Every year, the NALP Foundation releases its "Update on Associate Attrition," and the 2025 data reveals a record 83% of associates left their positions within five years of hire, a slight increase from 80% in 2024. This trend might seem alarming, but for many in Biglaw, high turnover isn't just a consequence; it's part of the business model.

Biglaw firms thrive financially from the work of junior and midlevel associates, who bill hours that vastly exceed their compensation. This model favors a continuous influx of eager new lawyers over retaining more experienced, and hence costlier, senior associates who might push for partnership or higher wages.

This year’s overall attrition rate slightly decreased to 19% from last year's 20%. Interestingly, smaller firms, with 100 or fewer attorneys, experienced the highest attrition at 24%, suggesting that they struggle to compete with larger firms on compensation and opportunities. Large firms maintained a steady rate of 16% to 18%, a sweet spot that avoids both chaos from rapid turnover and stagnation from accumulating expensive senior staff.

A critical piece of the report highlights that 47% of associate departures were classified as "unwanted" by the firms, indicating they didn’t wish for these associates to leave. Conversely, 27% of departures were "desired," suggesting that these firms were either indifferent or pleased to see them go. This statistic is more pronounced among lateral hires, male associates, and associates of color, hinting at underlying biases in retention.

Moreover, there is a concerning disparity in retention rates between associates of color and their white counterparts, with the former leaving at a rate of 25% compared to 16% for the latter. This ongoing issue illustrates a "leaky pipeline" that diversity programs alone have not fixed.

On the hiring front, lateral hires outnumbered entry-level hires in 2025, reversing the previous year's trend. This shift indicates a preference for acquiring seasoned professionals who are less likely to leave before their fifth year, even though they come at a higher initial cost.

Also notable this year was the reduced rate of firms rehiring former associates, dropping from 11% of all hires to just 6%. This could reflect a decreasing interest from former associates in returning, or a reluctance from firms to rehire them.

The report also introduced a new dimension by asking if the lack of AI training and support influenced associates' decisions to leave. As AI becomes more integrated into legal practices, associates are looking for firms that provide adequate training and are proactive in adopting new technologies.

The 2025 attrition data underlines a business model in Biglaw that balances hiring and attrition to sustain profitability. While firms may publicly declare retention as a priority, the underlying data suggest a more complex reality where certain departures are seen as beneficial to the firm’s bottom line.