Melbourne’s Legal Recruitment Landscape in 2025: What Lawyers and Hiring Managers Need to Know

Our legal industry recruitment experts share with you the current trends in the Melbourne legal sector and how you can attract, recruit and retain talented lawyers for your business. Find out what candidates are asking for now and how to ensure your firm stands out in a competitive talent market. 

Recruiting and retaining top legal talent in Melbourne can be a challenge. Today’s legal job market demands a more strategic, informed approach.

To navigate it successfully, you need to understand the broader economic forces at play — and how they’re influencing the legal sector on the ground.

Economic Uncertainty, Subtle Shifts, and a Cautious Workforce

Despite broader headlines about slowing growth, the Australian labour market remains resilient. While unemployment has inched up over the past few years, it’s still below the long-term average and well under what economists consider full employment. The result? Quality candidates — particularly experienced lawyers — remain in short supply.

Inflation, once a major pressure point, has eased significantly and now sits comfortably within the Reserve Bank’s target range. This has sparked talk of interest rate reductions, potentially boosting business confidence. But for now, caution remains. According to LinkedIn, fewer professionals are actively job-hunting — only 59% of Australian workers are open to new opportunities in 2025, compared with 76% last year.

What does this mean for law firms? The pool of active legal candidates is shrinking. Meanwhile, demand remains steady, especially in certain practice areas. Firms are being forced to work harder to stand out — and to address the real concerns of today’s cautious and highly researched candidates.

Legal Talent is in Demand - But Reluctant to Move

Despite economic headwinds, the appetite for legal services remains strong across Australia. But securing the talent to meet this demand isn’t getting easier. Most lawyers are gainfully employed, and many are hesitant to consider a move. 

Common reasons for this include:

• Concerns about economic stability and cost of living pressures
• Competitive salaries and flexibility being offered in current roles
• Strong retention strategies within firms which may include transparent promotion pathways, career development opportunities and meaningful benefits and leave policies

In addition to this, the demand for mid-level lawyers wanting to work overseas has also picked up in our post-Covid era which is also leading to a drain in local legal talent. 

Big Firms Are Upping Their Flexibility Game

Once a unique selling point for small and mid-sized firms, workplace flexibility is now being embraced by larger players. Hybrid arrangements are standard — even for support roles — and firms are becoming more intentional about promoting their flexibility as a recruitment tool. This shift has eroded the traditional advantage smaller firms held in the war for talent. Candidates now expect hybrid options across the board, regardless of firm size or structure.

Lawyer’s Weekly 2025 Survey data support this trend: while the percentage of legal professionals planning to change jobs has slightly increased compared to last year, it remains far below 2023’s peak. Importantly, most lawyers looking to move still want to stay within the profession — a good sign for firms willing to tailor their offers to match evolving expectations.

What Lawyers Want to Know Before They Apply

If you’re hiring, the questions candidates are asking have shifted. We are certainly getting less questions about company prestige or high salaries. Melbourne lawyers want clarity, purpose, and balance. 

Here are four key questions we’re hearing from candidates in today’s market:

1. What are the billable hour expectations?

Lawyers are acutely aware of burnout risks. They’re looking for firms that manage expectations realistically. If your billable targets are moderate compared to market norms, highlight this clearly in your recruitment messaging.

2. Is hybrid work on offer?

Flexibility is no longer optional. The standard is now three days in-office and then two done remotely. Any less flexibility can hurt your attractiveness as an employer.

3. Can I review the position description upfront?

Lawyers want specifics. Vague job ads no longer cut it. Providing a detailed PD early in the process can improve both application volume and quality.

4. What does your firm stand for?

Especially for younger lawyers, values matter. Firms that clearly articulate their culture, values, and career development pathways — often through a formal EVP (Employee Value Proposition) — stand out in a competitive market.

Practice Areas in High Demand

Some legal specialties are experiencing sustained demand in Melbourne:

• Family Law: Demand remains elevated post-Covid and shows no signs of softening.
• Employment & Workplace Relations: Ongoing regulatory changes, including new Fair Work reforms, are keeping these teams busy.
• Commercial Litigation & Insolvency: Victoria has recorded the highest rise in business insolvencies nationally, driving strong demand for mid-level litigators.

Legal support roles remain in demand, particularly across litigation, family law, conveyancing, and employment law. By contrast, demand in commercial and personal injury teams has stabilised for now.

A Final Word for Legal Employers and Job Seekers

Melbourne’s legal job market in 2025 is defined by caution, competition, and a growing emphasis on values alignment. Whether you're a lawyer considering a career move or a hiring manager looking to build your team, success depends on understanding what today’s candidates want — and responding with clarity, empathy, and flexibility.

For firms, this means:

• Promoting realistic billing expectations
• Offering hybrid arrangements as a standard, not a perk
• Sharing comprehensive position descriptions
• Investing in your EVP to communicate culture and purpose

Done right, these actions will not only attract new talent but help you retain the people you already have - a critical advantage in a tight, candidate-driven market.

Need Help Navigating the Market?

At Legal People, we’ve been supporting law firms and legal professionals across Melbourne for decades. Whether you're looking to recruit a new team member, understand market salary trends, or position your firm to attract top-tier talent, our team is here to help.

Meet Our Experts:

Sharon Henderson - Director and national leader in legal recruitment. Known for her deep networks and market insight.

Rosie Mamic - Principal Consultant with over a decade of success in placing legal professionals and support staff across private practice and corporate teams.

Laine McKenzie - One of Melbourne's most trusted legal support recruiters, offering guidance, market advice, and enduring client relationships.

Get in touch today to start a conversation about your legal career or your firm’s next hire.

Should you like a confidential discussion about your next legal industry career opportunity please get in touch at [email protected]. We are specialists and recruit Lawyers, Support staff and HR professionals in Melbourne, Australia.