Pic: U. Chicago
It seems so good, doesn’t it? According to the lead of a recent AP story, “The unemployment rate fell in 17 states and the District of Columbia last month, a positive sign even as the pain of joblessness remains widespread.”
Don’t believe the hype. Even lawyers can subtract when it’s only double-digit numbers. Are we not supposed to notice that that must mean the unemployment rate increased, or at best was flat, in more than 30 states? In fact, it was up in 36 states and territories, more than twice as many as it was down in, but the AP is just drunk on White House Kool-Aid apparently, how else to explain that spin?
Other outlets aren’t so optimistic (or bedazzled, depending on your level of cynicism). Initial jobless claims were actually higher than expected for the week, at 576,000, and the overall unemployment rate was flat at about 9.4% (we touched briefly last week on why that number is particularly misleading right now). That rate is still expected to hit the psychologically-dreadful 10% level by early next year. Still, the S&P 500 had a nice little run for the week, finishing up about 40 points.
Law-firm news wasn’t terrible this week, although the “week without a layoff” streak ended at one. Details after the jump.
Unfortunately, firms are back to their old ways of not releasing numbers or publicly confirming the layoffs. Curtis Mallet-Prevost & Mosle (which is apparently now branding itself as the non-descript “Curtis”) has reportedly laid off 10-15% of its corporate associates.
Fish & Richardson, which has been more-forthcoming in the past (announcing layoffs of 35 lawyers and 85 staff in May, and another 30 staff in January), has laid off corporate lawyers but won’t provide a solid number. Back in January, they also stealthed approximately 40 additional lawyers. We were hoping they’d stick to the full disclosure, but according to our sources, they’re keeping quiet. It looks like they’re scaling way back on corporate and focusing on their strength: IP.
More firms have thrown in the towel on next summer. Between deferred start dates and already-underworked junior associates, they’re not even trying to hire for next summer. Loeb & Loeb (which sounded ominously like they might not have a program again in New York) and Howard Rice are among the most-recent to go this route. Eckert Seamans has recently been getting reported for not having a program, but that’s old news (and a good move – they only hire experienced lawyers).
Hell, many firms are throwing in the towel on THIS summer. Offer rates are dropping, so even those “lucky” few who got jobs this summer and counted their blessings that at least they likely had jobs , can’t even count on that. Offer rates are plummeting. Even those students who were smart enough to be on their best behavior probably figured they just had to keep the salad and entree forks straight and they’d have a job (albeit starting a year and a half or so after graduation). Paul Hastings and its 75% offer rate is getting the headlines, but numerous other firms are offering at rates well below historical.
At least ze Germans aren’t taking this lying down. RollOnFriday is rolling up the scoops on the Magic Circle firms’s troubles in Deutschland. Two of Allen & Overy’s Frankfurt associates are bringing administrative claims that they were laid off then their positions were filled, which is apparently verboten in Germany. As if that weren’t bad enough, Clifford Chance is being sued by two of its former partners who were demoted. Apparently, it’s pretty difficult to lay people off over there.
It wasn’t all bad, though. A story that was almost laughable for the amount of breathless coverage it got made the rounds this week: Brown Rudnick is ruining many of its new associates’ vacation plans by actually making some of them start on time. Pretty much every legal-news site was just giddy over the prospect of a firm with enough work to roll back its deferrals.
Also, an administrative note, unless there are some big developments, we’re going fishing for the rest of the summer. We’ll be back after Labor Day and will catch up on what should (hopefully) be a particularly quiet period.
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Yup, unfortunately many no-offers this week. I guess we won't really know the extent of it until Nalp comes out.
As anyone can tell you the ‘Official’ Employment Report a/k/a U-2 released for general consumption is a ‘feel good’ report and does not reflect the actual numbers as it once did in 1982/83 when the unemployment numbers were much higher. Reagan and Clinton both screwed with the numbers to make themselves and us feel better and to show the world how great a job their administrations were doing to combat unemployment. Today one needs to look at the U-6 report and that number is 17%.
The truth is not out there.
I love "stealthed" as a verb.
Good stuff, Law Shucks! (Mr. Shucks?)