The accounting industry is facing one of its most significant talent challenges in decades: a severe shortage of licensed CPAs. According to recent data, CPA-required roles now take an average of 73 days to fill—41% longer than comparable positions without the designation.
The numbers tell the story clearly. For every five open CPA-required roles, there are only three qualified active candidates nationwide. The number of people sitting for the CPA exam has declined by over 30% since 2016, and bachelor's and master's degrees in accounting continued to fall in the 2023-24 academic year.
What's driving this shortage? The traditional 150-hour requirement for CPA licensure has been a significant barrier. Many talented candidates choose other finance careers rather than invest the extra year of education. Additionally, the perception of public accounting as demanding with limited work-life balance has steered younger professionals toward corporate finance or tech roles.
The ripple effects are substantial. Three-in-four firms still plan to hire the same amount or more staff than in 2024, intensifying competition for a shrinking talent pool. The U.S. Bureau of Labor Statistics projects 136,400 openings for accountants and auditors annually over the next decade.
For accounting firms navigating this landscape, the key is developing a multi-pronged strategy. This includes competitive compensation packages, flexible remote work options, clear career pathways, and partnerships with recruiting specialists who understand the unique challenges of CPA hiring.
Some states are responding with reforms. Minnesota, South Carolina, and Washington have introduced measures to shorten the path to licensure, showing early indicators of reducing hiring delays by 4-8 days compared to states maintaining traditional standards.