Job Losses at Accounting Firms

Source: CPA Trendlines

Following are excerpts from a blog entry of January 9, 2009, titled “The Recession Catches up with Accountants”:

In today’s government report, which showed the U.S. economy lost 524,000 jobs in December, a 3.9% month-to-month decline.

For CPA firms, employment rosters declined by 1,300 jobs, to 448,800 jobs, a 2.9% decline, in November, the latest period available. But looking at the year-over-year data, CPA firms actually added 20,300 new jobs, rising to 448,800 positions, a 4.7% expansion.

And tax preparation services continue to gear up for busy season, adding 10,500 workers, or 24.7%, in November, for a total of 53,000 employed. To be sure, the 53,000 figure is 24,500 less than the year-ago 77,500, but employment in tax services doesn’t usually peak until February.

Payroll services held up relatively well through November, finishing at 176,900 jobs, up marginally from the month-before figure of 176,300 and down only slightly from the year-ago 177,700. But reports from PayChex and ADP are not encouraging.

The rest of the accounting services industry ended November with 236,700 jobs, only minimally down from the month-before 237,200 and the year-ago 238,800.

To read the blog, click here and select the entry of January 9, 2009, “The Recession Catches up with Accountants.”

From CPA Trendlines, http://cpatrendlines.com/, January 2009.