The accounting and finance industry experienced continued demand for professionals in 2022. Unemployment rates remained low, ranging from 3.3% to 4% nationally and around 2.7% in St. Louis.
Due to this high demand, companies were offering substantial salary increases, with new hires in the accounting and finance fields receiving 10-20% higher compensation. Some individuals even saw significant increases of 50% or higher.
Despite the rising salaries, there is a shortage of qualified accountants in the market. This shortage has been a long-standing issue, exacerbated by the decline in the number of job seekers during the pandemic.
Employers have struggled to find qualified workers, leading to challenges in filling positions and driving the need for higher salaries and temporary workers. The accounting and finance industry has seen several trends and developments in the last few years, which have had an impact on salaries.
Here are some key points to consider:
- Buoyant Job Market: The accountancy and finance job market has remained strong, with a significant number of employers raising salaries in the past year. This indicates a healthy demand for professionals in this field.
- Salary Increases: Salaries in the accounting and finance industry have been on the rise. In fact, the salaries offered to U.S. accountants and auditors experienced their quickest pace of growth in recent years. This suggests that employers are recognizing the value and importance of these professionals and are willing to offer competitive compensation packages.
- Projected Salary Growth: Several public accounting roles saw higher salaries going in 2023 compared to 2022. This indicates that the trend of salary growth is expected to continue in the coming years.
- Shortage of Accountants: Despite the rising salaries, there is a national shortage of accountants, according to industry observers. Increasing pay alone may not be enough to address this shortage, but it certainly makes an impact in attracting and retaining talent in the accounting and finance industry.
- Fluctuating Market Pressures: The finance and accounting industry has not been immune to fluctuating market pressures. Executives in this field have been adjusting their strategies to navigate changing economic conditions. This adaptability has likely influenced salary trends as well.
- Inflation and Salary Increases: It is worth noting that salary increases in the accounting and finance industry may not always align with inflation. Economic conditions and other factors can impact salary budgets differently than inflation rates. This suggests that salary growth may not always keep pace with the rising cost of living.
The accounting and finance industry has experienced a buoyant job market, with rising salaries and projected salary growth. However, there is also a shortage of accountants, indicating the need for additional efforts to address this issue.
It is important to consider the broader economic context and market pressures when analyzing salary trends in this industry. In an increasingly competitive and complex market, choosing the right recruitment partner can be the difference between success and stagnation.