New AICPA data signals serious issues in the CPA pipeline

Enrollment Trends - Accounting programs in U.S. colleges saw a 12% increase in student enrollment in 2024, although the number of bachelor's degrees fell by 10.3% from 2021-2022 to 2022-2023, with a slower decline of 3.3% the following year [1][2] Employment Landscape - Public accounting firms reported hiring 11,985 new graduates in 2024, with 75% being accounting majors, and three-quarters of firms expect to hire the same or more in 2025 [3] - However, the AICPA survey had a low response rate of only 1% from the 19,097 firms surveyed, limiting the reliability of the hiring data [4] Impact of Automation - Automation is increasingly handling tasks traditionally filled by entry-level positions in audit and tax, leading to a disconnect between education and employment [2][5] - 63% of accounting programs have incorporated instruction in AI, data analytics, and tools like Power BI, Alteryx, and Python, but the relevance of these skills is questioned as automation reduces the roles they were intended to fill [5] Career Development Concerns - The traditional apprenticeship model in public accounting is being challenged as machines can perform routine tasks faster and cheaper, potentially shrinking the pipeline of future partners in the profession [6]