Académique Documents
Professionnel Documents
Culture Documents
Australia
May 2015
Occupations in cluster
Rating
2211 Accountants
No shortage
Key issues
ISSN: 2201-2141
There continue to be large numbers of qualified applicants for accountant positions. The key feature
of this labour market is the significant number of qualified applicants who are regarded by employers
as being unsuitable.
o There were, on average, around 22 applicants per vacancy who were known to hold relevant
qualifications at the bachelor degree or higher level1, but just 2.6 per vacancy were assessed as
being suitable.
There is a marked variation in the size of candidate fields between metropolitan and regional
vacancies, with regional employers attracting fewer applicants. Nonetheless, there were still around
13 applicants for each regional vacancy, on average, suggesting competition for available positions is
strong in most locations.
o Less than 2 per cent of surveyed employers did not attract any applicants for their vacancies
(below the average across all assessed occupations of 5 per cent).
Almost a quarter of surveyed vacancies remained unfilled six weeks after advertising in 2015, but
unfilled vacancies were limited principally to New South Wales (despite there being 18 or more
qualified applicants for each unfilled vacancy in the state and some employers receiving many
unsolicited applications from experienced accountants) and regional Queensland.
The research suggests that there is a significant discrepancy between employers needs and the skills
of applicants. Demand for accountants, though, is subdued and some employers (notably in regional
Queensland) displayed no urgency to fill their vacancies, preferring to wait for an ideal candidate.
Key factors in relation to applicants unsuitability relate to experience. In particular, there is a
mismatch between the level of experience of applicants and that sought by employers and between
the specific experience of applicants and the specialisation required for available vacancies. Poor
communication skills continues to be noted as an important reason that many applicants are
regarded as unsuitable.
The number of domestic student completions in bachelor degree studies in accounting is low
compared with international student completions in this field, and the number of domestic student
completions specialising in accounting has not changed significantly over the last few years.2
Employment outcomes for domestic accounting graduates are at their weakest level since the early
1990s recession.3
This may understate the real number as some employers did not assess all of the large number of applications they received and were
consequently unable to determine applicants qualifications
2
Department of Education, Higher Education Student Data Collection: Award Course Completions, Customised tables
Labour Market Research and Analysis Branch
Department of Employment
Page 1
Vacancies were surveyed across the three individual occupations included in the accountant category
in the Australian and New Zealand Standard Classification of Occupations (ANZSCO), i.e. accountant
(general), management accountant and taxation accountant.
o Although 2011 Census data show that around 90 per cent of accountants are accountants
(general), the surveyed vacancies were split more evenly across the three occupations.
The surveyed vacancies included a range of specialisations and tasks as well as levels of seniority,
covering junior positions to senior supervisory roles, and included specialist accounting firms as well
as companies operating across other industry sectors.
Almost 30 per cent of surveyed vacancies were in regional areas. This compares with around 20 per
cent of accounting employment being in regional locations4.
Employers generally sought bachelor degree qualified accountants with many also requiring
certification as a Chartered Accountant (CA) or Certified Practising Accountant (CPA) and a minimum
of five years of experience.
There were similar candidate numbers in 2013-14 and 2014-15.
o In 2014-15, there were 34.0 applicants per vacancy, on average, of whom 22.4 held accounting
qualifications at the bachelor degree or higher level, but just 2.6 per vacancy were considered by
employers to be suitable.
o By comparison, in 2013-14 employers attracted 36.0 applicants per vacancy on average, of
whom 5.8 were considered to be suitable.
Around 45 per cent of surveyed employers attracted in excess of 20 qualified applicants, with
14 per cent attracting more than 50, and 16 per cent attracted fewer than five.
There was a notable fall (of 12 percentage points in the proportion of vacancies filled in 2014-15 to
76 per cent. This is around the same as the proportion filled across all assessed occupations
(73 per cent) but slightly below the average for all assessed professions (78 per cent).
Figure 1: Proportion of vacancies filled (%), average number of applicants and suitable applicants
per vacancy (no.), Accountants, 2007-08 to 2014-15
3
4
GCA, Graduate Destinations Tables and Figures, 2013 and GCA, GradStats, 2014
ABS, Census of Population and Housing, 2011
Page 2
A few vacancies were unfilled because applicants lacked the required level or type of experience.
