Singapore - With this downturn, recruitment is expected to increase for smaller law firms as the big firms retain fewer pupils and junior lawyers.

For the past years, the big four law firms (Allen & Gledhill, Drew & Napier, Rajah & Tann and Wong Partnership) with 230 to 280 lawyers in their stable would take in the entire cohort of law students from the National University of Singapore as pupils, and the retention rate was up to 80%.

The smaller firms like boutique practice, Gateway Corp, found it difficult to compete with the high $2,000 monthly allowance provided to the pupils during the six months of training, and the subsequent starting salaries of $4,500 to $5,000.

In a report by The Business Times, pupils now tell Gateway that some bigger law firms like the big four would not retain them after the pupillage. On the other hand, smaller law firms say that they are still able to hire because they had not expanded as quickly during the boom years.

Managing director of Gateway, Max Ng, says that clients are now moving to smaller firms from the big ones because they are "more cost effective".

Firms like TSMP Law Corporation attract the top young talent by cutting expenses elsewhere. The firm's starting pay is $5,000 a month, and its partners' salaries are kept low to maximise cash flow.

Vice-dean of NUS law faculty feels that the recession is helpful in easing the shortage of lawyers in Singapore. He explains that the downturn is "probably helping to create a market equilibrium of sorts".