UK in-house legal recruitment market update Q4
Corporate and commercial
As Q3 wraps up, the in-house legal market across commerce and industry remains steady, with signs of positive momentum heading into the final stretch of the year. While macroeconomic uncertainty continues to shape hiring decisions, legal teams are adapting—and in many cases, expanding—with strategic intent.
Q3 saw a notable increase in employment law roles, particularly at the mid and senior levels. This uptick is driving competition to secure top talent, especially in sectors facing workforce transformation. The 2–6 PQE range continues to dominate, with strong demand for commercial and tech-savvy lawyers. These roles are often business-facing and require agility across contract negotiation, data, and digital transformation.
We’ve seen high activity in technology, energy, education and media with lower activity in hospitality, telecoms and retail. Early signs point to a stronger Q4, with continued demand for employment and commercial lawyers at the mid and senior level. Budget constraints and competition for top talent will continue to shape hiring decisions and flexible resourcing will be a useful option for those struggling to find budget or the talent required for permanent headcount.
Contact Georgia Morgan-Wynne
Banking and financial services
The in-house legal hiring market across financial services and professional services in the UK remained active in Q3 2025, with overall hiring volumes showing a healthy year-on-year increase. While the market continued to grow, the pace of hiring was notably affected by the summer months, which introduced a natural slowdown in decision-making and recruitment processes. Delays in approvals and extended timelines were common, particularly across senior and strategic roles.
Despite this seasonal dip in momentum, financial services hiring still recorded a strong uplift compared to Q3 2024. The most pronounced growth came from asset management, which saw a marked increase in legal hiring, likely driven by continued regulatory developments and fund activity. Insurance also experienced a moderate rise, maintaining its position as a steady source of legal demand.
Private equity and venture capital hiring continued to expand, reflecting the sustained appetite for legal expertise in fund structuring and investment execution. These areas are increasingly active, though hiring cycles were slightly elongated over the summer period. Traditional financial services roles remained consistent, with hiring levels holding steady year-on-year, while investment and corporate banking showed similar stability.
Fintech hiring saw a slight decline, which may reflect a more cautious approach to scaling amid broader market conditions. Meanwhile, professional services hiring remained flat, with no significant change in activity compared to the previous year.
Overall, while Q3 was shaped by seasonal factors that slowed the pace of recruitment, the underlying demand for in-house legal talent across financial services remains strong, particularly in areas tied to capital markets, private capital, and regulatory change.
Contact Nikki Newton
Interim update
Last quarter, the legal interim market continued to adapt to changing business priorities. We’ve seen a clear shift in hiring strategies, with organisations increasingly favouring daily rate interim roles over traditional fixed-term contracts. This move reflects a growing appetite for flexibility and cost control, as businesses look for ways to access specialist expertise without committing to long-term headcount.
The numbers tell the story, with interim instructions surging by 333% year-on-year, while fixed-term contracts have fallen by 21%. Many of these interim roles are fractional or part-time, allowing companies to stretch budgets while still securing the legal support they need.
Sector activity has been particularly strong in education, where regulatory and governance demands remain high, and in gaming and technology, where commercial, IP, and data privacy expertise is in demand. Insurance and boutique financial services firms are also leaning on interim talent to manage regulatory change and transactional work, often on a project basis.
The trend is clear, businesses are prioritising agility and value, and interim legal professionals are playing a critical role in helping them navigate complex challenges without the constraints of traditional hiring models.
Contact our interim team
Regional in-house legal hiring
Q3 has shown a cautiously optimistic trajectory across the UK’s regional in-house legal market. While broader economic and political uncertainties continue to influence hiring strategies, we’ve seen notable growth in key regional hubs—particularly Manchester, Bristol, Birmingham, and Leeds—where demand for legal talent is being driven by sectoral innovation, regulatory complexity, and strategic investment.
Key Trends Across the Regions
1. Hiring Activity & Volume
- Senior legal moves and promotions: Across the UK, we recorded over 250 senior legal moves and promotions, a 40% increase from Q2, reflecting renewed confidence in leadership appointments and succession planning.
- Mid-level demand: Lawyers with 2–6 years PQE remain the most sought-after, especially in commercial, employment, and regulatory law. This trend is particularly strong in Manchester and Birmingham, where mid-level talent is being actively pursued.
- Junior market rebound: The 0–3 PQE segment is showing tentative signs of recovery, with Bristol and Leeds seeing increased interest in junior hires, albeit cautiously.
2. Regional Sector Highlights
High Activity Sectors:
- Technology: Continues to lead hiring across the regions, especially in Manchester and Bristol, driven by AI innovation, data regulation, and IP strategy.
- Financial services and asset management: Hiring rose 28% YoY, with Leeds and Birmingham seeing strong demand for legal professionals in fund structuring, governance, and compliance.
- Energy and utilities: Legal recruitment is rising in response to green investment and regulatory shifts, with Sheffield and the North East showing increased activity in sustainability-related legal roles.
Moderate to Low Activity Sectors:
- Retail, FMCG, hospitality: Hiring remains cyclical and subdued, particularly in smaller regional centres, impacted by consumer trends and economic caution.
- Education, social enterprise, telecoms: These sectors continue to show limited movement, reflecting smaller in-house teams and slower hiring cycles.
3. Role Types & Structures
- Permanent vs interim: While permanent hiring is increasing, many organisations—especially in Bristol and Birmingham—are still relying on interim contracts, often with a view to converting to permanent.
- Hybrid working models: The 1–3 days in-office hybrid model remains dominant across the regions. Flexibility is now a key factor in candidate decision-making, and rigid return-to-office mandates are prompting attrition.
4. Outlook for Q4 and Beyond
AI and legal efficiency: Legal teams are increasingly adopting AI tools, reshaping role expectations and driving demand for tech-savvy legal professionals, especially in technology-driven hubs like Manchester.
Cautious optimism: Hiring pipelines remain active with our clients, particularly in regulatory-heavy sectors and growth regions like Manchester and Bristol. Q4 is expected to be busy as firms aim to secure talent before year-end.
Strategic appointments: The focus is shifting toward senior hires and internal promotions, with less emphasis on broad team expansion.
Contact Aleea Cherry
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