UK in-house legal recruitment market update Q3
Corporate and commercial
Taylor Root’s corporate and commercial team saw a reduction in vacancies at the start of Q2 in 2025. April’s market was shaky, influenced by global uncertainties, including political factors like Trump’s policies, which disrupted confidence. However, May and June saw recovery, with increased hiring activity signalling optimism for a stronger H2 2025 compared to H1.
A decline in hiring compared to the prior year was notable in consumer-driven sectors such as FMCG, retail and hospitality/leisure likely impacted by economic uncertainty and reduced discretionary spending. Healthcare and media sectors remained steady and technology saw a significant jump.
There has been a notable increase in bringing employment work in-house with a number of senior Head of Employment appointments across a range of sectors. We also saw an increase in mid-level employment counsel hires too. Mid-level commercial lawyers (2-6 PQE), continue to be the most in demand. The junior market (0-3 PQE) showed a tentative rebound and the senior GC market remained challenging.
The economic climate in Q2 2025 reflected cautious optimism as predicted. Private equity, a key driver of corporate legal hiring, rebounded significantly in H1, with deal activity rising accordingly to industry reports. We anticipate H2 2025 will outperform H1, particularly if private equity momentum persists and global uncertainties ease.
Contact Georgia Morgan-Wynne
Banking and financial services
The in-house legal hiring market across financial services (FS) and professional services (PS) in the UK continued to show resilience and growth in Q2 2025, with overall roles increasing by 17% year-on-year. This reflects the evolving demands placed on legal teams as they support increasingly complex regulatory, transactional, and operational environments.
Collectively, the financial services sector (including banking, insurance, asset management, private equity, venture capital and payments) experienced a 28% increase in hiring compared to Q2 2024. This growth was led by a significant rise in traditional financial services roles, which grew by over 80%, and the emergence of new hiring activity in private capital markets. Private equity and venture capital hiring now represents a growing area of demand—highlighting increased deal activity and the need for legal expertise in fund structuring, governance and investment execution.
Asset management and investment/corporate banking also saw a doubling of hiring activity, suggesting renewed momentum in capital markets and institutional investment. These areas continue to require legal support for regulatory compliance, fund formation and transactional work. Insurance hiring remained relatively stable, with only a modest decline, indicating consistent legal needs in underwriting, claims and regulatory change.
FinTech and cards/payments saw a noticeable slowdown in hiring compared to the same period last year. While activity in these areas was down, this likely reflects a period of recalibration rather than long-term contraction. Factors such as market consolidation, investor caution, and a shift in focus from rapid growth to regulatory compliance and profitability may be influencing short-term hiring trends. These sectors remain strategically important and are expected to rebound as conditions stabilise.
In the PS space, hiring remained strong, growing by 43%, likely driven by increased internal legal needs in consulting, accountancy and advisory firms. These roles typically focus on commercial contracts, risk and internal governance.
Overall, Q2 2025 reflects a maturing and diversifying in-house legal market, with strong growth in core FS sectors, emerging demand in private capital and a temporary recalibration in FinTech. Legal teams are evolving to meet the demands of a more regulated, investment-driven and risk-conscious environment.
Contact Nikki Newton
Interim update
The interim legal market has continued its strong momentum in Q2, with a 24% year-on-year increase in interim legal roles registered, a clear sign that demand for flexible legal talent remains high across industries.
While we’ve seen growing interest in alternative working models, the market is still being driven primarily by fixed-term contract roles, which continue to outpace daily-rate consultant placements. This reflects a preference among employers for stability and budget predictability, particularly when interim hires are covering core business functions.
A noticeable trend this quarter has been the strategic use of interim Lawyers to provide immediate cover while permanent recruitment processes are underway. In-house legal teams are increasingly leaning on interim solutions to avoid gaps in legal coverage, ensuring business continuity while taking the time to secure permanent talent.
Importantly, legal teams are now finding it easier to obtain internal budget approval for interim legal support. This shift, potentially driven by increased recognition of legal risk management and workload pressure, has helped unlock hiring that may have previously been delayed.
From a sector perspective, there have been notable spikes in interim hiring across insurance, fintech, technology and the hard sectors (including infrastructure, energy, and manufacturing). These industries are navigating complex regulatory environments, growth projects and transactional work, all of which benefit from agile legal resourcing.
