Effect of Covid-19 on unpaid internships/interns from colleges

Unpaid internships are often viewed as a key stepping stone for college students entering the workforce, and for good reason. Research has shown that students who complete internships develop new skills and connections that significantly enhance their job prospects. In fact, studies indicate that graduates who have interned are 15% less likely to be unemployed and earn 6% more than those who did not have such experiences. As a result, internships are generally considered a crucial element of a college student’s journey toward securing a job after graduation.
However, as researchers studying the transition from college to work, we recognize that asking students to work for free presents significant problems. The economic challenges brought about by the COVID-19 pandemic have only compounded the issues surrounding unpaid internships. Beyond the legal and ethical concerns of not compensating workers for their labor, these internships disproportionately favor students from wealthier backgrounds. Students from affluent families are better able to afford the living costs associated with unpaid work, especially in expensive cities like New York or Washington, D.C., where many internships are located.
This situation has created what some observers, including legal scholar Jessica Curiale, describe as a “class divide.” Low- and middle-income students often find it difficult or impossible to accept unpaid internships, which adds another layer of difficulty to their already challenging pursuit of a degree and access to well-paying jobs. The challenges have only intensified in the current pandemic, which is marked by economic uncertainty and mass layoffs. On top of the stress caused by the health crisis, students are also coping with isolation due to ever-changing campus policies and the shift to online learning, all while trying to manage basic living expenses such as food, rent, and tuition.
Additionally, in the spring of 2020, 40% of college students lost an internship, job, or job offer, and nearly 60% faced food insecurity or homelessness. These issues are not new, but they were exacerbated by the pandemic. Many students are now worried that their hard work and significant student loan debts may not lead to their desired careers, or even any employment at all. As the economy continues to struggle with high unemployment rates, many students are questioning if they will even find a job, let alone one that aligns with their academic ambitions.
Given these circumstances, one pressing question is whether the COVID-19 pandemic should signal the end of unpaid internships. If so, could the government, employers, and philanthropists provide enough funding to ensure that all internships are paid? Some unpaid internships are technically legal if they offer an educational experience, but in light of the current situation, we argue that unpaid work is indefensible. In 2019, an analysis of over 675,000 internship listings revealed that 71% did not mention compensation. This lack of pay is particularly common in fields such as political science, journalism, and human development, where unpaid internships are more prevalent compared to business or agricultural sectors.
Research also shows that unpaid internships tend to disproportionately affect women and those working at nonprofits. Our own data revealed that 76% of unpaid interns are women, and 55% work for nonprofit organizations. Given the pervasiveness of unpaid internships, we propose three key strategies to increase paid opportunities for all students.
First, the federal government, as the largest employer in the country, should set an example by making all internships paid. Representative Alexandria Ocasio-Cortez of New York made a significant step in this direction by announcing in 2018 that all interns in her office would be paid $15 an hour. Other offices have followed suit, and organizations like Pay Our Interns are advocating for paid internships nationwide. The government can take further action by allocating funds in stimulus packages to support paid internships at federal, state, and local government offices.
Second, creating tax breaks and grants for employers who hire student interns could make a big difference. Small businesses and nonprofits often struggle to offer paid internships because they lack the resources to support them properly. Federal funding could help convert unpaid positions at state agencies into paid internships, thus offering more opportunities to students across the country.
Finally, funding paid internships at nonprofits is critical. Nonprofits have been especially hard hit by the pandemic, and they often rely on unpaid interns to fill essential roles. Providing funding for paid internships would not only help these organizations manage the increased demand for their services but also help reduce the number of unpaid internships available.
Ending the practice of unpaid internships could help address longstanding inequalities, especially in the wake of the COVID-19 pandemic, which has exacerbated societal disparities. Making internships more equitable and accessible would provide a pathway to fairer opportunities for all students.