Strong demand and productivity continue to propel the legal industry to new highs, but crushing expenses during the final part of last year have created some drag on the outlook for Big Law in 2022.

Overhead and talent costs increased noticeably in the final quarter of 2021, according to the most recent Peer Monitor Index report from Thomson Reuters, and those costs are expected to continue increasing as office returns become more concrete and law firms continue to pay more for in-demand associates.