For beleaguered graduates still on the job-hunt despite graduating many months ago, it appears that the entry-level legal jobs market at the top-tier is still suffering. By comparing the number of graduates recruited in the six months to July 2010, with the same period in 2009, the following statistics from the AFR show each of the seven largest Australian firms has significantly reduced their number of intakes this year.

a law graduate yesterday

• Firm: Mallesons Stephen Jaques
  Number of graduates Jan-July 2010: 91
  Number of graduates Jan-June 2009: 128

• Firm: Freehills
  Number of graduates Jan-July 2010: 86
  Number of graduates Jan-June 2009: 96

• Firm: Minter Ellison
  Number of graduates Jan-July 2010: 78
  Number of graduates Jan-June 2009: 104

• Firm: Allens Arthur Robinson
  Number of graduates Jan-July 2010: 75
  Number of graduates Jan-June 2009: 76

• Firm: Blake Dawson
  Number of graduates Jan-July 2010: 58
  Number of graduates Jan-June 2009: 77

• Firm: Corrs Chambers Wesgarth
  Number of graduates Jan-July 2010: 39
  Number of graduates Jan-June 2009: 53

• Firm: Clayton Utz
  Number of graduates Jan-July 2010: 35
  Number of graduates Jan-June 2009: 76

While these statistics are very bad news for those who have already graduated, the statistics below may be of considerable relevance to those still undertaking their studies and wondering where they will find their graduate job. Last year we compiled an analysis of the number of seasonal clerkships offered by each of the top-tier firms mentioned above and compared that number with the number of graduate positions offered by each of the same firms. In so doing, we were able to formulate a a percentage for each firm representing the likelihood that a seasonal clerk would ultimately receive a graduate offer. In 2009, the probability that seasonal clerks would be offered a graduate position were (approximately) as follows:

• Corrs Chambers Westgarth 80% (53/66)
• Clayton Utz 65% (96/147)
• Freehills 63% (120/190)
• Mallesons 54% (135/248)
• Allens Arthur Robinson 45% (94/206)
• Blake Dawson 45% (85/185)

At a time when there is still a tight jobs market, university students with several seasonal clerkship offers should probably pay attention to these stats when considering where they should spend the summer.

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With a heap of fanfare, Clayton Utz announced on Monday that 6 new partners had been appointed to the firm. The firm said that the appointments reflected the emergency situation where several lawyers were rumoured to be readying themselves to give the partnership an ultimatum “calibre and depth of talent at the firm”. You’ll recall we reported a rumour that 6 partnership promotions were set to be announced one week prior to the official announcement.

In that post, we mentioned that the Clayton Utz equity pool might shrink on the back of the promotions and in light of the fact that the firm will soon be opening an office in Hong Kong and had also resolved to lift the pay freeze.

But something didn’t add up. Yes it was a dire situation, but how could Australia’s greatest corporate tighwad show such a preparedness to splash the cash?

Alas, our instincts have proven correct. What does an emotionless, money-hungry corporate enterprise do when equity value is threatened? You guessed right - they sack a few people!

In the words of the numerous Clayton Utz firm spies who have written to us in the past day (thanks to all for your efforts):

First this:

Clayton Utz did not renew the contracts of 8 out of their 20 2009 graduates today.

Then this:

Clayton Utz Melbourne hired 20 graduates in 2009. 2 graduates resigned last week to take up other jobs. Yesterday the firm advised 6 of the 2009 graduates that they would not be kept on. The 6 let go will be paid out the remaiing 4 weeks of their contract and not allowed back to the office. In less than 12 months the original group of 20 is now just 12. Pay is still frozen at 56k with a review in the coming weeks.

…[moments later, this was sent] Correction re Clayton Utz graduates: There are only 11 with ongoing employment, the 12th has been put on a 6th month contract.

Then this:

Yesterday (2 March) Clutz Melbourne told six of their 2009 grads that their careers at the firm were over. In a series of orchestrated meetings, the unlucky ones were told of their fate and then… wait for it… given a cab charge and advised to take the rest of the day off!

And finally, this:

Dear Firmspy, In case you haven’t already heard, the Clayton Utz graduate lawyers found out yesterday whether they were offered a permanent placement. Of 16 graduates, 6 were “not offered” a permanent placement due to “business reasons”. All 6 were women. The graduates have been given the option of being paid out until the end of the month. A silver lining i suppose. It is a repeat of 200, where 7 out of 19 graduates were let go. The way HR approached the situation has been appalling, with graduates made to feel as though they should exit quietly through the back door as opposed to being thanked for their hard work and long hours over the past 12 months. Clutz are only starting 15 graduates in the March 2010 intake - here’s hoping that at least half of them can actually keep their job…

You read it right: a cab charge; a few grand; and a polished boot to the backside. Where we hail from, that’s called abUtz!

How can Clutz make a business case for sacking the Melbournian grads, given the paltry wages paid to them and the fact that the defecting partners were all Sydney based?

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Let us start by retracting any inference which we may have made in relation to Freehills consultant, and WA Law Society president, Dudley Stow.

other than championing graduate rights

We commented last week on the irony that Dudley, an employee of the firm we regard as being a protagonist in the collapse of the WA Law Society Graduate Recruitment Scheme, would comment on the ‘regrettable’ breakdown of the scheme in his capacity as WA Law Society president.

