Corporate law, M&A, and real estate are experiencing a hiring slump, says ZSA president Warren Bongard
The demand for international trade lawyers is rising amid economic uncertainty – a stark contrast to what has traditionally been a niche practice, says Warren Bongard, president and co-founder of ZSA Legal Recruitment.
Meanwhile, restructuring, insolvency, and litigation roles are also rising, while corporate law, M&A, and real estate are experiencing a hiring slump.
Bongard says international trade law has historically been a small hiring market, but recent months have seen a notable surge in demand for trade specialists.
“I placed two lawyers in the last two months in international trade… Considering I can probably count on one hand how many I did in the last few years, that’s a lot for this space.”
Trade law has traditionally been limited to firms with global clients, but with rising geopolitical tensions and new tariff threats, he adds, companies are increasingly seeking legal experts to navigate international trade regulations.
“Some of the elite firms have very reputable trade practices, but once you get below the surface of these large law firms, I don’t think it’s a big area,” Bongard says.
Insolvency and restructuring practices are also seeing greater hiring activity. Bongard says law firms are likely preparing for an uptick in bankruptcies, creditor disputes, and corporate restructuring cases as more companies struggle financially.
“Insolvency and restructuring are no surprise. We are expecting more from that industry. We all saw the retail Hudson’s Bay business go into receivership, and I think that’s an indication that there’s probably more to come.”
Litigation, he adds, tends to increase during economic downturns as companies seek alternative revenue sources.
“Anytime you have trouble in business, … companies often look at litigation as a potential opportunity to generate new income or new money, and so they might pursue a piece of litigation that they might not otherwise in boom times,” he says.
Bongard says real estate law flourished during the last economic boom but has experienced a steep decline, particularly in the condominium sector.
“The interest rates hit the market pretty hard when they were high… The condominium market is in a significant slowdown.”
He adds that corporate finance and M&A have also slowed considerably as businesses hold off on deals and investments.
“We are in a definite corporate law slowdown within the law firms, caused by companies not sure where to invest their money, whether it’s M&A, private equity… Corporate finance has been really quiet. You don’t see a lot of IPOs at the moment in the public markets.”
Bongard says this slowdown is particularly concerning for law firms, as corporate transactions are among their most profitable areas.
“They create substantial hours and are often the best opportunity to leverage associates and students and clerks. So, without a healthy flow of those types of transactions, it's more challenging to be profitable,” he adds.
While traditional M&A deals are declining, some corporate lawyers are shifting their focus toward distressed M&A – transactions that occur when struggling companies seek financial rescue, he says.
Bongard says these trends could change within weeks or months but adds that the worry remains that US tariff threats could impact Canada’s economy and legal sphere.
While private practice hiring in corporate law has slowed, Bongard is seeing a rise in the mobility in-house counsel market.
A part of it, he says, can be attributed to attempts of companies to reduce their legal spending on law firms.
Another reason, he points out, is that in-house roles are becoming more lucrative than before.
Traditionally, in-house legal roles offered better work-life balance but lower salaries than private practice. However, Bongard says that many are now offering competitive compensation, making in-house transitions more appealing than ever.
“You see some very high-performing lawyers leaving law firms to go become general counsels of major public companies. They used to think they were going to take a big pay cut, but now they actually can make more through restricted stock options and other programs that enable them to build generational wealth. Meanwhile, law firms pay out their annual profits each year rather than building long-term equity,” he says.
