Legal Economics

Law Firm Economics

Entry-Level Hiring at Large US Firms Dropped 7.5% in 2025 — First Decline Since 2014

BY INSIDE PRACTICE · AUGUST 13, 2026 · 1 MIN READ

NALP's August 5 report on entry-level hiring at large US firms (500+ lawyers) found a 7.5% decline in 2025, the first decrease since 2014 and a drop of 540 new associate positions — against a backdrop of declining summer associate classes in both 2023 and 2024 that signaled the reduction was coming. The pattern suggests firms are deliberately thinning the entry-level pipeline, consistent with BARBRI's finding that AI is compressing the task-volume that once required large junior associate cohorts, and with the LFFI's observation that equity partner demand fell while non-equity partner and associate demand rose — meaning firms want experienced leverage, not large junior classes. K&L Gates' simultaneous reduction of roughly 10% of its allied professional workforce (approximately 130–170 people in accounting, marketing, and IT roles) further illustrates that cost discipline is not limited to billable headcount.

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