If the following email is true, it seems we now have a different Freehills target to whom we can apportion blame. We received the following from an anonymous source earlier in the week:

Here’s the email that Freehills sent to Vac Clerks in Perth:

Dear vacation clerks,

As a result of increasing student unrest and daily phone calls from many of you in response to early offers made by other law firms who have opted out of the scheme, we feel it is in your best interests for Freehills to also break away from the scheme and make early offers. We had wanted to comply and see the process through but with the many firms who have now made offers early, we feel it is not fair for you to be placed in this position when the scheme was initially designed to protect your interests. This morning, we made some early offers by phone. These offers will be kept open for the next week, and if you haven’t already heard from us, you may still be on the list with a potential call to follow. We will continue to review all applications, both from previous vacation clerks and other candidates, once applications officially close this evening. We will also interview any candidates we have not yet seen who we think might warrant further consideration. In the interests of fairness to you all, we think this is the only course of action available to us. There is no doubt that much discussion will need to take place in the aftermath of this year’s recruitment process. For now, we urge you to have faith in the firms you are considering for articles and ensure you know where you stand at all times to give yourself the best possible chance of securing employment, preferably with your #1 firm of choice. I wish you all the very best in an extremely challenging market.

Kind regards
Charissa Maxwell
Graduate Recruitment Consultant Freehills
[other details withheld]

Supposing one accepts the claim that other firms are in fact rorting the scheme, is it fathomable that Freehills have made these early offers out of concern that the graduates are being treated fairly?  That is, Freehills would have graduates believe that its departure from the scheme is borne of a concern that they are being treated unfairly; not to thwart the vexing prospect that Minters or Allens might pinch a graduate from under their noses.

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In a report that was far from a surprise, The West Australian noted recently that graduates can expect a more difficult time securing employment this year as a result of the GFC. Importantly, the article reported:

a graduate receives her employment contract ahead of time

Freehills [Perth office] recruitments would remain steady on the 15-strong contingent this year, but would be down slightly from 22 in 2008.

Despite the proposed reduction in numbers and, more broadly, the employer-friendly job market, we received the following scandalous rumour from an anonymous source last week:

Freehills offering Perth Graduate positions early, out of law society guidelines.

As if booze-fuelled seasonal clerk parties weren’t enough!?As noted on the WA Law Society website:

The Society operates a recruitment scheme for articled clerks … with which all firms are asked to comply. The scheme aims to meet the needs of both employers and students by establishing an orderly framework and a level playing field, within which the recruitment process can be conducted. Under the scheme… dates are set for the dates on which offers may be made to articled clerks and vacation clerks. Firms are requested not to make offers of … articled clerkship prior to these dates.

We cannot confirm the veracity of this rumour, but if true, it would be the worst kind of breach of the scheme given the prevailingly tight job market.

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Thanks to the current edition of BRW for the following stats:

a big4 accounting partner with standard PR spin

Accounting Firm          2009 Intake        Change on 2008

Deloitte                            508                           21%

KPMG                               378                          -16%

Ernst & Young                425                          -15%

PwC                                    374                           2.7%

According to our calculations, this means a net increase of 88 grads at Deloitte, 10 grads at PwC and net decreases of 72 at KPMG and 75 at Ernst & Young. If this is corrrect, there is a net reduction of 49 graduate positions amongst the Big4 accounting firms this year.

We wish the very best of luck to all grads on the job-hunt.

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In arguably the clearest indication that the corporate firms largely disagree with economists forecasting an end to the GFC, Deloitte and Ernst & Young are slashing their graduate intakes.

As reported in the AFR (6/7):

Deloitte will cut its graduate intake by as much as 30% to 350. Ernst & Young expects to start 350 graduates next year, compared with a 2009 intake of 425… PriceWaterhouseCoopers and KPMG are still completing their plans. If KPMG does scale back its intake it will be the second year in a row.

The disagreeably garish Giam Swiegers made the following insightful comments on Deloitte’s reduction:

We have a little bit more breathing space this year, there is not as much urgency as there was in the last two or three years.

a jobless graduate breathes easy

Meanwhile, E&Y spokesperson Gillian Lamrock said:

We believe it’s critical that students continue to see long-term career options in the profession, and while the 2010 intake numbers will be less than 2009, we’re focused on the medium to long term, and are committed to all our programs in 2010.

So Gillian and E&Y are committed to taking less grads, but are trying to perpetuate the idea that they are still doing everything possible for the profession, while Giam is breathing easy. Send the Firm Spy your news and views!

Not only does Allens Arthus Robinson stubbornly refuse to offer graduates a decent rotation system, but it seems that the graduates’ original decision to work with the firm may have been influenced by empty rhetoric that work would involve international travel.

In response to tax laws proposed by the government in the federal budget, AAR corporate affairs director Chris Fogarty today snivelled that as a result of the changes:

Bernie, one of our younger lawyers, is ALWAYS overseas with work!

the law firm would find it more difficult to send lawyers to its Asian offices to work on short-term projects and to give younger lawyers overseas experience.

However, appearing on the AAR website are the following grand statements:

We have a ‘best friends’ relationship with Slaughter and May [in] London. One way in which we maintain … this relationship is to second and exchange people between the two firms. An exciting aspect of working at Allens is the global scope of the work we do for our clients. This means that you could have the opportunity to do client work that requires you to spend some time in another office in… Asia…  It could see you living and working in another city or country for an extended period. Working in another office is a valuable opportunity to add to your professional development by meeting new people and developing your networks, building your profile among colleagues and clients, and learning new skills. Of course, there is also the exciting experience of living in another city or country!

So come to Allens, kids! You’ll get to travel the world and get paid for it!* (*If the Federal Government passes proposed tax laws you will remain in Australia)

Is it right for law firms to exaggerate on their careers web-pages to entice graduates? Should law firms simply ‘fess up that being a lawyer means four walls and not much fun from now unto forever?

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