14 Jan 2026: What to expect in the US associate market
Despite a challenging 2025 backdrop of tariffs, executive orders, and prolonged uncertainty around interest rate cuts, the US legal market did not stall – it adjusted. Big Law adapted quickly, and early financial results point to a market that finished the year in a position of real strength.
We’re entering 2026 with confidence and momentum. Here’s how we expect the US associate market to unfold over the next 12 months.
The transactional market will see bigger deals but fewer firms
The 2025 M&A pie was bigger, but cut into fewer slices. The year of fewer, bigger, bolder deals was led by a pack of breakaway firms at the top of the rankings, which looks set to continue into 2026.
- We have already felt a surge in demand from the top M&A and PE firms that are looking to bolster their associate ranks as they prepare for another year of large value deals. Meanwhile, some middle-market firms are reporting a continued level of caution among their clients. We expect there will be a lot of associate movement between firms in M&A from the get-go, with the top players snapping up as much talent as possible.
- We are also experiencing a real surge in opportunities for lawyers in practice groups that typically support M&A, particularly in Tax and Exec Comp, and increasingly across Antitrust, IP, Tech Transactions, and Employment.
- Growth in Private Capital capabilities will continue to be of strategic importance to Big Law firms in 2026, and we expect Funds groups will be in growth mode across the Am Law 100.
- Finance lawyers with experience in private credit, structured finance, leveraged finance, or asset-based lending remain in steady demand, particularly in NYC. Bankruptcy and Restructuring lawyers also continue to be in demand.
- Project finance continues to keep us very busy in NYC and DC, with growing activity in Texas due to a surge in the traditional energy sector, as well as in LA.
- We anticipate a continued growth curve in Capital Markets hiring generally in 2026. With the expected continued decline in interest rates more opportunities should crop up for ECM/IPO lawyers. DCM hiring maintained a steady pace in 2025, and we expect this trend to continue, particularly for solid mid-level and senior associates who are capable of taking on greater responsibility.
Litigation will be busy but more competitive
- Litigation groups across most major US markets were very active in 2025, and we expect this momentum to continue. While regulatory and investigations expertise has seen softer demand under the current administration, complex commercial litigation has remained particularly busy, and this trend is set to persist.
- With the growing role of generative AI and the expansion of the tech sector, we anticipate rising demand for IP litigation talent.
- It is worth noting that the DC lateral market has been more competitive, driven in part by an influx of government and regulatory lawyers moving into private practice throughout 2025. As a result, candidate competition remains elevated. One notable exception is antitrust litigation; demand for this skill set has remained strong. Antitrust litigation lawyers considering a move in 2026 are therefore likely to have a range of options to consider.
Sector hotspots
- We expect continued growth in the energy sector, with particular momentum in traditional oil and gas. The infrastructure sector also shows sustained expansion, both in a traditional sense and as digital infrastructure demand increases.
- Life sciences and technology remain strong growth areas, particularly in AI-driven technology, which is creating new opportunities and driving increased investment. Across these sectors, firms are likely to see continued demand for specialist expertise.
Cross-border mobility is tougher, but improving
- Moving to the US from a foreign jurisdiction was tougher for associates in 2025, but as the market keeps getting busier, opportunities are starting to open up for those with the right to work, especially lawyers from Australia, Canada, and Singapore.
- Since lawyers from these jurisdictions often face a haircut of up to two years when moving to the US, transactional lawyers with at least four years’ experience are likely to be in higher demand as local talent pools become more competitive. This is particularly true for those with experience in M&A, private equity, leveraged finance, structured finance, and project finance.
- Candidates who have already sat the bar will find themselves at a clear advantage in the 2026 market.
Firm mergers are a catalyst for associate mobility
2025 was a big year for merger announcements, and we expect that trend to continue in 2026 as firms compete for work mandates, look to close the gap with the top firms capturing the lion’s share of the deal market, and respond to rising costs of running a law firm. Whenever firms start merger talks, it usually leads to increased associate movement, with both departures and new hires as teams adjust.
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This article was written by Gillian Morgan, a Senior Consultant in our New York office.