Darkening Skies in Legal Sector - August 2025 Jobs Report

 The good times keep getting better for some equity partners at firms such as at Paul, Weiss and Skadden. 

A dynamic niche business is the un-merger. That is, failed "marriages" such as that of Kraft and Heinz require plenty of legal services. The Wall Street Journal calls them the "buzziest breakups." Law firms in that category can ignore all the agita about if the standard M&A market will fully recover. 

That's one part of the story of the Law of Supply and Demand in the legal sector.

The other is about the employees, that is non-shareholders, who tell me that they are feeling increasingly insecure. Even if busy, right now.

The August 2025 Jobs Report shifts to job loss after six months of job gains. In August, 200 disappeared.

More and more law firms are quietly conceding that generative AI will or has already reduced demand for junior lawyers. It isn't that gen AI makes lawyers obsolete. It's that fewer of them are required. Last March, in Lawyer Monthly, chair of Paul, Weiss Brad Karp brought that whispered reality out of the closet.

Well, it's turning out that the impact of Gen AI is even for high-value tasks. A&O Shearman, working with Harvey, created a tool for partner-level analysis of antitrust, cybersecurity and more. Yes, de-equitization could be in the cards even for equity partners in 2025.

So, in some ways demand could be replicating 2008 - 2009. 

Those I coached had to figure out how to leverage their knowledge base and skills (or concealing their knowledge base and skills) for earning income not related to practicing laws. Some of their choices back then such as journalism and car sales seem not so promising currently. 

But lots of other stuff is opening up. 

By mid 2026, OpenAI will be operating OpenAI Certifications. That trains all levels of AI expertise. Yes, individuals can enroll, as well as entire businesses. 

No longer marginal is shifting to the trades. At age 36, a knowledge worker became a plumbing apprentice. A professional I coached invested $7K to get licensed in long-distance driving. 

Then there's starting up micro businesses which could take off. 

The path to continuing to earn a good living is to be pro-active. Is it worth several months severance to be in cringe-state anticipating being axed? In 2008 - 2009, those who waited for termination wound up entering a glut market, even for survival jobs. In the wait their confidence shredded. 

The meme at the Toledo Museum of Art is See Differently.

Thrown off your game, maybe the first time since you started working? You made all the right moves and then the world moved in another direction.

Intuitive Coaching. Special expertise with transitions, reskilling and aging. Psychic/tarot readings, upon request. Complimentary consultation with Jane Genova (Text 203-468-8579, janegenova374@gmail.com). Yes, test out the chemistry. There’s no risk.