A graduate holds their mortarboard cap in Los Angeles, California, U.S., May 12, 2017. REUTERS/Patrick T. Fallon

(Reuters) - Demand for legal talent at large law firms drove employment and salary figures for the law school class of 2021 to historic peaks, according to new data released Thursday.

The overall employment rate for 2021 law school graduates increased to 91.9%, a record last reached by the class of 2007, according to figures released by the National Association for Law Placement.

The 2021 figure represents a 3.5-percentage-point increase from a pandemic-related dip to an 88.4% employment rate for the class of 2020.

New grads taking jobs requiring passage of the bar exam grew to 78.2%, up from 74.6% for the class of 2020, and marking a record high point since NALP started using its current classifications in 2001.

The strong employment outcomes were driven by the largest law firms' hiring activity, said James Leipold, executive director of NALP.

There was "pent-up demand" for transactional work after early COVID-19 shutdowns, leading to accelerated and "super competitive" hiring for entry-level and other attorney roles, he said.

Leipold also pointed to multiple rounds of big law firm salary hikes in the past year, spurred by the competition for talent.

Many of the largest firms in the U.S. increased annual salaries for associates at all levels this year, where first-year lawyers saw an increase in base pay from $205,000 to $215,000.

The median salary for...

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