For decades, the formula for launching a successful legal career seemed straightforward. Land a job in New York City, Washington, D.C., Boston or Chicago, earn the highest salary possible, then build your career from there.
Those cities still boast some of the nation’s largest paychecks. But new salary data suggests they are no longer delivering the strongest financial gains.
An analysis of National Association for Law Placement salary data comparing the graduating classes of 2020 and 2024 found that several regional legal markets substantially outperformed many traditional BigLaw cities after adjusting for inflation. Denver posted the largest real salary gain in the nation at 41.6%, followed closely by Miami at 41.3%. San Diego recorded 20% real salary growth, while Austin posted 12.7%.
That growth is not surprising to Austin recruiter Joelle Schulte, founder of Prospect Point Recruiting.
“Those are high quality of life cities,” Schulte said. “Places that have draws beyond the office. Places that appeal to attorneys who want an outdoor lifestyle or where their dollar goes further. Austin continues to attract talent from across the country because people want to build careers here, not just work here.”
By comparison, New York City and Washington, D.C., each saw salary growth of 18.4% over the same period, which translated to a 3.6% decline in purchasing power after inflation. Boston and Chicago experienced even larger inflation-adjusted declines.
The numbers reveal a key shift. The nation’s largest legal markets still offer the highest median salaries, but when inflation is factored in, many regional markets have quietly become some of the legal profession’s strongest financial performers. And the reasons extend beyond compensation.
Salary analysis for all law firm jobs
Methodology: This analysis uses salary data from the National Association for Law Placement for the classes of 2020 and 2024. Median salaries were compared across legal markets and employment categories to measure salary growth over the four-year period. To determine whether salary increases outpaced rising costs, salary growth was adjusted for inflation using U.S. Bureau of Labor Statistics Consumer Price Index data. Cumulative inflation from 2020 through 2024 was approximately 22%, meaning salaries needed to increase by more than 22% to represent a real gain. Annual growth rates were calculated using a compound annual growth rate formula.
Regional markets excel
The legal hiring market that emerged after the pandemic looked different than many expected.
“What seemed to happen at the beginning of the pandemic was that we all gasped and thought we were heading into a really bad job market for new law graduates,” said Eric Bono, assistant dean for career development at University of Denver Sturm College of Law. “There was a very short dip, but it quickly bounced back. We saw high demand in large law firms, which resulted in spiraling salaries.”
Those salary increases started in the nation’s largest firms but soon spread.
“The trends typically start with the very largest firms in the largest legal markets, and then they cascade across the country,” Bono said. “In Denver, we have national firms with local offices paying at or near the top of the BigLaw salary scale. Local firms have had to raise salaries significantly to compete.”
That competition reached firms outside the traditional BigLaw sphere.
For years, Denver’s smallest firms routinely hired new graduates at salaries in the low to mid-$60,000 range. Today, Bono said, starting salaries above $80,000 have become increasingly common because smaller employers simply cannot attract talent without offering competitive pay.
The result is reflected in the NALP data. Denver led the nation with 63.6% salary growth between 2020 and 2024, producing the strongest inflation-adjusted gains of any major legal market.
Jamy Sullivan, executive director of the legal practice at talent solutions and business consulting firm Robert Half, said Denver also illustrates another trend reshaping legal hiring.
“We’ve seen a number of smaller and midsize firms merge with larger firms or attract significant investment from BigLaw,” Sullivan said. “That creates more opportunities for attorneys while pushing compensation higher across the market.”
She said regional firms have become more attractive to both lawyers and clients.
“Clients have become much more cost conscious,” Sullivan said. “They’re moving work to regional and midsize firms. Those firms are now able to offer sophisticated legal work, mentorship, professional development and a more complete employee experience while remaining competitive.”
Schulte said Austin’s legal market is also benefiting from changes inside large firms. As artificial intelligence reshapes legal work, many firms are rethinking how they hire and train junior lawyers.
“Maybe firms need fewer junior associates at certain levels,” she said. “That leaves some really high-quality attorneys flowing into regional firms, boutique firms and mid-market firms. Those firms are benefiting from that talent.”
More than bigger paychecks
The salary numbers tell only part of what’s changing. Today’s law graduates increasingly evaluate employers based on long-term career development rather than simply chasing the highest starting salary.
“Most of our students want to stay here when they graduate,” said Gayle Keahey, director of external relations at Denver Law. “That has to do with the connections they make while they’re here, the lifestyle and the opportunities. It’s always been that way; it only increased after COVID.”
For years, Denver firms could recruit lawyers without paying significantly more.
“The increase was overdue,” Keahey said. “It was easy to rely on, ‘It’s Denver. People want to come here.’ That is no longer the case. Firms realized they were going to have to pay more.”
Graduates are also asking different questions than they did a few years ago.
“They’re not going up to BigLaw salaries,” Keahey said of many regional firms, “but they’re also not going up to BigLaw billable hours. More recent graduates tell us they want work-life balance. They’ll take a little less salary and still have more life.”
A different kind of competition
San Diego’s salary story followed a different path. The city recorded 42% salary growth and 20% real salary growth between 2020 and 2024, placing it among the nation’s strongest-performing legal markets.
Judybeth Tropp, director of externships and pro bono programs at Thomas Jefferson School of Law, said much of that growth stems from a shortage of attorneys.
“We’re experiencing one of those moments where there’s more legal work than lawyers,” Tropp said. “Small- and midsize firms are paying more and someone can earn substantially more than they could have just a few years ago.”
