After one of the most challenging financial periods in recent memory, law firms are on diverging paths to recovery, according to a new report.

While every major practice performed “far” better than at the end of last year, and firms across the industry were buoyed by “historic” rate growth in the first quarter of this year, midsize and smaller firms have built relatively more from countercyclical demand in areas such as litigation and labor and employment, according to the latest Law Firm Financial Index from Thomson Reuters.