As the U.S. economy becomes more complex, legal advice has become a bigger factor in business management. More companies require law firms that specialize in particular areas of law.
Additionally, individuals are more likely to seek legal advice as both states and the federal government tighten or loosen the regulation of personal conduct.
New government policies and actions in the last two years have prompted more legal uncertainty, heightening the role of lawyers in business and social matters, a trend that will continue for years.
Surprisingly, the number of people working in the legal field has not kept pace with other professions. From 2010 to 2025, that number increased just 7% — and mostly in the last two years — while the personnel in CPA offices grew 33%, and there was a 40% increase in employees in engineering offices.
It’s likely that this smaller increase for law firms is due to the very big efficiencies provided by computer technology to access and analyze legal cases and developments. Most law offices are small, with an average of just 6 employees, so efficiency is extremely important. Now, artificial intelligence (AI) will provide firms with even better productivity.
Law offices in general have cash management problems because expenses and revenues often aren’t well matched. This is especially true when chunks of revenue depend on a successful court outcome.
The practice of law varies from state to state, and the type of law practiced can vary by metro area. Not surprisingly, the largest law firms (20 employees on average) are in Washington D.C., serving companies that do business with the government; that’s also true in state capitols. Delaware hosts large law firms that specialize in corporate law because so many companies incorporate there. New York has many firms that specialize in securities law.
The overall demand for legal services in a local market is directly reflected in the average number of law firm employees in that area. Our chart shows recent developments in 15 local markets: 10 where demand for legal services was up sharply in 2025, and five where the number of employees dropped.
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