Growth in the seemingly downturn-proof legal services sector is set to slow next year, according to an authoritative study published today. The latest Gross Legal Product Index from data company LexisNexis Legal & Professional predicts that the sector will grow by 2% in 2024, down from 2023’s 6% growth.

The slowdown follows the exceptional post-pandemic years: demand for services grew by 22% in 2021.

However, the latest edition of the GLP Index, which pulls historic data from hundreds of sources to predict future demand across the legal market, reveals market challenges may finally be catching up with the legal sector. These findings align with other recent events in the legal market, such as several high-profile law firms considering redundancies.

When looking at specific areas of the law, the Index predicts strong growth across property (7%), immigration (7%) and restructuring and insolvency law (6%). Both property and immigration law rebounded in the previous GLP Index after several years of decline. 

Demand for competition (5%) and risk and compliance law (1%), on the other hand, will flatten next year after experiencing steady growth throughout 2022 and 2023. Practice areas that are challenged include criminal law, which is predicted to see negative growth (-3%) for the third year running, and employment law (-2%).

Report editor Dylan Brown said: 'Considering the geopolitical and macroeconomic headwinds that have battered the professional services industry for the last 18 months, subdued growth is an overwhelmingly positive message to be sharing. Recent growth speaks more to the legal sector’s resilience, ability to innovate when needed, and drive to power forward than it does to its impregnability.'

 

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