However, property, immigration, crime and litigation have been the areas of law hardest hit.
Just as gross domestic product (GDP) tracks the level of output in the overall economy, the GLP Index tracks a basket of metrics which are representative of legal activity levels. The latest index, released this week, found an overall legal market decline of 6.9% in Q2 2020.
The change to new ways of working, as well as workplace uncertainty and restructures, have increased the need for legal advice, creating 4% growth in employment law. Tax law enjoyed almost 14% growth, perhaps benefiting from the furlough scheme and government backed loans, and commercial was one of the best overall performing areas.
An expected surge in restructuring and insolvency work had not materialised midway through the year―this practice area declined by more than 18%.
Property law activity was 31% lower than in 2019, with the housing market brought to a near-standstill by the spring lockdown. The closure of courts and move to remote justice for urgent cases has also taken its toll on dispute resolution and litigation, which fell by 20% in civil and family disputes, while the throughput of court fell by 75%. The GDL Index model predicts that, while there is likely to be pent-up demand, the bounce back is likely to be small and short.
The Index report’s author, Chris O’Connor, head of segment marketing at LexisNexis, said: ‘The report has brought data and insight to the legal industry. Complicated and difficult decisions lie ahead.
‘The GLP will give firms the chance to review their market positioning, see how they are performing and chart a route to future growth.’
