As Profits Dip, Firms Could Face ‘Increasingly Difficult Decisions’ Ahead

High expenses, high associate pay and lower profits per partner may force law firms to make “increasingly difficult decisions” this year and beyond, according to a new report.

The 2023 Report on the State of the Legal Market, published Tuesday, concluded that after a 0.1% drop in demand last year, Big Law will likely rely on significant rate hikes to maintain profits this year and next year.