According to the latest LexisNexis Gross Legal Product (GLP) Index report, the legal market grew by 3% during 2022 despite the economy being impacted by rising inflation, soaring energy prices and financial sanctions. In particular, the practice areas of restructuring and insolvency, tax and competition law all made a heavy contribution.
The GLP Index includes detailed insight on growth figures across 12 practice areas as well as overall legal sector findings. It forecasts the legal sector as a whole will grow by a further 6% throughout 2023.
The index predicts competition law will be the fastest growing practice area this year, as post-Brexit legislation becomes more actionable and the Competition and Markets Authority takes a stronger role on merger controls.
Risk and compliance work is also likely to expand, with cybersecurity, data regulations and financial sanctions increasing the threat levels to organisations. The index anticipates a rebound for both property and immigration.
However, criminal lawyers and private client lawyers are likely to experience challenges, and both practice areas have experienced negative growth for the second year running.
The report’s editor, Dylan Brown, said: ‘Law firms have proven their resilience to achieve growth during economically challenging times once again.
‘Unlike their professional services peers, the legal sector has been relatively slow when it comes to technology adoption and innovation, yet law firms excel when it comes to driving a profit. Many law firms increased their billable hour targets for lawyers last year, and a growing number are offering alternative fee arrangements to appeal to cost-conscious clients.
‘While business is by no means booming, law firms will likely continue to experience similar growth levels seen before the pandemic hit.’
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