By Ringside Talent
December 13, 2025
The accounting talent shortage has been making headlines for years, but a closer look reveals something surprising.
While the overall number of accounting graduates has dropped significantly, the impact is not evenly spread across the accounting profession. New analysis shows that the decline is hitting certain areas, particularly public accounting and tax, much harder than others.
In fact, employment in audit appears to be holding steady, suggesting a more nuanced and targeted shortage than many expected.
The Bigger Picture: Fewer Graduates, Increasing Demand
According to the AICPA’s 2025 Trends Report, the number of bachelor’s and master’s degrees awarded in accounting dropped 7.8% and 6.4% respectively from 2021 to 2022. This decline follows years of steady annual decreases dating back to 2015–2016.
At the same time, large numbers of experienced accountants are retiring or leaving the field altogether. Meanwhile, demand for accountants continues to rise. Since 2020, the number of accounting and auditing jobs in the United States has grown nearly 10%, creating a widening gap between open roles and available talent.
Where the Gap Is Widening Most: Public Accounting and Tax
Although the talent pipeline is shrinking overall, the shortages are not hitting every profession the same. Data from the AICPA and Bureau of Labor Statistics reveals the most significant declines are concentrated in public accounting, particularly in tax and other non-audit roles such as valuation, forensics, and transaction services. Audit, however, has shown surprising resilience.
From 2014 to 2020, new grads entering audit increased by 7%, while tax saw a decline of 34% and “other” accounting fields dropped a staggering 77%.
These trends indicate that the overall shortage of accounting graduates does not automatically translate into a shortage across all accounting specialties. Instead, public accounting, especially tax, is facing a disproportionate impact.
Why Tax Is Being Hit Harder Than Audit
While both audit and tax are facing talent pressures, tax has been disproportionately affected. Compensation alone doesn’t explain the difference. In fact, salaries for early-career tax professionals are actually higher than those in audit, and that gap is growing. Yet fewer students are entering tax.
Research suggests that perception may play a major role. Students often view audit as offering broader exposure to business operations, clearer pathways to industry roles, and more diverse career opportunities outside of public accounting. Tax, in contrast, is sometimes viewed as more specialized, with fewer perceived exit opportunities. Whether these perceptions are true or not, they influence students’ early career decisions and contribute to the uneven distribution of talent.
A Shift Driven by Work-Life Balance
The shift away from public accounting is well-documented. Studies show that many accounting students lower their expectations of staying long-term in public accounting after completing internships, often citing workload and work-life balance.
While firms have made efforts to improve the early-career experience (through increased pay, scholarships, mentorship programs, and even major investments in technology) these improvements may not directly address the underlying concerns that drive students toward private roles.
What Tax and Public Accounting Can Do
Audit remains relatively stable, while tax and other specialized fields are struggling to attract new professionals. For firms feeling the impact, a few practical shifts can help:
- Sell the firm, not the role. Job postings and interviews often focus on the role requirements (which is great), but don’t talk about firm culture and what makes working there great. Be specific about what the day-to-day looks like and where it can lead.
- Move quickly. Strong candidates don’t stay on the market long. Streamlining your interview process and reducing time-to-offer can make the difference between landing talent and losing it.
- Work with a recruiter. Ringside Talent remains committed to helping organizations navigate these industry shifts and connect with exceptional accounting professionals
The talent is out there but reaching it means adjusting expectations and making a clearer case for why these roles are worth pursuing.
Schedule a call today and let’s find your next great hire.