Legal Sector Update NZ: 2025 Talent Shortages and Hiring Trends

In 2025, the legal labour market across Australia and New Zealand remains highly competitive, marked by a persistent shortage of experienced professionals and legal support staff. Data shows that 39% of firms are struggling to recruit senior associates, with additional shortages reported for lawyers (25%) and associates (21%). Legal assistants and secretaries are also in high demand, reflecting broader operational pressures across law firms.

Staffing remains a concern for over half of legal practices surveyed. Approximately 44% report feeling slightly short-staffed, and 12% significantly so. This under-resourcing coincides with ongoing recruitment efforts, where lawyers, associates, and senior associates top the list of priority hires. Specifically, lawyers make up 41% of 2025 hiring plans, followed by associates (36%), senior associates (33%), legal secretaries (29%), and paralegals (16%).

Firms are primarily hiring to support business growth (37%) and replace departing staff (34%). Organisational changes (17%) and seasonal needs (3%) round out the list of drivers. Despite a high demand for new hires, firms are offering greater flexibility to attract candidates. Around 82% offer work-from-home options, while 68% support flexible hours. Interestingly, this has not significantly reduced office attendance, with 70% of staff still working onsite at least four days per week. As a result, competitive benefits such as career progression and flexible work arrangements are becoming essential tools in talent retention.

"The pressure to attract and retain talent really does remain high."

Kalinda Campbell, Permanent Legal Consultant at people2people, outlines the tough conditions currently facing law firms. "The legal sector is continuing to face ongoing hiring challenges in 2025, especially when it comes to finding experienced professionals," she says. Her view is supported by the data, particularly regarding the scarcity of senior legal talent.

Campbell notes, "Senior associates are the hardest to find, with 39% of firms struggling to fill these roles," a trend that is significantly impacting the ability of firms to grow and manage workloads. The shortage extends to other roles as well, including lawyers and associates. These gaps are exacerbated by the increasing demands of clients and the complexities of modern legal work.

On working conditions, Campbell observes a balance between flexibility and office presence. "About 82% of firms offer work from home options and 68% provide flexible working hours. But even so, office attendance is still quite strong," she adds. The fact that 70% of legal professionals attend the office four days a week or more suggests that, while flexible policies exist, in-person collaboration remains a key part of firm culture.

With 78% of firms planning to expand in 2025, Campbell emphasises the importance of targeted recruitment strategies. "Lawyers by far lead the way at 41%, followed by associates at 36% and senior associates at 33%," she explains. This clear prioritisation indicates where firms are most likely to face recruitment bottlenecks and where the focus must remain sharp.

Campbell reinforces the point that benefit offerings have shifted from perks to expectations. "Competitive benefits, career development opportunities and flexible working arrangements are no longer optional. They are really essential," she says. Firms hoping to attract and retain talent in 2025 will need to make these elements central to their employment proposition.

Legal Hiring Advice for 2025

• Prioritise flexibility: Continue offering remote work and adaptable hours to attract top talent

• Enhance benefits: Provide structured career development paths and wellness programmes

• Focus on speed: Streamline recruitment to avoid losing candidates in a fast-paced market

• Invest in support staff: Strengthen teams by filling legal assistant and secretary roles quickly

• Maintain presence: Balance flexibility with in-office expectations to support collaboration