, legal assistants, law librarians, law office administrators, and legal consultants. The ABA establishes ethical standards, accredits law schools, and provides continuing-education opportunities, among other services.
• The Federal Bar Association provides support for lawyers and judges involved in federal practice. It publishes The Federal Lawyer and offers continuing education opportunities. More than 19,000 federal lawyers, including 1,500 federal judges, are members.
• The Association of Corporate Counsel (ACC) is a “a global legal association that promotes the common professional and business interests of in-house counsel who work for corporations, associations, and other organizations through information, education, networking, and advocacy.” It has more than 46,000 members, who are employed by over 10,000 organizations in more than 80 countries. Members can join one or more practice area-based networks. The ACC publishes The ACC Docket.
• NALS...the association for legal professionals represents paralegals, legal assistants, legal administrators, office managers, lawyers, and other legal professionals. It has many state and local chapters and offers certification and continuing education.
• Phi Delta Phi is a professional fraternity for law students. It was founded in 1869, making it the oldest legal organization in the United States. Phi Delta Phi “promotes legal ethics and academic distinction in the law schools and the profession at large.” It has more than 130 active chapters—called Inns—at law schools in the Western Hemisphere.