Eastern Region Recruitment Prospects 2013 -v- The Economy

By Alison Thorne LLB LPC  Fellow of the Institute of Recruitment Practitioners  Director and Legal Recruiter at LEX Recruitment Ltd    www.lexrecruitment.co.uk

 It is brilliant to be asked to contribute to this publication, but it really is a double edged sword, especially when the subject I am asked to write about is not within my normal spectrum of consciousness.  Economics and projected overviews leave me wishing I was in the Gobi Desert after a 50 mile run.  I now find myself speed eating sesame breadsticks and making sure the wine bottle is at the other end of the house.

Anyone reading the papers will know that the Global Economic recovery has been slow due to problems within the developed countries affecting exports to the emerging and developing economies.  The IMF are projecting global growth for 2013 to be 3.6%, weakening from a previous projection of 3.9%.  The UK economy is estimated to grow by 1.1%, again weakening from a previous projection of 1.4%.  There is recent data to support a promising industrial output with exports increasing substantially.

We are fortunate in the Eastern Region in that we already have the highest national employment rate at 74.7%.  The unemployment rate for people aged 16 and over for the UK was 7.8% and the East of England had the third lowest rate at only 6.8%.  Price Waterhouse and Coopers report an improving outlook for growth and employment across the UK and consider the Eastern Region’s prospects favourably.  All in all, positive statistics for us.  However, we are still facing turbulent times and PWC advise that businesses should remain “agile” regarding their strategies in order to cope with slow growth in the UK and react to evolving global economic conditions.  Businesses trading with the Eurozone should be particularly cautious.

It is likely that the service industries will lead the recovery to 2013 and manufacturing businesses should look to exporting to the BRICs to maximise on growth opportunities.  The UK are currently behind the US, Germany and France in exporting to India and China.

The employment market has been buoyed up by an increase in part-time jobs, allowing employers more flexibility and reduced costs.  This has a negative effect on workers and the State as they are then left with a reduced income and dependent on benefits.  Pay increases have been reduced, affecting consumer spending, the knock on effect being house prices and an increase in household debt levels. 

The Business services and finance sector reported an output for 2012 at 1.5% with a projected increase to 2.7% output for 2013.  Good news for the legal sector.

Legal recruitment for the Eastern Region for 2012 has been consistently active.  Firms have been recruiting throughout the year into mainstream sectors such as residential conveyancing, private client, matrimonial, and criminal.  Niche sectors such as shipping, corporate, high end private client and agriculture have also been active. 

We have also seen several firms merge, close and start-up.  Redundancy levels appear to have reduced.  Lawyers are still cautious about moving firms these days and generally need a tangible incentive or significant reasons to consider a change.   

For the future Firms need to be able to adapt to reflect the needs of their clients.  We are fortunate to be in a region with such diversity and enterprise.  I am seeing law firms respond to this diversity by recruiting multi skilled lawyers.

Firms that have managed to squirrel away funds and remain cash rich might want to consider hanging onto it.

Looking forward to 2013, I would project that we will continue to have a positive legal recruitment environment.  Howard Whitehead, Manager at Simply Law Jobs believes we have turned a corner and candidates seem more active. He expects this trend to continue into 2013.

Stephen Drake the Managing Principal at Steeles Law reports that, “The economy alone will not be the only driver for legal recruitment over the next few years.   The ongoing changes to the legal profession should also ensure an active recruitment market.  Traditional law firms will continue to review the services they offer and to change focus where commerciality dictates, whereas the new providers of legal services will need to secure experience.”