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Unpaid internships - great experience or a barrier to social mobility?

For graduates, unpaid internships can seem like an inescapable aspect of post-university life. You’re encouraged to take every opportunity, even if it means taking a financial hit. It’s an investment for the future, after all – a small sacrifice now for a potentially big gain in the future.

Graduates are expected to offer their labour in exchange for a glowing reference. But is it worth it? Well, if a new study is anything to go by, taking an unpaid internship may actually leave you worse off in three years than you would have been if you went straight into work.

The revelation comes from the Institute for Social and Economic Research at the University of Essex, which recorded the careers of tens of thousands of students over a six-year period. It found that three and a half years after graduation, former interns had a salary penalty of £3,500 against those who went straight into work, and earned £1,500 less than those who went into further study.

On average, unpaid interns took home £2,000 less than their peers, while this figure stood at more than £4,000 for those from disadvantaged backgrounds.

Angus Holford, leader of the study, commented that it illustrated how an internship doesn’t necessarily help – nor does it guarantee a step forward in their chosen career.

“I expect some people will find an internship that enables them to do the job they really want to do and that will have the big labour-market return but, on average, an internship you take won’t lead directly to a job in the profession you really wanted or the profession you did the internship in,” he said.

Significantly, the results also found that when compared to those who went straight into work, interns were 15% less likely to be working in a managerial role and were 8.8% more likely to be disappointed in their career.

Holford said that one reason for the earning disparity could be that graduates who took an internship were delaying the start of their careers, which could often see them end up in different occupations from the ones in which they did their work placements.

Internships do have some merits, though. Holford notes that 38% did the internship to see if they would enjoy it as a career, which implies that they are a good way to test out a role before they commit. Equally, for some graduates, being able to list an internship with a large organisation on their CV could open doors at other big companies in the future.

Ultimately, it is up to the individual to determine whether it’s worth it for them. Luckily, here at GradLink, our extensive job board features a plethora of paid overseas work opportunities. Covering a range of sectors, countries and industries, there is sure to be a vacancy that suits you. Get in touch or register with us today to learn more.