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As companies make wrenching adjustments in expenditure in response to prevailing market conditions, the job market turns bleak, people lose their jobs, homes are being repossessed.

We are left wondering how close we are from getting laid off. Common sense tells us that if we want a recession-proof career, the main thing is to focus on work that continues to thrive in such bad times.

In a recent manpower article by SMP Solutions, the legal profession was ranked at number 16 out of 20 top careers to pursue in a recession.

Other careers ranked above lawyers included doctors and morticians. The simple fact is, no matter how bad the economy gets, people do get sick and die. Therefore, doctors and morticians will have customers.

But what does the future hold for lawyers? Are we really as downturn-resistant as we think we are?

Early this year, it was reported that Clifford Chance launched a redundancy programme in its London headquarters to let go close to 80 lawyers. On top of this, partners were also reportedly asked to make cash contributions of at least £100,000 (RM511,900) to the business.

Several leading global law firms have predicted their revenues to sink deeper in 2009. So far, the full effects of the global recession have yet to hit our local shores.

There is currently no inkling (and I hope there never will be) of Malaysian law firms following suit and taking such drastic redundancy measures. Perhaps the most legal firms would do at this stage is to impose a hiring freeze.

Reportedly, Clifford Chance’s response to the credit crunch was partly due to its reliance on struggling practice areas such as private equity and capital markets.

In Malaysia, legal firms are seeing a noticeable slowdown in corporate work. One firm was said to be involved in two simultaneous initial public offerings of shares a year ago. This time round, their lawyers’ workloads have decreased and they are now helping the firm in other departments.

Some lawyers are of the opinion that legal firms in our country are still able to survive by dealing with local industries and companies which are heavily buffered by the Government.

Others remain optimistic that work will flow in as large companies acquire struggling businesses during the recession.

Another area of law arguably affected would be matrimonial law. Taking a simplistic view, lawyers in this area, especially in the US, are said to suffer due to the fact that there is now less money to fight over. This means that people might think twice about going through a divorce and tend to make their marriage work.

Areas of law which are economically stable globally would be areas such as banking litigation, corporate and commercial litigation, personal injury, probate, employment, medical law, and criminal law.

Take for example, bankruptcy. In times like these, more people lose their jobs and more businesses fail. As a result, lawyers get busier. And, with the rise in layoffs, lawyers enjoy an influx of work.

Firms like US-based Littler Mendelson for instance, reported a rise in billings of about 20% in November and in December 2008, compared with a year earlier.

In his keynote speech at Legal Week Litigation Forum in London last year, the former Lord Chancellor, Lord Falconer, predicted that there would be a boom in litigation following the aftermath of the collapse of Lehman Brothers.

This would be a turning point for litigation, springing from what was described as “the largest insolvency in the history of capitalism”.

Others have argued that there would be a rise of dispute resolution, as clients are forced to consider alternative measures such as mediation with legal costs escalating. Put simply, clients just won’t be able to afford going to court.

So the next question is how do law firms survive in such trying economic times? Lawyers USA posted an article pinpointing steps law firms should take to survive the recession.

Firstly, firms are encouraged to spend time on top clients, especially those who generate 50%-80% of the firm’s revenue.

Firms are also encouraged to focus on high margin practice areas, develop a business plan and referral network, and to communicate their expertise to clients via educational newsletters, continuing legal education presentations, blogging, podcasts, and other social media tools.

Some firms research on the impact of recession on their clients and then hold meetings with them to discuss new business strategies and to resolve problems.

Mergers and acquisitions lawyers in New York-based firm Skadden have switched to advising on divestitures or restructuring in the hope of maintaining relationships with their high-level clients.

Sole practitioners whose work has dried up are advised to be flexible by diversifying to other areas of law and to go where work beckons.

As the economy weakens, there’s no doubt that some will feel the pinch more than others. There may be an influx of work in one area while another area dries up.

Having said all this, legal firms should be wary. It’s no use if there is an increase in work load but difficulty in collecting fees.

At the moment, the full effects of recession on our legal profession are yet to be seen. All we can do is to keep vigil and prepare for the darker days ahead. Ultimately, the global economic downturn affects everyone – no job is truly recession proof.

The writer is a member of the Bar Council’s National Young Lawyers Committee (NYLC). Putik Lada, or pepper buds in Malay, captures the spirit and intention of this column – a platform for young lawyers to articulate their views and aspirations about the law, justice and a civil society. For more information about the young lawyers, please visit here