What's Happening?
The American Institute of CPAs (AICPA) has released its 2025 Trends report, indicating a continued decline in the number of students graduating with accounting degrees. In the 2023-24 academic year, the number of graduates with either a bachelor's or master's
degree in accounting fell by 6.6% to 55,152. This decline is slower than in previous years, which saw decreases of 9.6% and 7.4% in the two prior academic years. Despite the drop in graduates, public accounting firms reported hiring 11,985 new graduates in 2024, with 75% of these hires being accounting graduates. The report also highlights a provisional increase in accounting enrollment for the 2024-25 school year, suggesting a potential future uptick in graduates.
Why It's Important?
The decline in accounting graduates poses a challenge for the accounting industry, which relies on a steady influx of new professionals to meet demand. The decrease in graduates could lead to a talent shortage, affecting firms' ability to service clients effectively. However, the report's indication of increased enrollment suggests that efforts to attract students to the field may be starting to pay off. This could stabilize the workforce in the coming years, provided the trend continues. The situation underscores the importance of initiatives aimed at making the accounting profession more attractive, such as increasing entry-level pay and reducing barriers to becoming a CPA.
What's Next?
The accounting industry may continue to focus on initiatives to attract more students to the field, such as enhancing the appeal of accounting careers and addressing the costs associated with becoming a CPA. The anticipated increase in accounting enrollment could lead to a stabilization of graduate numbers in the future, potentially alleviating the current talent shortage. Firms may also continue to adjust their hiring strategies to adapt to the changing landscape.
