Corporate and property lawyers are being overstretched as firms remain fearful of a double-dip recession and refuse to recruit new staff to deal with an upturn in work, the Gazette has learned.

At a national meeting of the Junior Lawyers Division (JLD), which represents lawyers from trainee level up to five years’ post-qualification experience, regional representatives relayed concerns from junior corporate and property lawyers that their departments are understaffed and that, as a result, they are being overworked.

The news came as the UK recession was officially declared over on Tuesday, but economists warned that the marginal economic growth recorded in the last quarter had failed to extinguish fears of a double-dip recession.

Property and corporate practices have been among the worst hit by redundancies since the start of the economic crisis.

Michael Burd, leading employment lawyer and partner at City firm Lewis Silkin, said: ‘Given the number of firms [that] made cuts, it would be surprising if some didn’t go too far. But there are just as many who, arguably, didn’t go far enough.’

One corporate lawyer in the aviation field told the Gazette that there is a ‘climate of fear’ among corporate lawyers. ‘Corporate lawyers across the board are really overstretched,’ he said. ‘Firms made redundancies due to recession, but as work is picking up existing lawyers are being totally overworked. Firms won’t hire anyone because of fears of another dip in the economy, and if the lawyers complain, partners’ attitudes are that they are "lucky to have a job."’

JLD chair Heidi Sandy said: ‘It’s a problem and it’s going to get worse before it gets better. Until the job market picks up, if you’re a corporate or property lawyer, where else are you going to go?’

Alex Blues, a consultant at PA Consulting, said: ‘Firms are competing ferociously for work on price. One response is, work harder with fewer people.’