Others attracted suitable candidates, but they did not accept offers of employment as
o they were seeking higher remuneration which employers were unwilling or unable to provide, or
o they withdrew their applications before an offer was made.
A small number of vacancies which attracted 20 or more applicants remained unfilled despite
attracting qualified applicants, as these accountants were considered to be unsuitable or the
preferred applicant withdrew.
A lower proportion of vacancies was filled in regional locations than in metropolitan areas
(65 per cent compared with 81 per cent), but regional employers generally attracted large
numbers of applicants and had the choice of multiple suitable applicants (12.7 applicants per
vacancy, on average, of whom 1.7 were considered to be suitable).
o All employers who were recruiting for regional vacancies attracted applicants and very few did
not have interest from suitable applicants.
Unsuitable applicants
It was more difficult to determine the number of applicants who were qualified in this years
research, as some employers noted that they did not assess all of the large number of applications
they received and were consequently unable to provide information about the number of candidates
who held relevant bachelor degrees or higher qualifications.
Some applicants were unsuitable because they were unqualified (although some were close to
finalising their studies). Nonetheless, there were large fields of qualified but unsuitable applicants.
Key reasons applicants were not considered by employers to be suitable were
o insufficient experience (employers reported that they often attracted large numbers of
graduates for positions which required significant years of experience)
o lack of specific experience (such as in the provision of strategic taxation advice, commercial or
business or in a particular sector)
o inadequate knowledge of Australian accounting (some were overseas qualified and had little
Australian experience)
o inadequate written and oral communication skills
o not being CA or CPA accredited
o inability to liaise face-to-face with a diverse client base
o lack of understanding of the employers business needs.
Other commentators support the importance of strong communication skills to be suitable for
accounting employment. Mr Peter Roebuck, retiring head of accounting at the University of New
South Wales noted "Poor communication [skills] is a significant reason why many new grads don't get
placed" and that "Accounting is also a people-based activity. If you can't work in teams or prefer to
work alone, pick another career."5
Australian Financial Review, India is the competition, retiring professor tells students, 23 February 2015
Page 3
There was above average growth in the level of employment of accountants over the five years to
May 2015 (up by 8.5 per cent compared with 7.2 per cent for all occupations), although growth was
weaker than that for professionals as a whole (up by 13.4 per cent).
There was relatively low growth over the year to May 2015 and employment fell slightly between late
2014 and mid 2015 (Figure 2).
o ABS Labour Force Survey6 figures show that employment of accountants increased by 0.8 per
cent (or 1,500) over the year to May 2015, to 183,900. This growth rate is below the all
occupations average of 1.8 per cent and the rate for professionals (4.5 per cent).
Accountants provide services to organisations across all industries.
o In 2014, though, 50.2 per cent of accountants were employed in Professional, Scientific and
Technical Services, 8.8 per cent in Financial and Insurance Services, 5.4 per cent in Public
Administration and Safety and 5.2 per cent in Manufacturing.7
Figure 2: Employment, Accountants, 10 years to May 2015 (000)
250
200
150
100
50
0
Vacancy levels
Although employment has risen, there has been no real recovery in the level of advertised vacancies.
o There were 1.6 per cent more vacancies advertised for accountants over the year to May 2015
compared with the previous year, but advertised vacancy levels are around 60 per cent below
the peak demand period of mid-2008 (Figure 3).8
Page 4
Source: Department of Employment, Internet Vacancy Index, 12 month moving average (Dec 2006 = 100)
Training
18000
Domestic - Postgraduate
International - Postgraduate
16000
14000
6639
12000
10000
6218
4556
1507
4000
2000
4647
5495
8000
6000
4556
6577
5805
1443
5656 5572
5854 6246
2006
2007
1505
1621
5961
6991
6023
1526
1733
8235
7565
5582
1306
1153
9989
6043
9614
5782
8482
5778
0
2008
2009
2010
2011
2012
2013
Source: Department of Education, Higher Education Student Data Collection, ASCED Accounting
10
Page 5
The number of international students graduating with a qualification in the field of accounting is
significantly larger than the domestic cohort, but international student completions peaked in 2011
before falling in each of the subsequent years.
