Lateral Moves in 2026: Market Insights by Stephanie Morris

Are We on the Cusp of a Surge in Lateral Moves? 

If you thought the lateral recruiting market felt unusually quiet to begin the year, you’re not imagining it. With two factors seemingly at play, law firms are both taking time to reset and reassess their growth strategies, as well as reshuffling their resources to prioritize student recruitment earlier, and earlier. So where does this leave lateral hires and is this the calm before a surge?

Since the pandemic, law firms have dramatically shifted their approach to student recruitment, moving from schoolfacilitated interactions to direct engagement with students. In recent years, the legal hiring market has become so competitive that timelines have accelerated to unprecedented levels. Firms have been interviewing firstsemester 1Ls for 2027 summer programs. Yes, that’s right. They are well and truly underway.

So why the rush to interview students who are only weeks into their legal education? It comes down to competition. Talent acquisition teams have been busy conducting interviews and extending offers to students much earlier to secure top candidates. Given that law firms have finite recruitment resources, particularly those without large, dedicated student hiring teams, something has to give. This shift is all happening alongside broader economic and strategic pressures that are reshaping firms’ priorities. 

From what I have seen that “something” has been the lateral market. In my conversations with candidates and firm leaders, combined with the data, there seems to be some truth to this story. According to Firm Prospects Intelligence, lateral attorney moves dropped from 2,343 in January 2025 to 1,261 in January 2026—a 46.2% yearoveryear decline. While striking, this dip likely reflects a strategic reallocation of focus, and importantly, not a diminished need for lateral talent.  

And there lies the key point – the lateral market is only experiencing a brief cooldown. The demand for experienced attorneys remains essential for firms looking to offset attrition, meet growth goals, and stay competitive, especially as mergers continue to reshape the industry landscape.  

So, although the lateral market may feel slow right now, the broader outlook is much more optimistic. Firms are investing early in students while simultaneously gearing up for a meaningful rebound in lateral hiring. For candidates looking to make a lateral move, this is not a moment for discouragement, it’s a moment to prepare for the next wave of opportunity.

If I can offer a word of advice, I would encourage candidates to stay patient, stay focused, and not read too much into delayed responses. The slower pace is less about your candidacy and more about the current dynamics playing out across the legal recruiting market.