Once upon a time, a law degree from the likes of Harvard meant not only that the job offers would come but that they would be substantial. A big check from a prestigious firm, of course, is a great way to start a career, as that name stays on your resume for the rest of your life. A decline in demand for legal services, however, has left the major law firms rethinking their campus hiring volume. As a result, even students from the top law schools are likely to have trouble landing their dream 90-hour-a-week jobs.

Skadden, Arps, Slate, Meagher & Flom, the top law firm in the United States by revenue, forecasted a 50% drop in summer hiring for next year, recruiting partner Howard Ellin told Bloomberg News. In 2009, Skadden brought in 225 students for the summer. Next year, only half that amount is expected.

After 15 years of earnings growth, the average law firm saw its profits tumble between 8% and 12% last year, according (subscription required) to The Wall Street Journal.

That decline is sparking layoffs, salary freezes and lower bonuses at law firms large and small, and a few former titans have closed their doors altogether. The firms that have been squeezed the most have been mid-sized practices that have cost structures that make it difficult to persevere through a downturn -- but lack the cache of the elite large-sized firms.

Investors will likely recoup only pennies on the dollar for their losses in this global meltdown, but it will be a godsend for lawyers.

I was going to begin this post with a lawyer joke, but I'm not going to. Just think of your own favorite lawyer joke and chuckle to yourself as you read this. Until I read this piece, I wasn't even aware that it is illegal for American law firms to go public.

But last month, Australian firm Slater & Gordon raised $89.7 million with the first law firm IPO in the history of the world, which makes it pretty exciting. Britain's Legal Services Bill, when it passes, will make it legal for British firms to offer shares to the public, and several firms are gearing up for that day.

With the recent IPOs of private equity firms and hedge funds, the potential for legal IPOs would present another new and unique offering for investors -- and a business model that Wall Street analysts will have to figure out a way to value.

This could be great news for lawyers. If America moves to make IPOs possible for law firms, partners in firms could be able to turn their stakes into millions when they go public.

In boom times, lawyers make money from dealmaking. And, when things go sour, lawyers make money from the rancorous litigation. Yes, it's a nice system. And, of course, the lawyers are in the feasting mode right now – especially in the wily world of private equity.

The American Lawyer has a great piece on the topic.

Structuring private equity deals is not necessarily complex (although, it can get somewhat tricky with club deals, which involve multiple private equity funds). As a result, more and more law firms are joining the party. Last year, there were 1,137 private equity deals – for a total of $476 billion. That represented more than a third of all M&A activity.

Something else: some private equity firms are hiring their own legal staffs. Hey, why pay the big-time fees?

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.