Day: 2015/12/09

BLS Projects Only 43,800 New Lawyer Jobs by 2024

On Tuesday, the Bureau of Labor Statistics released its employment projections for the next cycle: 2014-2024.

In 2014, the BLS estimated that there were 778,700 lawyer positions (as opposed to discrete lawyers) in the United States. This figure includes self-employed lawyers. In 2012, the Employment Projections Program found 759,800 lawyer positions, so there has been some growth. According to the Current Population Survey, in 2014, 1.132 million people worked as lawyers in the United States. The discrepancy between the CPS and the EPP has existed for some time. In their respective contexts, both figures are correct.

The BLS projects future employment trends in part to help job seekers evaluate career choices, and the projections play a significant role in the BLS’s Occupational Outlook Handbook. Here is an illustration, from various sources, of law-school graduate and lawyer growth since the 1980s.

Lawyer & Graduate Estimates (1983-2024)

Between 2014 and 2024, the BLS estimates a total 157,700 net lawyer jobs will be created. Of those, only 43,800 can be attributed to economic growth over the decade. The rest, 113,900, consist of net occupational replacements. Last year, I wrote about how the BLS plans to revise its replacement methodology, switching from a net replacement measurement to a gross one. When applied to lawyers, it appeared more jobs would be created annually than under the current methodology. The BLS has not yet adopted the new methodology.

Unfortunately—and despite my warnings—some law professors concluded that a higher replacement rate meant better job prospects for law school graduates. However, this position fails to account for turnover—the rate at which lawyers leave the law for different occupations or leave the labor force entirely. In fact, in a prototype analysis of the new methodology, the BLS estimated that over ten years one lawyer in four would move to a different occupation. By comparison, the rate for physicians was only 15 percent. It is unlikely that every lawyer moving to a different occupation will find work in a field that requires the skills and knowledge obtained in law school or pays accordingly.

The BLS typically divides the ten-year employment projection by ten, suggesting that only 15,770 lawyer positions will be created each year until 2024. Despite falling law-school enrollments, but with the number of applicants possibly rising, it does not appear that the economy will be able to absorb all new lawyers completing law school. Indeed, in 2014, 43,800 people graduated from ABA law schools, but it’s likely that fewer than 40,000 graduated in 2015. The number of people admitted to the bar by admission and diploma privilege—a measure of new lawyer growth—was 54,820 in 2014, but this includes many duplicates.

The number of law school graduates and new bar admits far exceed the projected lawyer job growth rate. Consequently, it appears that although interest in law school has waned, far more people are attending law school than the profession can employ.

My opinions of J.D. advantage jobs can be found here.

My comprehensive explanation of the various measures of law-school grads and lawyers can be found on this page. It also should contain any links I may have omitted in this post.