The accountant shortage is real and severe. Accounting graduates hit a 20-year low while demand remains strong — the BLS projects 124,200 annual openings. CPA exam pass rates (42-63% on core sections) further bottleneck the pipeline. For job seekers, this creates a seller's market with higher salaries, signing bonuses, and negotiating power.
- How severe the accountant shortage actually is (with data)
- Why accounting graduate numbers hit a 20-year low
- How CPA exam pass rates create a pipeline bottleneck
- Which accounting specializations face the biggest talent gaps
- What the shortage means for salaries and job security
- How to leverage the shortage in your job search
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Is there really an accountant shortage?
Yes. Accounting graduates hit a 20-year low in 2023-24, while the BLS projects 124,200 annual openings for accountants. Demand significantly exceeds supply, creating a talent crisis across public accounting, corporate finance, and government.
Why is there an accountant shortage?
Three factors: declining accounting graduates (down 30% from peak), baby boomer retirements, and low CPA exam pass rates (42-63% on core sections). Fewer people are entering the profession while experienced accountants are leaving.
What does the accountant shortage mean for job seekers?
It's a seller's market. Qualified accountants can expect multiple offers, higher starting salaries, signing bonuses, and negotiating power on benefits and remote work. Firms are competing aggressively for talent.
Will the accountant shortage end?
Not soon. While accounting enrollments showed double-digit increases in 2024-25, it takes 4-6 years for students to graduate and become CPAs. The shortage will likely persist through at least 2028-2030.
"We can't find accountants." This refrain echoes across CPA firms, corporate finance departments, and government agencies. The accountant shortage isn't just a talking point — it's a documented crisis with real data behind it.
For job seekers, understanding this shortage is strategic advantage. Let's examine the numbers.
How Severe Is the Accountant Shortage?
- Accountant Shortage
The accountant shortage refers to the gap between demand for qualified accounting professionals (CPAs, auditors, tax accountants) and the available supply of candidates. This shortage is driven by declining graduates, retirements, and barriers to CPA licensure.
The supply-demand imbalance is significant:
The math is stark: 124,200 annual openings versus roughly 55,000 graduates. And not all graduates become CPAs or even enter accounting — many pursue finance, consulting, or other fields.
The Retirement Wave
The shortage is compounded by demographics. Baby boomer accountants are retiring faster than new professionals enter:
- Average age of CPAs has increased steadily
- Partners at major firms are retiring in large numbers
- Institutional knowledge is leaving with experienced professionals
The shortage isn't static — it's worsening. Each year of below-replacement graduates compounds the problem. Firms that struggled to hire in 2024 are finding 2026 even more challenging.
The accountant shortage is driven by a fundamental supply-demand imbalance: 124,200 annual openings versus ~55,000 graduates, compounded by baby boomer retirements.
Why Accounting Graduates Hit a 20-Year Low
Accounting program enrollments have declined sharply over the past decade:
Accounting Degrees Awarded: The Decline
Bachelor's and Master's degrees in accounting
Why Students Are Avoiding Accounting
Several factors drive the enrollment decline:
Why Students Choose Other Majors
- 150-hour requirement adds cost with unclear ROI for non-CPA paths
- Perception of accounting as 'boring' or purely clerical
- Tech and finance careers appear more glamorous
- Busy season intensity is well-publicized
- Starting salaries lag tech and investment banking
The 150-Hour Problem
- 150-Hour Rule
Most states require 150 semester hours of education to become a CPA — 30 hours more than a standard bachelor's degree. This typically means a 5th year of college or a master's degree, adding $15,000-$50,000 in education costs.
The 150-hour requirement creates friction:
- Students must invest an extra year before they can practice as CPAs
- Many question whether the ROI justifies the additional time and cost
- Students pursuing non-CPA accounting roles see no benefit to the extra year
Some data suggests the decline may be stabilizing. Accounting program enrollments increased double-digits in 2024-25 at some institutions. However, these students won't enter the workforce for 4+ years, so near-term relief is unlikely.
Accounting graduates hit a 20-year low due to the 150-hour requirement, perception challenges, and competition from other careers. The pipeline is severely constrained.
The CPA Exam: A Bottleneck in the Pipeline
Even among accounting graduates, becoming a CPA presents another barrier. The exam is rigorous, and pass rates are low:
What Low Pass Rates Mean
With core sections (FAR, AUD, REG) averaging 50% pass rates:
- Many candidates fail at least one section
- Average time to pass all sections: 12-18 months
- Some candidates never complete the exam
- The 18-month window creates pressure and expiration risk
Age and Experience Factors
NASBA candidate data shows interesting patterns:
Candidates who take the CPA exam immediately after graduation have significantly higher pass rates. Delaying the exam while working reduces the likelihood of completion.
CPA exam pass rates of 42-63% on core sections create a bottleneck. Many accounting graduates never become CPAs, further constraining the supply of licensed professionals.
Which Accounting Specializations Are Hardest Hit?
