Declining Pipeline and Accounting Program Enrollment

Definition

Overall enrollment in accounting programs has decreased, creating a long-term structural problem for the entire industry. This is a supply-side issue: fewer qualified accounting graduates enter the profession each year. Combined with workforce aging and retirements, this creates a shrinking talent pool that will persist for years. The impact is that firms cannot rely on a robust pipeline of entry-level talent to develop. This makes the staffing shortage a structural problem rather than a cyclical one. The cost manifests as: (1) permanent elevated wage/benefit costs to attract talent; (2) need to invest in training less-qualified candidates; (3) competitive disadvantage relative to other professions attracting better talent; (4) inability to grow firm capacity.

Why This Matters

Accounting education advocacy, alternative credential programs, career awareness campaigns, partnerships with educational institutions, non-traditional talent recruitment (career changers, boot camps)

Affected Stakeholders

Industry-wide, All practitioners

Related Business Risks