Aggressive hiring by US firms has forced big City firms to raise their game in the battle for talent, ?according to a global recruitment consultancy.


An annual survey published last week by Robert Walters showed that salaries continued to increase in 2007 as the legal job market remained strong and demand for the best candidates outstripped supply.



It revealed that the UK's five magic circle firms had increased their salary bandings for all associates and improved additional benefits in an effort to stem the flow of lawyers moving to US law firms expanding in the UK.



The report showed salaries at US firms were still much higher than those at UK firms. A newly qualified solicitor at a top UK firm will earn £50-65,000, while they can expect to earn £85-95,000 in the London office of a US firm.



Chris Hickey, managing director for legal at Robert Walters, said: 'The UK's magic circle is feeling the threat from big US legal firms as they are expanding in the UK.



'With more lawyers also moving in-house, this is driving salaries and employment packages upwards, as employers attempt to recruit the best talent across the board.'



Catherine Baksi