by Alison Thorne LLB LPC Fellow of the Institute of Recruitment Practitioners Director and Legal Recruiter
LEX Recruitment Ltd www.lexrecruitment.co.uk
Economics and politics are NOT my thing, so when I was asked to prepare an article to discuss the impact of the Eurozone crisis on legal recruitment, I found myself feeling slightly light headed and a bit giggly. I would far rather give an update on how my horses are enjoying this mild winter. In fact, anything EU or Euro usually puts me catatonic and when this topic was first mooted, in my mind, a naked ski down a mogul field, in full public view, seemed more preferable.
As in any year, 2011, saw highs and lows, highs notably being two Royal Weddings and lows the constant worry of a double dip recession. The beginning of last year saw Japan subjected to an earthquake, tsunami and nuclear meltdown. Also Afghanistan has rumbled on with our Soldiers still far from home putting their lives at risk. We have also seen “extreme shopping” (an Ab Fab quote – I can’t claim that!) in the form of the inner city riots and looting. However, we should be minded to keep things in perspective. Whilst the Euro crisis and economy cause us concern and hardship, health and family should always be the most important factors in our lives.
We are almost blasé about the roller coaster of Eurozone headlines; sovereign debt crisis, bailouts, Prime Ministers stepping down and rescue plans. More recently the headlines are discussing plans to form a new Treaty to have an inter-governmental agreement to tackle the crisis. The consensus opinion is that European leaders are bracing themselves for a turbulent 2012, with widening deficits that force borrowing but increasing austerity measures which slows growth. The country to watch in terms of recovery for 2012 is Italy. As well as managing its budget deficit and debt, they are advocating longer work hours and reforming laws which have so far rendered Italian businesses unproductive and uncompetitive. These measures should stimulate economic growth, sending a clear message to the financial markets.
The matter in hand is to consider how our legal recruitment is to be affected by the Euro crisis. It is a point in fact that employers have been “hoarding” skilled workers and that unemployment for 2011 is not as high as it should have been. Learning from the mistakes of the last recession, companies have been slow to lay off key workers hoping that the upturn is not too far off. Preferring to pay the cost of retaining staff, through cutting hours and pay decreases, as opposed to the high cost of recruitment and training costs once the economy has improved.
The employment Minister Chris Grayling claimed in early January that, “the high unemployment figures are the consequences of the crisis in the Eurozone”. However, the Institute for Employment Studies have countered this by saying that the “labour market has been in the doldrums since well before the Eurozone problems kicked off”. However, whichever came first, whether it’s the chicken or the egg, harm will have been done in terms of eroding confidence. Unpredictable and weak markets reduce short term visibility which affects employer and candidate confidence.
As a recruiter placing legal fee earners to the region I can say there are the recruitment market is still fluid, candidate flow is slow, with employees less likely to consider a move unless it’s for personal reasons. I do not expect to see many redundancies as most of the firms have consolidated their positions on staff levels. If there are to be any redundancies I would expect them to be amongst the less qualified staff leaving the more qualified and managerial staff unaffected.
And to a new year and new beginnings. Since 2009, we have seen a few Firm merger s and buyouts and even some complete new start ups, namely BBL Family Law, a specialist family law practice and KB LAW Solicitors, criminal and litigation solicitors. Ross Burrows, barrister and partner of KB LAW says that, “Ultimately getting the basics right is essential to our growth and development. We are not trying to grow too quickly. However, in order to pursue our development plans we have recently had to recruit a senior solicitor - (through LEX Recruitment).”
I am looking forward at worst to a steady year and at best, a complete blinder of a great year in terms of business. I hope you think so too! Health, Wealth and Happiness for 2012. Alison@lexrecruitment.co.uk.
A very interesting read. Unemployment figures in the UK appear to have turned a corner this year, here's hoping we can build on this in 2013 too.
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