Young lawyers face case of unemployment

Enn Tosso
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Photo: Mihkel Maripuu

Jobs are scarce for newcomers, at law offices. State-financed legal aid, however, repels with lowly wages.

With lawyers abounding and competition tough, would-be-advocates left out of law offices often need to find other options – like offering legal assistance provided by the state; that, however, is tough work for poor pay.

As admitted by Bar Association chairman chief Sten Luiga, over-production of lawyers has been talked about for years now; and, to a degree, that is indeed the case. The layers launching their careers ten-twenty years ago have long ways to go, until vacating their spots. New positions are not added at the corresponding speed.

«On the basis of applications filed for jobs, I may confirm that these [applications] are on the increase, year by year. Few will make it; no substantial market enlargement is in sight,» said Mr Luiga, still adding that as law can be practised widely, many would surely find employment in other organisations.

«Bar Association having close to eight hundred members, people keep moving in and out; in a large organisation, there will always be some vacancies; even so, this would never match the volumes of new aspiring lawyers.»

Estonian legal services market is worth about €55-60m a year. «Regarding services provided by law offices, overall, I may definitely say that offer exceeds demand; clients having wide options of choice,» affirmed Mr Luiga, stressing that competition is especially intense in business consultations.

At the same time, it may be assumed that the trend is towards servicing the wider population. «For offering wider services, the hindrance is high cost price of lawyer services, the population’s comparatively low purchasing ability, and the almost non-existent legal expenses insurance and financing system,» said he.

Mr Luiga explained that, as a whole, the state legal aid system makes about five per cent of total volume of lawyer services, not having a noticeable effect on the market as a whole – of the 800 Bar Association members, about 70 are constantly offering state legal assistance, with another 50 doing that occasionally.  

«Rather, state legal assistance is, in Estonia, declining yearly; and, due to constant underfinancing, it is extremely unpopular amongst young lawyers,» admitted he. «That is extremely hard work, with fees constantly below market average, rules being very tough, and those seeking legal aid vastly the difficult contingent.»

As pointed out by Mr Luiga, for the above reasons state legal aid is held up by older and experienced layers; the sustainable development thereof being held up by lack of financing. Also, he pointed at the example of Finland, with close to €70m invested into state legal aid system.

For contrast: in Estonia, about €3.5m is available. «Surely the need for legal aid and cost of living will not differ by over twenty times. With a divergence like that, I do not believe in a considerable increase in state financed legal assistance. Rather, faced with scarcity of jobs, the younger, brighter and language-skilled lawyers will move over into [other areas of] private or public sectors,» said Mr Luiga.

Toomas Prangli, senior partner at law office  Sorainen in Estonia, said that legal market linked to commercial law develops in step with overall economy – with moderate growth expected in Estonia and Baltic States in foreseeable future, law offices are hoping for the same.

Still Mr Prangli said that if, in a market economy, oversupply would lead to drop of prices, the trend has rather been to the contrary with moderate price rise on legal market: «Business clients of law offices do expect better efficiency than before, increased quality of services.»

«These past years, many spin-offs have emerged from other larger offices, specialising in specific areas – and being quite busy. Thus: there is space on the market, if you are able to offer something,» noted he.

Mr Prangli praised the Bar Association for improved organisation of state legal aid and the launching of information system thereof. «This has considerably improved availability of legal aid; and the well-functioning system is indeed better received by lawyers and clients alike,» said he.

In his eyes, the «overproduction» of lawyers is not much of a problem however, as legal knowledge comes in handy in various fields and endeavours.

As stated by sworn advocate Allar Aru of law office Tark Grunte Sutkiene, there is strong supply in the realm occupied by all major law offices: commercial law. «At the same time, that is the area with the heaviest workloads; periodically, the balance may shift back and forth, depending on the amount of big deals in the making. That will determine if there is excess supply at a certain moment or not,» said he.

As stated by Mr Aru, most young lawyers, finally ending up at law offices, would realise that wages are linked to contributions and skills. «Naturally, there always is the gap between overall expectations and the real market situation,» he added.

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