Report highlights legal sector’s key economic role
An independent report has found that the legal sector is a key contributor to long-term economic growth in Ireland, with €1.4 billion worth of legal services exported internationally.
The KPMG report, entitled Economic Impacts of the Irish legal profession, was launched by the Minister for Justice, Home Affairs and Migration, Jim O’Callaghan today (22 October) at Ireland for Law’s Dublin International Disputes Week (DIDW).
The report, commissioned by the Law Society and the Bar of Ireland, says that a “trusted and predictable” legal system has been a key factor in making Ireland’s economy one of the most open and globally integrated in the world.
It highlights figures showing that countries with strong and impartial legal sectors and a strong rule of law tend to have a high GDP per capita, adding that Ireland was ranked ninth globally for its rule-of-law score in 2024.
Certainty
The report states that the 1,800 multi-national companies that have chosen Ireland as their European base are attracted by certainty and trust in the rule of law, as well as by talent and tax.
“Ireland’s legal system plays a vital role in national competitiveness, supporting employment, innovation, and economic stability,” it adds, citing Ireland’s common-law system, robust protections for intellectual property (IP), and contract enforceability.
KPMG finds that the top four sectors that engage with legal professionals are: financial services; technology, media, entertainment, and telecommunications; head office and management consultancy; and manufacturing.
It says that these fours sectors account for 50% of the domestic spending on legal and accounting services, as well as being responsible for a substantial portion of Irish economic activity.
KPMG points in particular to the legal sector’s role in facilitating knowledge-intensive and export-oriented sectors such as financial services, technology, life sciences, agri-food, and aircraft leasing.
10% increase in employment
The report says that the legal profession contributed €6.7 billion in gross value added (GVA) to the Irish economy in 2022 – €4.2 billon directly and an additional €2.5 billion indirectly.
It finds that more than 52,000 people are employed in legal services across Ireland – 25,000 directly and an additional 27,000 in the wider economy.
The total number of people employed in the legal sector increased by 10% between the 2011 and 2022 censuses, mainly due to a rise in the number of legal-support staff.
The number of solicitors and barristers practising over the past five years has remained stable, increasing by 4.8% over that time period.
The report finds that solicitors and barristers have become more concentrated in urban centres such as Dublin and Cork, which account for 77% of all solicitors and barristers.
The west of Ireland has seen the largest fall, with an 8% decrease in the number working in legal activities in the 11 years between 2011 and 2022.
Pro bono work worth €14 million
Legal firms also drive demand for other services, such as accountancy, management consulting, financial services, technology, and property, according to the report.
The report also highlights the legal sector’s role in enhancing access to justice and community support, saying that legal professionals dedicate over 9,300 days each year to pro bono work. It estimates the value of this work at up to €14 million.
It identifies AI, data management and protection, alternative dispute resolution (ADR), and combatting cyber-crime as the main growth opportunities for the legal sector.
Based on figures from Britain, the report estimates that ADR has the potential to contribute up to €200 million a year to the economy.
‘Courts need investment’
The KPMG report says that the efficient operation of the courts system is essential for economic prosperity, citing the independence of its judiciary and skilled practitioners as key strengths.
It points out that Ireland ranks seventh out of 30 countries for public trust in the courts and legal system, but adds that the courts need investment.
The judicial-system budget accounted for 0.07% of Ireland’s GDP in 2022 – the lowest share in Europe.
Minister O’Callaghan said that the findings confirmed that Ireland’s legal system was not only a cornerstone of democracy, but also a “vital driver” of economic success.
“At the same time, the report reminds us that access to justice must be available in every part of our country. My department will continue working with the legal professions to support access to legal services in regional and rural areas, ensuring that the benefits of a strong, modern justice system are felt by all,” he added.
Social impact
President of the Law Society Eamon Harrington said that legal professionals provided essential services to businesses across all sectors – from SMEs to multinationals.
“The legal sector underpins investment and innovation across every major sector of the economy, from financial services and aviation to life sciences and technology,” he stated.
“The analysis also helpfully explores the broader social impact of the legal profession, particularly in safeguarding the rights of vulnerable groups such as children, migrants, tenants, workers, and victims of crime,” the president said.