July 15 2011

Total employment in the accounting and bookkeeping sector grew by 2,200 positions in June (preliminary, seasonally-adjusted), to 933,200, the fourth straight month of gains and the highest headcount since 944,600 in December 2008, according to new government data.

The surge is being fueled by big gains in tax prep shops and in payroll services. CPA firms slimmed down after tax season, as usual, but headcounts are still running higher than a year ago.

The growth in the accounting and bookkeeping sector came as the overall unemployment rate for the U.S. went from bad to ugly, rising to 9.2%, up 0.4 points since March. The private sector added 57,000 jobs last month, accounting for all the jobs created, with government employment shrinking 39,000 because of fiscal problems at local and state governments. The report also showed the average workweek fell to 34.3 hours from 34.4 hours. And average hourly earnings slipped one cent, the first decline since November and more evidence that wage-driven inflation is not a risk.

In accounting and bookkeeping, the average workweek rose to 34.8 hours (preliminary, not seasonally-adjusted) in the latest month available, May, up from 34.6 in April, and the fifth month in a row of increases.

Hourly earnings also advanced in accounting and bookkeeping, gaining a hefty $1.85 per hour, to $27.30 per hour (preliminary, not seasonally adjusted), the second month of advances.

In specifically CPA firms, however, overall staff levels declined.

CPA firm headcounts slipped 21,600 in May, to 398,600 employees (preliminary, not seasonally-adjusted). But that’s a gain of 3,400 jobs from the year-ago month. Still, it’s a far cry from the best May on record, 412,100 employees in 2001.

The average workweek was also down at CPA firms, to 36.2 hours, from 38.1 the month before and 36.5 the year before.

But hourly earnings rose to $32.06, up from $30.43 the month before and $31.96 the year before.

At, specifically, tax preparation services, post-season headcounts rose significantly in May, to 99,000 employees, from 53,400 the year before. The figures are preliminary, but they appear to mark a new record for the month since data started becoming available in 1990.

At payroll services, employment rose to 152,800 in May, up from 148,700 in April and 146,700 the year before. May’s headcount was the highest since 163,100 in December 2008. The workweek grew to 33.7 hours from 33.2 the month before. Hourly earnings rose to $20.62, up from $20.37 in the month.