Recruitment of assistant solicitors has seen its first sustained increase since 2007, research has revealed, in a sign that the jobs market is improving.

A study by legal recruiters Hughes-Castell showed that the number of vacancies for assistants rose over the second and third quarters of 2009, marking the first sustained increase since 2007. During the first quarter of 2009, vacancies stood at just 5% of 2007 levels.

However, London assistant solicitors’ salaries fell by 8% on average this year, following a rise of 4% in 2008 and 10-15% in 2007 and 2006. The drop in salaries among UK City firms has further opened the pay gap with US firms.

Typical salaries at the top 15 UK firms this year were £60,000 for newly qualified (NQ) lawyers, rising to £97,000 for lawyers with five years’ post-qualification experience (PQE). Meanwhile, top New York firms paid NQs $160,000 (£95,500) on average, rising to $245,000 (£145,500) after five years’ PQE.

Among mid-market UK City firms, typical salaries were £56,000 for NQs, rising to £82,000 after five years’ PQE. Smaller UK City and West End firms paid NQs £48,000 on average, rising to £68,000 after five years’ PQE.

Scott Gibson, director of Hughes-Castell, predicted that while the job market for junior lawyers should continue to improve over the next 12 months, any increase in NQ salary rates would be unlikely, even if the economy performs better.

‘We had a boom in 2006/07 but from late 2008 there was almost no market for junior lawyer jobs,’ he said. ‘The market is recovering, but it is unlikely to go back to previous levels.’

The Hughes-Castell London Private Practice Salary Survey was completed by 67 commercial law firms in the City and West End. It was supplemented by meetings with partners and HR professionals, and salary information on the Hughes-Castell database.