The Australian legal market suffered its fourth consecutive year of declining demand, according to a new report issued by Peer Monitor and Melbourne Law School, “2016 Australia: State of the Legal Market,” based on financial data drawn from the Australian offices of 21 major law firms.

Demand for Australian firms declined an average of 1.9% across firms within Peer Monitor in FY 2016, although the pullback was slightly smaller than the 2.0% drop in FY 2015. However, the law market continues to face financial hardship, with only approximately one-third of firms reporting revenue and profit growth in FY 2016.

This comes at a time when demand for U.S. large law firms has been largely flat according to Peer Monitor.