05 February 2010
Australia’s pool of accountants and auditors will slowly evaporate over the next three years but demand will be fuelled by corporate environmental disclosure policies and the anticipated emissions trading system, according to the Lloyd Morgan Accounting Skills Index.
The December quarter recorded an oversupply of approximately 2,000 accountants, which almost matched the previous quarter’s result. The number of surplus auditors rose by 100 workers, compared to the previous quarter.
The employment market for both occupations remains a long way away from its September 2008 peak when there was an undersupply of approximately 2,600 accountants and 300 auditors.
Those days aren’t expected to return within the next three years although job seekers will find employment easier to obtain.
Between now and the end of 2012, demand for accountants is forecast to rise by 4.5 per cent (approximately 7,000 accountants) while supply is forecast to rise by a slower 3.1 per cent (approximately 5,000 accountants).
The demand for auditors will decrease over the next three years, with a fall of 5.7 per cent in demand for auditors, with supply forecast to decline further, by 7.2 per cent.
Based on these figures supply and demand will almost be equal with only minor skills shortages expected or a “balanced” score of 100, according to the Index.
The Index translates the supply and demand numbers to create a skills barometer for accountants and auditors.
A score of 100 indicates equal tension between labour supply and demand. Anything greater than 105 on the skills shortage side of the Index is regarded as extreme shortage. A score of 95 to 98 is moderate. 95 is low.
In December, the Index for accountants recorded a 98.5 reading, up from 98.1 the previous quarter. It’s forecast to reach 99.9 in next three years, which is balanced. The auditing profession has been slower to recover, recording a 98.1 reading in December. This is expected to reach 99.9 by December 2012.
The anticipated move to a carbon trading system and green disclosure requirements for corporate was likely to fuel demand for number crunchers, according to Lloyd Morgan Executive General Manager Kym Quick.
“While the exact impact is uncertain, we expect that businesses will require the services of accountants to quantify and manage the risks and costs associated with carbon tax or carbon permit systems,” Ms Quick said.
Ms Quick said the slight rise in the Index in December was attributable to some employers seeking to recruit A-grade accounting professionals rather than an across-the-board spike in demand.
“The resilience of the Australian economy has meant that high quality candidates are coming from overseas where the GFC has had a greater impact, rather than rising from domestic retrenchments and voluntary job changes,” Ms Quick said.
“Many expatriates are deciding to return to Australia to escape the bleak economic circumstances and mass retrenchments experienced in some countries, especially the UK and Ireland where the impact was more severe.”
Ms Quick said that despite the availability of job seekers, a steady supply of top quality accountants remained weak at present with employer expectations of skills and experience differing from that of the candidates.
This is the first Accounting Skills Index produced by Lloyd Morgan, a specialist provider of recruitment services to the Accounting market. The Skills Index is developed by KPMG Econtech and is an extension of the Clarius Skills Index, which provides quarterly updates on the supply and demand of skilled labour across 20 occupation categories throughout Australia.
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