Dive Brief:

• The overall number of U.S. accounting students at colleges and universities rose 7.3% in September year-over-year, according to a release from the American Institute of CPAs citing the final fall enrollment data from the National Student Clearinghouse. The increase comes as the industry continues a multi-pronged effort to reverse a decline in accounting graduation rates that has persisted for several years.
• The rate of increase is more than six-fold the 1.2% increase seen across all majors, and marks the third consecutive year in increased accounting enrollments, although the pace has varied each year: spiking 11.3% YoY in the fall of 2024 and just 1.9% in 2023, according to the release. 
• "Three straight years of growth is energizing for the profession," Susan Coffey, AICPA's CEO of public accounting, said in a statement in the release. "The fact that enrollment was up this fall versus competitive fields of study signals that students are seeing the purpose, trust, value and financial security that accounting delivers — and they're choosing it."

Dive Insight:

The accounting industry and lawmakers have been working to tackle an accounting talent shortage and draw more students into the profession by changing licensing requirements to make it possible for CPA candidates to gain certification with a bachelor’s degreee rather than 150 college credit hours. To date, 25 states have changed their laws or accounting rules to make it possible to substitute more experience for a fifth year of post-secondary education. 

But other forces are also hitting the supply and demand affecting accounting labor force, such as AI and automation, the use of which is reducing the staffing needed for certain previously manual-intensive processes and salaries that have historically been lower for accounting majors.

Daniel Tinkelman, an accounting professor at Brooklyn College in New York, said he thinks the change in licensing rules is one of several factors at play behind the rise in accounting enrollment. “The shift in many states to a 120-credit rule is certainly helpful,” Tinkelman said in an email. “It makes an accounting degree more affordable, which is of course a big word these days.”

In addition, he said the industry may be drawing interest from students who would otherwise have pursued a computer science degree, who are now concerned AI may be hurting their prospects for coding jobs after graduation. “I just have the impression AI is affecting the need for coders,” Tinkelman said. “Accounting has been highly computerized for a long time now.”

According to the data, accounting also saw a slight uptick in undergraduate students choosing the subject compared with other business majors, with one in eight business students majoring in accounting in the fall compared to one in nine in 2023.  

At the same time, it is unclear how much the uptick in enrollment will translate into more graduates and certified public accountants. According to a biennial report released last year by the AICPA, the number of U.S. students who graduated with a bachelor’s or a master’s degree in accounting continued to shrink, falling 6.6% in the 2023–2024 academic year from the previous year.