One in four (25 percent) lawyers interviewed for the quarterlyRobert Half Legal Hiring Indexplans to add legal staff in the next three months, while just1 percentplan reductions in personnel. The net24 percentincrease in hiring activity is down six points from the previous quarter's forecast but remains above the average for all occupations surveyed byRobert Halffor itsProfessional Employment Report. Much of the hiring is expected at law firms.

The survey was developed by Robert Half Legal, a premierlegal staffing firmspecializing in lawyers, paralegals and other highly skilled legal professionals. It was conducted by an independent research firm and is based on telephone interviews with 100 lawyers at law firms with 20 or more employees, and 100 corporate lawyers at companies with 1,000 or more employees. All of the respondents have hiring authority within their organizations.

Key Findings

• The net24 percentof lawyers expecting to hire is down six points from a net30 percentincrease projected last quarter. However, it is well above the netseven percentanticipated hiring increase for all fields included in theProfessional Employment Report.
• Nearly half (49 percent) of lawyers said it is challenging to find skilled legal professionals.
• Eighty-two percentof lawyers are confident in their companies' prospects for growth in the next three months, down 2 points from the third quarter of 2011.
• Litigation, bankruptcy and foreclosure, and labor and employment law are the practice areas expected to see the most growth in the fourth quarter.
• Lawyers, paralegals and legal secretaries are the top three positions in demand.

Hiring Trends

"Given prevailing economic uncertainties, law firms are taking a strategic approach to hiring," saidCharles Volkert, executive director of Robert Half Legal. "They are selectively recruiting senior-level associates who will help them enhance service offerings in high-demand specialties such as litigation, bankruptcy and foreclosure, and commercial transactions."

Twenty percentof lawyers identified litigation as the area of law that will experience the most growth in the next three months. Bankruptcy and foreclosure law received18 percentof the response, followed by labor and employment law (14 percent).

"General counsel are expanding their internal teams and bringing on both full-time staff and project professionals to manage more work in-house," said Volkert. "This enables legal departments to reduce their spending on outside counsel and add needed expertise that will support the company's business endeavors."

Law firms and corporate legal departments expect to hire an average of two full-time positions in the fourth quarter, according to survey respondents. Those interviewed indicated they will most likely hire lawyers (96 percent), paralegals (28 percent) and legal secretaries (22 percent). "As firms continue to build their teams, the most marketable associates will be those with in-demand practice-area expertise, a substantial client portfolio, and the ability to identify and pursue new business opportunities," Volkert added.