It Isn't Just Stocks Which Are Dropping: Internships Down 21 Percent
Employers are cutting the number of college students they will offer internship opportunities to by nearly 21 percent. Employers taking part in the National Association of Colleges and Employer's 2009 Experiential Education Survey cited budget cuts, decreased workloads, and company downsizing and restructuring as among the top reasons for bringing in 20.7 percent fewer interns this year than last year.
"The drop-off in internship opportunities mirrors what we're seeing in terms of full-time hiring for new college graduates," says Marilyn Mackes, NACE executive director.
In February, NACE released a report showing employers expected to cut new college graduate hires by nearly 22 percent compared to last year.
Despite the cutbacks in internship opportunities, the new NACE report includes some positive news, says Mackes.
"Most of the employers responding to our survey say they are committed to their internship programs and plan to continue with them," she says. "They report that they are reducing--not eliminating--their internship opportunities."
That commitment, says Mackes, is a reflection of the strategic importance of internship programs: For many organizations, the internship program is a key "feeder" for full-time hiring.
"Employers tell us that these programs are an effective means for identifying potential employees. Many organizations look first to their interns when they have full-time openings," says Mackes.
In fact, responding employers reported that more than one-third of the new college graduates they hired in 2008 came from their internship programs.
In addition, the report shows that salaries for interns at the undergraduate level will increase. Employers expect to offer their 2008-09 undergraduate interns an average hourly wage of $17.13, a 4.9 percent increase over the average $16.33 hourly wage earned by 2007-08 interns.
"Nearly all of the organizations that took part in our survey pay their interns, and the increase is perhaps another indication of the value employers see in these programs," says Mackes.
The smart companies, nimble startups and progressive large organizations, will continue to hire interns. These places know that talent is everything and that young people are so connected that they can be game-changers. Thanks for the article!
I think interns ROCK and it's sad that given the economy, that many of them probably aren't able to partake in interships because their parents can't help them foot the living costs associated with taking one. Combine that with employers cutting the wages for internships and you get the 20% decrease. Sad really.
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