Shifting demand: A new dawn for Chartered Accountant recruitment in South Africa?

Not so long ago, we faced a significant shortage of South African Chartered Accountants remaining within our borders, creating challenges for Chartered Accountant recruitment locally. Several factors contributed to this exodus:

1. A Decrease in Qualified Chartered Accountants (CAs): Marginally fewer candidates were successfully qualifying from the Assessment of Professional Competence (APC) exam.
2. Global Demand for Auditors: Increased regulations and scrutiny in auditing, especially post the global financial crises, expanded the workload for auditors worldwide. This left audit firms understaffed, necessitating the recruitment of skilled professionals, and young South African CAs became highly sought after in global Chartered Accountant recruitment efforts.
3. Political Instability: South Africa’s political landscape, marked by uncertainty and instability, served as a push factor, encouraging these professionals to seek greener pastures abroad.
4. Remote Work Trends: The advent of remote work opened up opportunities for CAs to stay in South Africa while working on international audit assignments at competitive rates. This trend, coupled with rising local salaries, led to uncomfortable salary inflation for newly qualified CAs.

The Winds of Change

However, the situation is rapidly evolving, and the dynamics that once drove South African Chartered Accountant recruitment abroad are shifting:

1. Apprehension in Western Markets: The UK and US labor markets are experiencing substantial uncertainty. With recession fears looming large, employees are increasingly reluctant to resign, fearing they might be the first to go during layoffs.
2. Anti-Immigration Sentiment: A growing wave of anti-immigration sentiment in the US and parts of Europe is making it more challenging for foreign professionals, including South African CAs, to find opportunities abroad.
3. Corporate Restructuring: Some large audit firms in the US have been laying off hundreds of employees at all levels, despite still having personnel with visas awaiting deployment. In some cases, firms are overstaffed and are asking the US to absorb surplus staff to alleviate pressures on member firms.
4. Resurgent Confidence in South Africa: Following the establishment of the Government of National Unity (GNU) post-elections, confidence in the local market has surged. This coincides with the reduction of load shedding, making South Africa an increasingly attractive place to live and work.

The Message: A Turning Point

For candidates considering a move abroad, the window of opportunity may be narrowing. With economic uncertainty in key global markets and rising barriers to immigration, securing a position overseas may become more challenging.

Conversely, the local market for newly qualified CAs is set to become more competitive. However, with South African banks aggressively seeking new funding opportunities after a period of austerity, a hiring surge is anticipated. Banks are often the catalyst for broader market activity, and their recruitment drive could signal the start of a more robust job market for finance candidates in South Africa.

In this changing landscape, we may witness a reversal of the brain drain, with South African Chartered Accountants returning home. The grass may indeed be greener here, as the local market strengthens and opportunities abound.

As we move forward, the South African CA profession is poised at the cusp of a new era—one where local opportunities might outshine those abroad, offering a promising future for those who choose to stay or return home.