Graduate outcomes
Graduate Careers Australia (GCA)11 data show that employment outcomes for accounting graduates
have softened in recent years (Figure 5).
o The 2014 GCA Australian Graduate Survey shows that 73.9 per cent of 2013 bachelor degree
accounting graduates were working full-time (as a proportion of those available for full-time
work four months after graduation), the lowest level since 1992. While the proportion of
accounting graduates employed was slightly stronger than the average for all bachelor degree
graduates (68.1 per cent), it was around 14.7 percentage points lower than that recorded for
these graduates in the 2008 survey (which showed the strongest outcomes over the past
decade).
o Figures for masters graduates from the 2014 survey suggest employment outcomes continue to
be weak, with 66.3 per cent of those who were available for full-time work being employed fulltime, well below the average for all masters graduates (80.5 per cent), and 14.1 percentage
points lower than in the 2005 survey.
Figure 5: Proportion in full-time employment, Accounting graduates, 2005 to 2014
100
90
86.9
85.9
86.4
88.6
85.1
79.1
80
78.3
79.9
77.4
80.4
73.9
76.1
75.2
70.7
72.3
70
68.4
68.9
73.2
66.3
61.7
60
(%) 50
40
30
20
10
Bachelor
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
Masters
11
Page 6
GCA data also show that just half the bachelor degree accounting graduates who were employed fulltime in 2014 worked as accountants. Another 16 per cent were employed as clerical and
administrative workers and 9 per cent as auditors, company secretaries and corporate treasurers.
Table 1: Top occupations, accounting bachelor degree graduates 2014 (% of those employed
full-time four months after graduation)
Top five occupations
Accountants
Clerical and Administrative Workers
Auditors, Company Secretaries and Corporate Treasurers
Business, Human Resource and Marketing Professionals
Sales Workers
%
49.6
16.4
9.0
2.1
2.1
In 2013, the median starting salary for accounting bachelor degree graduates was $50,000, slightly
below the average for all occupations ($52,500)12.
A number of studies and media reports also provide commentary on graduate labour markets in
accounting and the prospects for accounting students. Many of these point to the particular difficulty
international graduates experience.
o Some suggest that such graduates are excluded from many top graduate employers and others
comment that most of the small number of entry-level jobs in accounting specify the need for
permanent residency.13
Demand for accountants varies for many reasons, such as changes in taxation and other commercial
laws, changes in the demand for financial advice, the overall level of accounting work done in
Australia and the general level of activity in all sectors of business.
Commentary is somewhat varied about the current state of the labour market for accountants.
o Media reports suggest that some mid-tier accounting firms received almost 2,000 applications
for 85 graduate positions in 2014, equivalent to around 24 applicants per job.14
o Hays quarterly report, however, suggests that there is a pickup in recruitment activity and
candidate confidence. The report also notes that the number of available candidates is
decreasingleading to skill shortages which in some cases are becoming acute.15 The report
does not specify the nature of the shortages and the suggestion of significant shortages is not
supported by the Departments research or other evidence, including media articles which note
that educators concede that Australias tertiary system is producing too many accountants,
with the wrong skills, for the current market to absorb.16
12
Page 7
There have also been suggestions that work previously done by graduates has been sent
offshore. Mr Martin Bugeja, head of accounting at the University of Technology Sydney is
quoted as saying that internationalisation of accounting had made the job market more
challenging for Australian accounting graduates in the past three years as big chartered
accounting firms, investment banks and large corporations took entry-level jobs offshore.17
Mr Bugeja also suggests that students that didn't place in the top 20 per cent on grades were
struggling to secure employment.
