THOMSON REUTERS — Having regained their footing after navigating the depths of the pandemic, law firms are facing a growing talent war that threatens to upend the legal industry’s newfound momentum. But the 2022 Report on the State of the Legal Market, issued today by the Center on Ethics and the Legal Profession at Georgetown Law and Thomson Reuters Institute, warns: “The traditional law firm response of just throwing more money at the problem is not likely to work as well going forward.” The report notes the law firm market has rebounded strongly and firms are performing well financially despite the ongoing pandemic. Demand soared in 2021 following a disappointing start, driven primarily by real estate and corporate practices. Litigation is one of the major practice areas that is still below pre-pandemic levels. Firms continue to raise rates aggressively, helping push profitability to record levels.