Q: This fall, my child will be enrolling in college and anticipates majoring in accounting. What do you think of their prospects at finding employment upon graduation?
A: There is good news! You should find confidence in your child’s prospects of self-sufficiency with the results of AICPA’s recently released 2011 Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits. The survey indicates that accounting graduates have some of the brightest job prospects in the nation.
The report shows record numbers of accounting students and graduates, but also suggests that demand for new talent eventually could outpace supply.
The Supply Side
Overall, accounting student enrollments were up 6%, from 212,834 in 2008 to 226,108 in 2010. This is a sharp increase from 10 years ago, when total enrollment was 152,885.
The number of students enrolled in master’s degree programs continues to rise—to 29,464 in 2010 from 22,291 in 2008. This increase can be attributed to the 150-hour education requirement for professional accreditation that has been adopted by most states, including Texas, and is encouraging many schools to offer master’s degrees in accounting.
A record 68,639 students graduated with accounting degrees in 2010. Nearly 40 percent of accounting graduates hired last year by CPA firms had master’s degrees, compared with 26 percent in 2008. By contrast, 43 percent of graduates hired had bachelor’s degrees, down from 56 percent in 2008. The trend toward hiring master’s graduates is strong among firms of all sizes.
In general, it seems as though the CPA pipeline is continuing to grow, along with the level of education new hires are bringing to the table.
The Demand Curve
AICPA reports that almost 90 percent of accounting firms expect to hire the same number or more graduates this year compared with last year, and 71 percent of the largest firms anticipate hiring more than last year.
The AICPA report is supported by findings from the U.S. Bureau of Labor Statistics, which expects accountants to experience “much faster than average” employment growth in the coming years. The bureau’s 2010-2011 “Occupational Outlook Handbook” estimates 22 percent growth in accounting and auditing jobs in the decade between 2008 and 2018, adding that job candidates with professional designations, particularly CPAs, and graduates with masters degrees have the brightest outlook.
Consult a CPA
The increased demand is not so much an indication of a recovering economy as much as an indication of the growing complexity of financial and tax reporting requirements facing businesses. Whether the employer is in private industry, government or public accounting, there will be a continuing need to recruit new employees in an effort to meet the demand of a complex and changing financial reporting environment.
Count on Your CPA
As you start your adult financial life, it’s a good idea to get to know your local CPA. He or she can help you understand your choices and make the best decisions for your financial future. You may contact me at (409) 892-0233 or (409) 883-5306. My email address is brad@ekc-cpa.com.
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