Last year was another “extraordinary” one for Big Law, with healthy demand growth and double-digit increases in profitability across the legal industry, according to a new report. But law firms are heading into 2022 with significant challenges over talent retention and costs.

Increased costs related to the war for talent across the industry, as well as high associate turnover, started to catch up with law firms last year, the authors of the 2022 State of the Legal Market Report from Thomson Reuters and Georgetown Law Center noted this week.