First-year hiring drops for the first time in over a decade
The country's largest law firms hired fewer law school graduates last year than in any year since 2011. The decline could set the stage for a deeper plunge in hiring this year and next, according to historical trends.
There's a new factor in play beyond the usual economic cycles. Law firms' own expectations about how artificial intelligence will affect their staffing needs are also driving the reduction, according to Bloomberg Law's analysis.
What the numbers show
The hiring slowdown marks a reversal after years of steady growth in first-year associate classes. Big Law firms have historically used first-year hiring as a pipeline for future partner talent and a way to manage workload during busy periods.
When firms cut first-year classes, the effects ripple through law schools, lateral markets, and practice group staffing for years. The current decline suggests firms are reassessing how many entry-level lawyers they will need as AI tools handle more routine legal work.
AI's role in hiring decisions
Law firm leaders have begun speaking openly about how AI could reduce demand for junior associates. Tasks like document review, due diligence, and basic legal research - traditionally assigned to first-years - are increasingly handled by AI systems.
That shift doesn't mean firms will stop hiring entry-level lawyers entirely. But it does mean class sizes may shrink, and the skills firms expect from new graduates may change.
Why this matters for legal professionals
Law students and junior associates should pay close attention to how firms are adjusting hiring targets. If AI reduces demand for traditional first-year work, new lawyers will need to differentiate themselves through skills that AI can't replicate: client communication, judgment, courtroom experience, and strategic thinking.
For current law students, the message is clear: technical legal knowledge alone may no longer be enough to secure a Big Law position. Demonstrating comfort with AI tools and the ability to add value beyond what software can do will matter more in coming hiring cycles.
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