The shortage affects different areas of accounting unevenly:
Tax and Audit: The Epicenter
Tax and audit face the most acute shortages:
- Tax: Seasonal demand creates crunch periods where firms literally cannot serve all clients
- Audit: Regulatory requirements (SOX compliance, financial statement audits) create inelastic demand
- Both specializations require CPA licensure for key functions
Geographic Variation
The shortage isn't uniform across the country. Rural areas and smaller cities struggle more than major metros:
- Large cities attract talent but also have more competition
- Smaller markets offer less competition but fewer candidates
- Remote work has somewhat equalized geographic access
Tax and audit specializations face the most severe shortages due to regulatory requirements and seasonal demand. Geographic location also affects talent availability.
What the Shortage Means for Salaries
The talent shortage has clear compensation implications:
Salary Pressure Points
- Starting salaries rising faster than historical norms
- Signing bonuses to attract experienced candidates
- Retention bonuses to prevent departures
- Accelerated promotion timelines
- Enhanced benefits packages (remote work, flexibility)
- Counter-offers when employees resign
The Negotiating Advantage
In a shortage market, candidates have leverage:
- + Multiple offers allow comparison and negotiation
- + Employers more willing to match competing offers
- + Flexibility requests (remote, schedule) more likely approved
- + Career advancement accelerated as roles open up
- + Job security is high — layoffs are rare
- − Heavier workloads as teams are understaffed
- − Less experienced colleagues may reduce team quality
- − Training and mentorship may suffer
- − Pressure to cover for open positions
The accountant shortage is driving salary increases, signing bonuses, and enhanced benefits. Candidates have significant negotiating power in this market.
How to Leverage the Shortage in Your Job Search
The shortage is your advantage — if you use it strategically:
Know your market value
Research current salary ranges for your experience level and specialization. The shortage means last year's data may understate current market rates. Use this information when evaluating offers and negotiating.
Create competition
Apply to multiple opportunities simultaneously. Having competing offers gives you leverage. Don't accept the first offer without understanding your alternatives.
Negotiate beyond base salary
The shortage makes employers flexible. Negotiate signing bonuses, remote work arrangements, accelerated reviews, and professional development funding. These additions can be worth $10,000+ annually.
Target your ideal roles
In a shortage market, you can be selective. Target companies, industries, and roles that align with your career goals rather than taking whatever is available.
Move quickly when ready
Good candidates don't last long in this market. When you find the right opportunity, move decisively. Delays can mean losing out to other candidates.
Don't undersell yourself. The shortage means employers need you more than you need them. Negotiate from a position of strength and don't accept offers below market rate.
The accountant shortage creates negotiating leverage for job seekers. Use it strategically to secure better compensation, benefits, and career opportunities.
Key Takeaways
- 1The accountant shortage is real: 124,200 annual openings vs. ~55,000 graduates
- 2Accounting degrees hit a 20-year low in 2023-24, down 30% from peak
- 3CPA exam pass rates (42-63% on core sections) create additional pipeline bottleneck
- 4Tax and audit specializations face the most severe talent gaps
- 5The shortage is driving salary increases, signing bonuses, and enhanced benefits
- 6Job seekers have significant negotiating leverage in this market
- 7Recovery will take years — the shortage will likely persist through 2028-2030
Frequently Asked Questions
When did the accountant shortage start?
The shortage developed gradually as baby boomers began retiring and accounting enrollments declined after 2015. It became acute around 2022-2023 when the graduate decline reached 20-year lows while demand remained strong.
Is the accountant shortage affecting Big 4 firms?
Yes. Big 4 firms (Deloitte, PwC, EY, KPMG) face the same talent constraints as smaller firms. They've responded with higher salaries, signing bonuses, and expanded recruiting — but still struggle to fill positions, especially in tax and audit.
Should I become an accountant because of the shortage?
The shortage creates excellent job prospects, but only pursue accounting if you're genuinely interested in the work. The career involves detailed financial analysis, deadline pressure, and busy seasons. Job security is high, but fit matters more than market conditions.
How much higher are salaries due to the shortage?
Estimates vary, but starting salaries have increased 10-20% above pre-shortage levels for many positions. Experienced hires may command 15-25% premiums over historical norms. Signing bonuses of $5,000-$15,000 are increasingly common.
Will AI solve the accountant shortage?
AI is automating routine tasks (bookkeeping, data entry) but cannot replace professional judgment required for audit, tax planning, and advisory work. The shortage is specifically for professional accountants and CPAs, not bookkeepers. AI may reduce demand for clerical roles while increasing demand for accountants who can leverage AI tools. See our full analysis on whether AI will replace accountants.
What can firms do about the accountant shortage?
Firms are responding by raising salaries, offering flexibility, expanding recruiting to non-traditional candidates, investing in automation, and advocating for changes to the 150-hour rule. Some are also hiring internationally or outsourcing certain functions.
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Sources & References
- Occupational Outlook Handbook: Accountants and Auditors — U.S. Bureau of Labor Statistics (2025)
- Learn more about CPA Exam scoring and pass rates — AICPA & CIMA (2026)
- Q4 CPA Exam Candidate Data — NASBA (2025)