Looking ahead, we expect demand for interim legal talent to remain steady throughout Q3, particularly as businesses continue to balance project-based needs with long-term growth plans. Interim solutions are increasingly seen as a complement to permanent hiring, offering flexibility and speed when needed.
Contact our interim team
Regional in-house legal hiring
The in-house legal employment market for solicitors in the UK regions has shown encouraging signs of resilience and cautious optimism in 2025. Following a period of economic uncertainty and hiring slowdowns in previous years, the market is now experiencing a steady recovery, with renewed confidence among employers and legal professionals alike.
Market recovery and growth
In the first quarter of 2025, there was a notable 20% increase in in-house legal vacancies compared to the same period in 2024. This growth spans both permanent and interim roles, with demand evident across all levels—from paralegals to general counsel. Sectors that had previously struggled, such as technology and fast-moving consumer goods (FMCG), are now rebounding, while traditionally strong sectors like energy and real estate continue to thrive.
This uptick reflects a broader sense of renewed confidence among employers in regional hubs such as Manchester, Birmingham, Leeds and Bristol. These cities are seeing increased investment in legal teams, particularly in industries like financial services, healthcare and infrastructure. While London remains the epicentre of legal hiring, the regions are becoming increasingly competitive and attractive for legal talent.
Regional trends and sector demand
The financial services sector, which had been cautious in 2024 due to economic instability, is now showing signs of recovery. There is a growing preference for fixed-term contracts and interim roles, allowing companies to remain agile while navigating ongoing macroeconomic challenges. At the same time, legal technology adoption is on the rise, helping regional legal teams manage risk, streamline workflows, and improve efficiency.
Hybrid working remains a defining feature of in-house roles outside London. Most regional employers offer between one to three days in the office per week, with some overseas firms still offering fully remote roles to attract UK-based talent. This flexibility is a major draw for solicitors seeking a better work-life balance compared to the often more demanding London market.
Opportunities for newly qualified Solicitors
For NQ solicitors, the regional market in 2025 presents a mixed picture. While retention rates at training firms remain high, the number of external NQ opportunities has not yet returned to pre-pandemic levels. Many trainees face uncertainty late into their training contracts, with some firms delaying decisions on retention until just weeks before qualification.
Despite these challenges, many NQs have successfully secured roles in their preferred practice areas. The regional market offers a more affordable and potentially less competitive environment for early-career solicitors, especially in areas like commercial property, employment, and regulatory law. For those willing to be flexible on location and sector, the regions offer a promising start to a legal career.
Sectoral drivers of growth
Several sectors are driving the growth of the in-house legal jobs market across the UK regions in 2025. These reflect broader economic trends, regulatory developments, and technological advancements:
- Energy and renewables: Regions like Aberdeen, Bristol, and the North East are seeing strong demand for legal professionals in both traditional oil and gas and emerging renewables such as wind, solar, and hydrogen. Legal roles often focus on regulatory compliance, project finance and environmental law
- Real estate and infrastructure: Cities such as Manchester, Birmingham, and Leeds are experiencing a boom in commercial and residential development. Legal teams are needed to handle planning, construction contracts, property finance and landlord-tenant issues
- Financial services: Hubs like Bristol, Edinburgh, and Leeds are seeing increased hiring for roles involving regulatory compliance, risk management and commercial contracts
- Technology and cybersecurity: Tech clusters in Manchester, Cambridge, and Bristol are fuelling demand for legal expertise in data protection, intellectual property and AI regulation
- Environmental and ESG law: Driven by the UK’s net-zero targets and evolving ESG regulations, legal professionals are increasingly needed to advise on climate litigation, sustainability disclosures and green finance
- FMCG and retail: The FMCG sector, especially in the North West and Midlands, is rebounding. In-house legal teams are expanding to manage supply chain contracts, consumer protection and advertising compliance
- Healthcare and life sciences: Regions like Oxford, Cambridge, and parts of the North West are seeing growth in biotech and healthcare, with legal roles focused on regulatory affairs, clinical trials and IP protection.
Looking ahead, the in-house legal market in the UK regions is expected to continue its gradual recovery, supported by stabilising economic conditions, falling inflation and increased investment activity. However, geopolitical uncertainty and potential regulatory changes could still pose risks.
Overall, the regional in-house legal market offers a promising landscape for solicitors seeking career progression outside London. With growing demand, flexible working models, and a broadening sector base, the regions are becoming an increasingly attractive alternative for legal professionals across the UK.
