For the second year in a row, the employment rate for new law graduates grew slightly, but the uptick was a result of law schools nationwide producing fewer attorneys. In fact, the actual number of graduates in full-time law jobs within 10 months of leaving campus declined year-over-year, according to new figures from the American Bar Association.

“It’s good news, bad news,” said Derek Muller, a professor at Pepperdine University School of Law, who tracks employment trends. “The prospects for law students are better simply because the classes are getting smaller. At the same time, is appears the market for legal graduates shrank last year.”