NALP Foundation reports record 83% of 2025 law firm associate departures within 5 years[1][6]

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10

Why it matters

The NALP Foundation released its 2025 Update on Associate Attrition this week, reporting that 83% of associates who left U.S. and Canadian law firms departed within five years of hire—a record high. The overall attrition rate held at 19%, down slightly from 20% in 2024, but the early-departure metric has climbed steadily from 80% last year and 82% in 2023. Smaller firms under 100 attorneys experienced 24% attrition compared to 16-18% at larger practices. Associates of color left at significantly higher rates—25% versus 16% for White associates—while representing only 33% of 2025 hires, down from 36% the prior year.

The data comes from 128 participating law firms and reflects a multi-year trend. Despite 8.2% salary increases in 2025, 82% of current associates expect to leave within five years, with 16-17% planning to exit the legal profession entirely. The report does not break down departures by specific firm or identify which practices are most affected, though the pattern spans entry-level and lateral hires across all firm sizes. In-house moves account for 18% of departures.

For managing partners and talent officers, the numbers present a stark challenge: early attrition persists even as compensation reaches record levels and firm profits remain strong. Replacement costs for a third-year associate exceed $1 million, yet the leaky pipeline—particularly acute for diverse talent—suggests compensation alone is not solving retention. Firms should examine whether burnout, unmet performance standards, and career development gaps are driving associates out faster than pay increases can retain them. The divergence between associate compensation and retention rates warrants urgent internal review of work culture and advancement pathways.

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