Recent data from the Association of Professional Staffing Companies (APSCo) reveals a significant drop in job applications within the legal sector, despite consistent demand for talent.
This trend points to a growing skills shortage at a crucial time for the industry.
According to the latest insights, provided by Veritone Hire, applications for permanent roles in the legal sector fell by 32% between August 2023 and August 2024. Contract roles saw a similar decline, with applications dropping by 19% during the same period. While vacancies also decreased, the fall was only marginal at 4%, indicating that demand for legal professionals remains stable, if not increasing.
This drop in candidate interest comes as the legal sector reported a 13% growth last year, suggesting that demand for skilled professionals is likely to rise further. The growing disparity between vacancies and applications signals a widening skills gap at a time when the sector is poised for further expansion.
Skills Shortages Set to Challenge the Legal Sector
Ann Swain, Global CEO at APSCo, commented on the findings, highlighting the challenges facing the sector:
“The legal sector has had an interesting year so far, with vacancies noting only incremental changes, despite major external events in the UK. However, while there has been a seemingly stable demand for skills amidst reports of an expected uplift in the sector, applications have plummeted, which will ring alarm bells for employers and recruiters.”
The legal market, which has experienced steady growth, now faces a shortage of qualified professionals to fill essential roles. Swain points out that this trend could worsen as the demand for legal expertise intensifies, particularly in the wake of potential changes under the new UK government.
Increased Competition for Legal Talent
With the number of applicants dropping and vacancies remaining stable, recruiters and employers in the legal sector are expected to face increased competition for talent. Swain emphasised that while employers are reacting by offering higher salaries to attract candidates, this approach is not a sustainable long-term solution.
“As we have historically seen, boosting pay rates is not a sustainable approach,” Swain warned, suggesting that the sector needs to explore alternative strategies to attract and retain talent. The report indicates that employers may need to invest more in training and development to address the widening skills gap and ensure that their workforce can meet the evolving demands of the legal sector.
Future Challenges for Recruitment in the Legal Sector
The data highlights a significant challenge for the legal sector as it seeks to maintain its momentum in the face of growing skills shortages. With the job market already tightening, the arrival of a new government could further reshape the landscape, potentially increasing the demand for legal services across various sectors.
As the sector braces for these changes, the issue of attracting qualified talent will become even more pressing. Employers and recruiters may need to rethink their recruitment strategies, focusing not only on competitive pay but also on offering career development opportunities and flexible working conditions to attract a wider pool of candidates.
