Apparently the recession officially ended earlier this year. Indeed, major bleeding within the legal profession generally has stopped. "Major bleeding," in this context, means widespread layoffs at large law firms and deep cuts in-house within struggling industries, such as finance and automotive. So, there is a basis for thinking that the job market for attorneys must be turning for the better.
Sadly, however, the supply of unemployed attorneys remains far ahead of demand. I think "static" is a fair assessment of the current job market, especially for inside counsel. When a company loses an attorney to retirement or a lateral move, at least that position is getting filled and legal departments are not losing headcount. However, my general counsel friends and clients tell me it's harder than ever to get approval for additional headcount. In fact, I'm hearing that many GCs risk a viscerally negative reaction and political capital if they even ask.