The Employment Outlook Less Bleak for New Accounting Grads

As the class of 2009 hits the job market, those graduating with degrees in accounting are finding that their employment prospects are a bit brighter than those of their classmates in other professional fields.

“The simple truth is there is always a need for accountants, and now there is so much more scrutiny on financial reporting, risk management, financial planning and fraud analysis.  Certainly, the fact that there is a move toward global standards will also require an enormous number of people who are fluent in both U.S. and international standards,” said Dennis R. Reigle, director of Academic & Career Development for the American Institute of Certified Public Accountants (AICPA).  “There are a lot of things happening right now that require accounting skills [so] we’re in a pretty active period.”

Reigle notes that while the overall national unemployment rate is edging toward double-digits, it is only about 4 percent within the accounting profession.  And while hiring is down in public accounting firms, opportunities do still exist.  New graduates are also finding positions with smaller firms, not-for-profit organizations, government agencies and corporations.

“I would put it in the context that hiring of new graduates is down in general.  Almost across the board hiring is much more conservative this year [but] in accounting, hiring is not down as much as in other disciplines,” he said.  “…There might be some percentage of accounting graduates who are not getting their ideal job, but in general terms, they are still getting jobs.”

Reigle’s insights are based in part on preliminary findings of the AICPA’s annual report, “Trends in the Supply of Accounting Graduates and the Demand for Public Accounting Recruits.”  The report, the 2009 version of which will be released on the organization’s website in June, examines enrollment, graduation and hiring activity and identifies current and key trends in accounting education and the hiring marketplace.

Initial results show that accounting graduation rates are up more than 3.5 percent over last year’s record high.  It also shows that enrollment into accounting programs remains very strong. 

The good news is that, even with the influx of new accountants into the market, their numbers are not yet exceeding available entry level positions.  Even with layoffs and hiring freezes affecting other sectors, new accounting graduates remain in demand.

“The Big Four are always hiring,” notes Reigle.  “They would be really in very difficult shape if they didn’t continue to hire, because once things turn around, if they had a big [hiring] gap, in a year or two they’d be in trouble.”

To that end, KPMG, PricewaterhouseCoopers, Ernst & Young and Deloitte have all been actively recruiting new graduates for entry level positions such as audit assistants and business analysts.  In published reports, Ernst & Young notes it has already hired 2,600 graduating seniors to meet current needs, while PricewaterhouseCoopers reports that its goal is to fill 3,000 positions.

The 2009 Student Survey from the National Association of Colleges and Employers (NACE) also reports positive hiring trends for accounting graduates.  Of all new graduates applying for jobs, 38 percent of those graduating with accounting degrees report having already found one. 

To maximize employment opportunities, AICPA’s Reigle suggests that future graduates focus on gaining some real-life experience through accounting internships or community service leadership roles.  New graduates should strive to pass the CPA examination as quickly as possible. 

“We’re in a period of fairly rapid change.  With the new administration and tax policies, there will clearly be a lot of new tax statues that [accountants] will have to know and a lot of push toward international reporting standards,” he said.  “The one thing I’d say is that keeping current and continuing your education in accounting statutes and standards will be more important than ever.  It has always been important, but its [importance] is accentuated.”
 

Also in this month's issue:

FASB Issues Additional Guidance, Disclosures on Fair Value Measurements and Impairments

Accounting Grads Survey