Unlike larger metro markets dominated by BigLaw, San Diego’s legal economy includes a large number of boutique firms, growing regional employers and specialized practices serving biotechnology, intellectual property and life sciences companies.
“There is a ton of interesting legal work here,” Tropp said. “There are some noteworthy lawyers doing amazing national work.”
Schulte said that while BigLaw salaries continue climbing, many regional firms have found a different competitive advantage. They offer meaningful work, lower billable pressure and a quality of life that appeals to attorneys looking for long-term careers rather than the highest starting salary.
Talent shortages drive market
Salary growth is ultimately being driven by supply and demand.
Isaac Levet, managing director of Blackford Talent in San Diego, said salary increases that begin at the nation’s largest firms eventually ripple through the broader legal market.
“When the Cravath scale goes up, everybody else has to respond,” Levet said. “They may not match those salaries, but they have to raise compensation to stay competitive.”
Attorney shortages are apparent among boutique and midsize firms.
“Some smaller firms are willing to bring in attorneys from insurance defense, personal injury or public defender backgrounds and train them because there’s a shortage of lawyers,” he said.
That flexibility is opening doors for younger attorneys willing to develop expertise in high-demand practice areas.
Labor and employment law continues to be one of the strongest practice areas, according to Levet, while construction law, real estate litigation and general civil litigation also remain active.
“I’ve seen second- and third-year attorneys in labor and employment earning more than $200,000 because it’s simply a supply-and-demand issue,” he said.
Still, Levet cautions against evaluating opportunities based solely on compensation.
“Some of the big firms pay extremely well, but you’re paying for it with your time,” he said. “It’s important to ask whether that’s really the life you want.”
Boutique and regional firms often offer earlier client contact, stronger mentorship and faster professional development.
“There can be more mentorship, more client-facing work and more opportunities to develop practical skills early,” Levet said.
One of the biggest winners
Private practice was not the only sector to experience meaningful salary growth.
The NALP analysis found that public interest positions recorded some of the strongest inflation-adjusted gains in the entire dataset, even though salaries remain lower than private practice. Colorado provides one example.
“As recently as the Class of 2019, the median public interest salary for our graduates was in the mid-$50,000s,” Bono said. “Now the median is in the low $80,000s.”
Government positions also produced strong gains in several markets, while state clerkships outperformed federal clerkships after inflation.
Sullivan believes those trends reflect changing priorities among younger attorneys.
“Many graduates still want to make a difference,” she said. “Public service, government and public interest continue to appeal to people who are looking for meaningful careers.”
The employment experience
The salary data shows that the highest paycheck does not always translate into the strongest financial outcome.
Regional markets that once sat outside the traditional BigLaw spotlight are producing competitive salaries, meaningful inflation-adjusted gains and diverse career opportunities.
Schulte said many attorneys are intentionally choosing regional practices.
“You can have a lucrative and fulfilling practice matching a smaller platform to a local or regional client base,” she said.
For students deciding where to begin their careers, the choice has become more than following the biggest salary offer.
“Consider the entire employment experience,” Sullivan said. “Think about mentorship, professional development, specialized experience and where you’ll be five years from now.”
If the salary trends from 2020 through 2024 continue, the next generation of lawyers may find that some of the country’s most rewarding careers are no longer concentrated in its biggest cities, but in fast-growing regional markets where compensation, opportunity and quality of life are increasingly moving in the same direction.
5 to-dos before accepting the job offer
Higher salaries are grabbing headlines, but recruiters say your first legal job should be evaluated on much more than compensation. Jamy Sullivan, executive director of the legal practice at Robert Half, shares five factors every law student and early career attorney should consider before saying yes to an offer.
- Think long term, not just first-year salary
A higher starting salary may be appealing, but Sullivan encourages graduates to view their first position as an investment rather than simply their first paycheck.
“Consider the entire employment experience,” she said. “Your first job isn’t just about the next one to three years. It can shape your long-term career.”
- Find a firm that invests in you
Today’s strongest employers are competing for talent by offering more than higher compensation. Look for firms that provide:
- Formal mentorship
- Professional development
- Continuing legal education
- Leadership opportunities
- Clear advancement paths
“Firms continue to invest in legal talent,” Sullivan said. “It’s not only about finding the right people anymore.”
- Ask about the work you’ll do
Meaningful experience early in your career often pays bigger dividends than a larger paycheck. Questions to ask include:
- Will I work directly with clients?
- Will I gain courtroom or negotiation experience?
- Will I receive responsibility early?
- Will I have opportunities to specialize?
Those experiences can accelerate both professional development and future earning potential.
- Research the firm before you apply
Networking remains one of the best ways to learn whether a firm is the right fit. Sullivan recommends connecting with attorneys through alumni networks, bar associations and professional organizations before interviewing.
“Understand the culture of the firm,” she said. “That’s just as important if you’re going to make a career change.”
- Build your value proposition
Whether you’re interviewing for your first job or making a move after several years in practice, employers want candidates who can clearly explain the value they bring. Sullivan recommends preparing examples that demonstrate:
- Problems you’ve solved
- Results you’ve achieved
- New skills you’ve developed
- How you’ve used legal technology and AI responsibly
- The impact you’ve made for clients or employers
“Work on your story,” she said. “Practice how you’ll communicate those accomplishments and the value you bring.”
The bottom line
The NALP data shows regional firms are becoming increasingly competitive, not only because salaries are rising, but because many are offering what today’s lawyers value most: mentorship, meaningful work, career development and work-life balance.
For graduates weighing multiple offers, Sullivan said the best career decision isn’t always the one with the biggest paycheck. It’s the one that positions you for long-term success.