In terms of future demand for accountants in Australia, most commentators suggest there will be
relatively large numbers of new jobs.
o CPA Australia and the Institute of Chartered Accountants Australia suggest that over the
medium, term openings for accounting jobs will number around 11,000 per annum. This is in
addition to unquantified demand for accountants working in management or related financial
and other services.18
o Robert Halfs research shows that more than half of CEOs in Australia say that they expect to
recruit new finance and accounting professionals in 2015.19
Technology changes and off-shoring are, though, likely to continue to effect demand for accountants
in Australia.
o A report released by Chartered Accountants Australia and New Zealand (CAANZ) and RMIT
highlights several challenges in terms of demand for Australian accountants, including
offshoring of work and the transformation from manual to automated processing which it
notes is likely to result in a loss of accounting jobs and affect current chartered accountants
(who it suggests will need to up-skill) as well as new graduates.20
o Some industry sources suggest that the lower Australian dollar may affect the quality of
accounting work undertaken offshore.21
The Department of Employment projects that, over the five years to November 2019, employment of
accountants will increase by around 13.3 per cent or 25,700, above the rate of growth projected
across all occupations (10.0 per cent), but below the average for all professions (14.2 per cent).22
Replacement demand, though, is likely to be relatively low.
o ABS job turnover data show that, annually, 5.2 per cent of accountants, auditors and company
secretaries leave their occupation group (compared with 11.4 per cent across all occupations)23.
o A relatively low proportion of accountants are aged 45 years or older (33.5 per cent, compared
with 39.1 per cent across all occupations) and the median age of accountants is 38 years
compared with 40 for all occupations.24
17
Australian Financial Review, India is the competition, retiring professor tells students, 23 February 2015
CPA and Chartered Accountants Australia and New Zealand, Joint submission to the Department of Industry, http://industry.gov.au/Officeof-the-Chief-Economist/SkilledOccupationList/Documents/2015Submissions/CPA-Australia-and-Chartered-Accountants-Australia-and-NewZealand.pdf (last accessed 7 July 2015)
19
Robert Half, 2015 Robert Half Salary Guide, www.roberthalf.com.au/accounting-salary-guide (last accessed 7 July 2015)
20
Evans.E, Burritt.J, Guthrie.J, Chartered Accountants Australia and New Zealand and RMIT, Future Proofing the Profession: Preparing
Business Leaders and Finance Professionals for 2025
21
AccountantsDaily, Deloitte warns accountants on offshoring, 7 July 2015, www.accountantsdaily.com.au/breaking-news/8135-deloittewarns-accountants-on-quality-of-offshoring (last accessed on 7 July 2015)
22
Department of Employment, Occupation Employment Projections to November 2019
23
ABS, Labour Mobility, February 2013
24
ABS, Labour Force, Annual average 2014, Customised table
18
Page 8
A number of articles focus on the changing roles of accounting firms and on subsequent skill sets for
accountants. The accounting labour market, while not alone among skilled occupations in this regard,
appears to have a marked gap between applicant skills and attributes and those required by
employers, which results in relatively large numbers of qualified but unsuitable applicants for
advertised vacancies.
o The Hays Quarterly report states There has also been an increase in roles that require well
rounded experience rather than one particular skill set and notes that all employers are being
very clear in their requirement that candidates must have systems experience. Cultural fit is
important too.25
o Jason Dale of CAANZ is cited in the report released by CAANZ and RMIT as noting that the
challenges facing the accounting profession relate more to skills gaps between graduate
attributes and employer requirements than to overall demand for accountants. He outlines a
number of attributes that graduates require, such as critical thinking, decision-making skills,
strong communication skills and a focus on ethics.26
o Some accounting firms suggest they are starting to hear criticism of the quality of graduates, and
suggest that this may be because of a shift in the type of skills professional firms need.27 Others,
though, suggest that 2015 had produced a bigger pool of higher-quality graduates to select
from than he had seen in eight years.28
25
Hays, Quarterly Report, Accountancy & Finance - Commerce & Industry, July - September 2015, www.hays.com.au/report/accountancyfinance---commerce-industry-695 (last accessed 7 July 2015)
26
Evans.E, Burritt.J, Guthrie.J, Chartered Accountants Australia and New Zealand and RMIT, Future Proofing the Profession: Preparing
Business Leaders and Finance Professionals for 2025
27
Australian Financial Review, Few jobs, but foreign students still arrive, 17 September 2014
28
Australian Financial Review, India is the competition, retiring professor tells students, 23 February 2015
Labour Market Research and Analysis Branch
Department of Employment
Page 9