The accounting industry, long plagued by a shortage of young talent, is showing tentative signs of recovery. Recent data from the American Institute of Certified Public Accountants (AICPA) indicates that while the total number of graduates earning accounting degrees has declined, there is a noticeable increase in high school students opting for accounting as a career.
In the 2023-24 academic year, the number of graduates with a bachelor’s or master’s degree in accounting fell to 55,152, representing a 6.6% decrease from the previous year. This decline, although concerning, is less severe compared to the 9.6% drop in 2022-23 and the 7.4% decline in 2021-22. The pandemic significantly affected college completion rates, contributing to these trends.
Encouragingly, enrollment figures for high school students pursuing accounting degrees have risen. According to the National Student Clearinghouse Research Center, spring accounting enrollment for the 2024-2025 school year increased by 12% year-over-year, marking the third consecutive semester of growth.
Yvonne Hinson, CEO of the American Accounting Association, expressed optimism about this shift. “I am certainly seeing students more knowledgeable about the opportunities in accounting, and more students going into accounting in the US,” she stated. Hinson attributes this trend to improved pay and job stability within the profession.
The appeal of accounting lies in its attractive return on investment. Analysis by Student Choice, based on data from the Bureau of Labor Statistics, ranks accounting majors as the fourth-best degree choice after five years in the workforce. Engineering, computer science, and nursing hold the top three positions. Hinson noted that the promise of a stable career resonates strongly with students, as there is a consistent demand for accountants and certified public accountants (CPAs).
Employers are also adapting their practices to meet the expectations of younger generations. Hinson remarked, “Gen Z is just not going to do what we did… They’re just flat-out not going to do that.” To attract young talent, firms have established affinity groups, enhanced workplace culture, and embraced hybrid work models.
One significant change has been the adjustment of entry-level salaries. Historically, compensation for junior positions ranged from $55,000 to $60,000, but it has recently risen to around $85,000, with some cities offering salaries exceeding six figures. Hinson acknowledged this change, stating, “We’ve had a salary issue for a long time, and that has turned around.”
Technology is also transforming the accounting landscape. With the introduction of artificial intelligence (AI), the nature of accounting work is evolving. Raj Sharma, EY‘s global managing partner, highlighted that AI provides professionals with essential tools to enhance their productivity. At PwC, new hires are expected to take on responsibilities typically handled by managers within three years, as AI automates more routine tasks.
Despite these positive developments, Hinson cautioned against complacency. She noted that the increase in accounting enrollments is not uniformly distributed. While major firms and prestigious schools attract top talent, smaller firms and community colleges face challenges in maintaining enrollment levels.
“We see the enrollment cliff coming,” Hinson warned, citing demographic changes and the shifting perception of higher education as potential threats to the accounting profession’s future. The number of high school graduates is projected to decline, which could lead to fewer students choosing business-related majors, including accounting.
Hinson’s message to the industry is clear: “Don’t take your foot off the gas pedal. We’ve got to keep talking about how great this profession is and keep getting young people to go into it because we are going to need them.”
As the accounting profession navigates this critical juncture, the focus remains on sustaining momentum and attracting the next generation of accountants to ensure a robust future.
