Swiss Legal Market goes from strength to strength – salaries expected to skyrocket as increase in hiring continues

Zurich - November 2022

- Salaries expected to skyrocket as increase in hiring continues - 

·        +14% increase in hiring within legal sector compared to same time last year

·        Corporate law firms continue hiring with M&A activity up by a quarter (+24.6%)  

·        New inheritance regulations driving demand for tax lawyers

·        Changes to data protection regulations driving new demand for legal tech specialists

The Swiss legal market has continued its year-on-year increase in hiring – with a +13.82% rise in hiring compared to the same record-breaking period last year.

When comparing hiring to the pandemic-stricken 2020 – the number of new jobs posted in the legal sector has increased by a staggering +90%, according to new jobs data from recruiter Robert Walters.
 

Christian Atkinson, Director at Robert Walters Switzerland, comments:

“Whilst downsizing at volume within law firms is rare – the legal world is prone to boom and bust in regard to hiring.

“What we encounter during a downturn is a cut back in new trainees, but when demand increases this means there are less available qualified junior lawyers - putting pressure on the system as a whole.

“Add in truly incredible wage inflation, greater specialisation making some types of lawyers scarce, the increasing scale of in-house teams – and we have a ticking timebomb.”
 

Data Protection regulations driving demand

As new data protection regulations come into effect in 2023, the demand for in-house lawyers is already being felt – with the number of new job vacancies posted increasing as companies looking to be compliant with the New Federal Act on Data Protection (nFADP) look for assistance.  

Currently, Data Protection Officers with less than 2 years’ experience can command up to 120,000 CHF, and those with close to 10 years’ experience can bring in 200,000 CHF. In advance of the September 2023 nFADP deadline, Robert Walters analysts anticipate a 15-25% increase in salaries for data protection and compliance specialists.
 

Christian comments:

“With new data protection regulations on the horizon, we can estimate that the hiring scene will be very similar to that of EU countries when the GPDR was passed – where we saw an increase in demand for in-house lawyers who specialise in IT law and security compliance.

“It was not long ago where the biggest graduate earners in Zurich and Geneva typically worked within tech or banking – but lawyers are very much at the top of that chain and there are no signs yet of this slowing down.”
 

Rise of Corporate Law

2021 was also a busy year for corporate law firms, with record levels of M&A activity – up +24.6% compared to pre-pandemic levels, a momentum which has sustained in 2022.

In addition to that, a +30% increase in overseas Swiss SME activity has further driven the demand for specialists in corporate law.
 

Christian adds: “Whilst the first half of 2022 was a boom for corporate law – we saw firms reach critical mass – and for the last part of this year hiring has been muted. In addition, pending inheritance law changes coming into effect from January 2023 has meant that many law firms have held firmly onto their tax specialists. With less movement if candidates in the market – the sector risks facing an even tighter labour market with less talent to choose from amidst growing numbers of vacancies.”