Dive Brief:

• The number of undergraduate accounting majors enrolled in the 2025 spring semester at four-year colleges rose 11.3% to 188,571 compared to the year-earlier period, marking the second consecutive annual increase, according to a May 22 report from the National Student Clearinghouse Research Center. 
• The level, which outstripped the 4.8% increase seen in the overall business and related majors group which includes accounting, also stands about 0.1% higher than the 188,421 previous peak of accounting enrollment at colleges hit early in the pandemic, in the spring semester 2020. 
• The bump comes as the accounting industry has sought to reverse a decline in the number of accounting graduates in recent years as some students had been snubbing the profession because of comparatively low entry-level pay, rigorous requirements for licensure and other reasons. Since late last year at least 17 states have changed licensure rules for certified public accountants, with most establishing new paths to certification that effectively reduce the number of post-secondary years of education required to four or a bachelor’s degree. 

Dive Insight:

The recent rise in college students pursuing accounting comes as national post-secondary enrollment grew 3.2% overall to 18.4 million students, with community colleges seeing the largest growth, the report states. 

Jack Castonguay, an associate professor in accounting at Hofstra University in New York, said he believed the rise in enrollment was completely unrelated to the licensure rule changes, noting the initiatives are just getting underway this year. Among the factors he sees driving the student interest is “a flight to perceived relative safety” of the industry, which has historically drawn more students during times of economic uncertainty or economic downturns.   

“With the increased pressure on students to land a job immediately upon graduation, it is certainly possible the perceived shortage attracted students prioritizing employment opportunities,” Castonguay said in an emailed response to questions.

Still, he said that the accounting shortage is only a problem for small- to medium-sized firms, with Big Four firms signaling in recent layoffs that they have a surplus of accounting labor. He expects the current accounting enrollment levels will level off as demographic shifts prompt a decline in the number of college students.

“We will likely see steady declines in accounting students and college students overall for the foreseeable future,” Castonguay said. “This increase is likely just a temporary blip and not the start of an upward trend.”

A recent student pulse survey conducted in April by the American Institute of Certified Public Accountants along with the Future Accountants Sponsoring Organizations found that perceived job demand was the top reason (66%) students cited for for majoring in accounting and related fields, followed by earning potential (56%) and economic conditions (48%).  

AICPA CEO Susan Coffey called the positive trends in student interest in the profession “inspiring.” But, in a statement emailed to CFO Dive, the AICPA also said there’s still more work to be done to strengthen the accounting labor pipeline and keep those students in the profession. 

“It’s not just getting graduates in the door — we have to convince them an accounting career is something they will continue to find fulfilling and rewarding for the long term,” the statement said. “Using technology to eliminate rote work, creating shorter paths to advancement and fixing elements of work culture that lead to burnout or dissatisfaction are worthy goals — and many accounting firms and corporate employers are making great strides in these areas.”