Q3 Law Firm Lateral Hiring Reflects Cautious Optimism

By Xiumei Dong | October 10, 2025

Lateral attorney hiring at the nation's largest law firms continued to climb in the third quarter of 2025, signaling that the legal talent market is gradually stabilizing after a sluggish start to the year, according to a new report from legal intelligence provider Firm Prospects.

Lateral additions at the 200 highest-grossing U.S. law firms rose to 2,983 in the third quarter, a 5.6% increase from 2,826 in the second quarter, according to Firm Prospects data shared with Law360 Pulse. The rise marks the second consecutive quarter of growth. Still, overall hiring remains below last year's pace, down 17.3% from the 3,607 lateral moves reported in the third quarter of 2024.

Adam Oliver, CEO of Firm Prospects, said the recent uptick in lateral hiring reflects growing optimism in the legal market but noted that many firms remain cautious amid broader economic uncertainty. He noted that while the job market appears stable, concerns over tariffs and geopolitical tensions are prompting many firms to adopt a "wait-and-see" approach until the outlook becomes clearer.

Looking ahead, Oliver said he is cautiously optimistic that the upward trend will continue. As markets hold steady and deal flow improves, he expects firms to gain more confidence in adding talent to meet client demand, even if overall growth remains measured.

"There is not going to be a big jump," Oliver said, adding that while hiring is unlikely to return to 2024 levels soon, the market appears to be moving steadily in the right direction.

Associates once again accounted for the largest share of lateral moves in the third quarter, with 1,656 hires, up 10.1% from the second quarter. Counsel hiring also increased, rising 6.4% to 483. Partner hiring, however, declined 7.6% to 707.

Recruiters said the recent growth in lateral hiring largely reflects rising demand for associates, particularly in corporate practices, as firms respond to a busier deals market and renewed client activity. Partner movement, they noted, has remained relatively steady year-over-year, driven more by individual career decisions than by broader market shifts.

"We're starting to see firms, in particular, looking for [mergers and acquisitions] talent and at a pace that we haven't seen in a while," said Michelle Fivel, a founding partner of legal recruiting firm Hatch Henderson Fivel LLC.

Fivel added that demand is especially strong in mergers and acquisitions, capital markets and finance, while general commercial litigation remains "very healthy." She also noted early signs of renewed activity in real estate practices.

Kirsten Keegan Vasquez, partner and vice president of legal recruiting firm Major Lindsey & Africa, said her firm saw an 82% increase in associate placements in the third quarter from the previous quarter and a 5% rise compared to the same period last year. She attributed the surge to firms preparing for an increase in deals and litigation activity, noting that many are staffing up ahead of potential interest rate cuts and improving economic conditions after a period of caution.

Keegan Vasquez said hiring momentum remains strong across corporate, litigation and finance practices, with top firms signaling continued demand for talent. She noted that midsize firms and boutiques are also stepping up lateral recruiting, driven by both business needs and candidates seeking greater flexibility or specialized opportunities.

"From my conversations directly with top management at the biggest law firms, they are energized and want to hear from us more often when top partners are on the market," Keegan Vasquez said, noting she anticipates firms' hiring appetites will remain strong in the months ahead.

According to Firm Prospects, litigation once again led all practice areas in lateral hiring during the third quarter, up 15.4% from the previous quarter to 974 hires. But even with that increase, litigation hiring remains 21.1% below its level a year earlier, when firms added 1,234 litigators.

Hiring in corporate practices remained largely steady, slipping 2% to 431 hires, while labor and employment saw a stronger rebound, rising 15.1% to 335. In contrast, intellectual property, real estate and banking all recorded declines, down 10.9%, 8.7% and 17.3%, respectively, from the previous quarter.

Kirkland & Ellis LLP made more lateral hires than any other top 200 law firm, adding 85 attorneys in the third quarter, according to the report. It was followed closely by Lewis Brisbois Bisgaard & Smith LLP, which brought on 84; Gordon Rees Scully Mansukhani LLP, with 81; and Wilson Elser Moskowitz Edelman & Dicker LLP, which added 80.

Law firm hiring from government agencies slowed in the third quarter, with the top 200 firms adding 243 attorneys from public-sector roles, down from 319 in the previous quarter. Recruiters noted, however, that while more government lawyers are entering the market, demand from firms has not kept pace with the available talent.

Firm Prospects' data show that most of the recent government-to-firm hires came from the U.S. Department of Justice, U.S. attorney's offices and the U.S. Department of Health and Human Services. Latham & Watkins LLP, Lewis Brisbois and Jackson Lewis PC were among the most active firms recruiting lawyers with government experience.

For government attorneys navigating the transition to private practice, Katherine Loanzon, managing director at Kinney Recruiting LLC, advised patience and persistence. She encouraged attorneys to keep networking, share their expertise and build their professional brands, noting that opportunities will follow with time and visibility."You really need to be resilient at this point," Loanzon added, emphasizing that perseverance and continued networking are essential as these lawyers navigate a highly competitive market.

--Editing by Alanna Weissman and Lakshna Mehta.