Internships have become a very important activity for students, especially those who are about to spread their wings and go out into the real world. Studies have revealed that students who undergo internship have a better chance of landing full-time positions and even better pay. After all, intern groups usually serve as excellent future sources of talent for most companies, bypassing the need for applicant tracking systems.
However, the COVID-19 pandemic has left many businesses with no choice but to cut down or cancel altogether their internship programs. The economic downturn did not help either as companies have been scraping the bottom of the barrel for quality talent in view of the dismal job market. Here, we take a look at the latest internship statistics that would help both students and businesses better understand how internships remain important in these challenging days.
Internship Statistics Table of Contents
The COVID-19 pandemic has negatively impacted virtually every area of business, including internships. It is undeniable that interns benefit companies, helping them by providing much-needed manpower. But the onset of the pandemic had forced companies not only to settle for skeleton work crews but cancel internship programs in some cases. Now, this is a big deal as most interns are eventually offered full-time positions. Internship cancellations and the weak job market, therefore, pose an uncertain future to graduates.
To paint you a bigger picture of just how massive internship cancellations in the United States were, a study by Glassdoor has revealed that 50% of internship programs in the US were canceled during the spring of 2020. These cancellations occurred mostly in the travel and tourism industries.
Despite the gloomy outlook, many companies have turned to technology to salvage what they can of their internship programs. Many have started using technologies to keep their internship programs afloat. These include video conferencing software, which enables interns to stay in touch with their managers. On the other hand, some have taken a conservative approach to virtual internship, opting for the hybrid/in-person model.
General Internship Statistics
Interns in the United States have fueled the growth of many businesses. For decades, internship programs have attracted students as they are viewed as stepping stones to establishing a lucrative career. And this is true for many companies. The following are general internship statistics that students who are planning to get into internships can learn from.
- 60% of students have undergone internships or co-op since 2013. (Chegg, 2019)
- More than 50% of students who undergo internships do so more than once. (Chegg, 2019)
- 31% of student interns begin after graduating from college. (Chegg, 2019)
- Corporate intern recruitment begins eight months before the start of the internship. (National Association of Colleges and Employers, 2019)
- 300,000 – The estimated number of student interns in the United States each year. (Fast Company, 2019)
Internship & COVID-19 Statistics
And then there is the issue of the impact of the COVID-19 on internship programs. Many companies have shelved their internship programs in an effort to help curb the spread of the virus. However, there are also businesses that continue to offer internships, These organizations have turned to technology such as the best collaboration software, resulting in what is now known as virtual internships.
- 2% of businesses have reported revoking full-time job offers. (CNBC, 2020)
- 75% of employers made at least one change in their internship programs. (CNBC, 2020)
- 20% of employers are decreasing the number of interns for onboarding. (CNBC, 2020)
- 64% of businesses canceled their internship programs. (CNBC, 2020)
- 64% of those did not compensate their interns. (CNBC, 2020)
- 85% of students will not include canceled internships in their resumes. (Yello, 2019)
- 70% of students whose internships were canceled due to the pandemic admitted to being disappointed but understood the need. (Yello, 2019)
- 35% of students who took summer internships in 2020 were told they were going to be canceled. (TechRepublic, 2020)
- 24% of students were informed that they were to undergo virtual internships instead. (TechRepublic, 2020)
- 38% of college students weren’t planning on doing an internship in view of COVID-19. (Remote Internships, 2020)
- 37.6% of them say their internship did not push through as they were offered a new one. (Remote Internships, 2020)
- 14.2% of students had their internship replaced by a remote setup. (Remote Internships, 2020)
- 46.2% of students see internships as more important in view of the pandemic. (Remote Internships, 2020)
- 32.7% of students say the pandemic had no effect on internships’ importance. (Remote Internships, 2020)
- 21% of students say that the pandemic has rendered internships less important. (Remote Internships, 2020)
- 53.2% of graduating interns who applied for full-time positions got at least a single job offer. (College Recruiter, 2019)
- 4.4% of companies revoked their internship offers in view of the COVID-19 pandemic. (National Association of Colleges and Employers, 2020)
- 35% to 41% of companies have shortened the length of their internship programs due to the pandemic. (National Association of Colleges and Employers, 2020)
- the percentage of career centers that are planning on-campus career fairs dropped from 37% to 35% in 2020. (National Association of Colleges and Employers, 2020)
- Companies that have revoked internship offers revoked about two-thirds of their offers. (National Association of Colleges and Employers, 2020)
- Companies expect to attend both in-person and virtual career fairs in 2020. (National Association of Colleges and Employers, 2020)
Source: Remote Internships
Virtual Internships During the Pandemic Statistics
As businesses scramble to keep their operations running despite the disruptions caused by the COVID-19 pandemic, many have taken different approaches to their internship programs. Some have opted to cancel such programs while others turned to remote work by using the best remote office software to keep them going, albeit virtually. Here are some important statistics on virtual internships.
- 40% of businesses have turned to virtual internships. (CNBC, 2020)
- 99% of career centers continue to link to students virtually. (National Association of Colleges and EmployersACE, 2020)
- 84% of students expressed willingness to participate in remote internships. (HR DIVE, 2010)
- 67% of students who went ahead with virtual internships wanted daily check-in with managers. . (Yello, 2020)
- 51% of students who joined virtual internships were relieved over the non-cancellation of their internships. (Yello, 2020)
- 22% of those who joined virtual internships were worried about the quality of experience in virtual internships. (Yello, 2020)
- 12% of students who participated in virtual internships expressed worry over not being able to prove that they are ripe for full-time roles. (Yello, 2020)
- 9% of students who participated in virtual internships are hoping to meet new people in the course of their internship. (Yello, 2020)
- 4% of these students were relieved that they don’t need to travel for an internship, in view of the COVID-19 pandemic. (Yello, 2020)
- 1% of students who participated in virtual internships say virtual internships could be strange. (Yello, 2020)
- 40% of them want 5- to 10-minute check-ins with hiring managers. (Yello, 2020)
- 7% of college interns prefer to have 30 to 60-minute check-ins (Yello, 2020)
- 30% of them prefer weekly, 30- to 60-minute check-ins. (TechRepublic, 2020)
- 30% of college interns want to talk with their managers with frequent video conferencing. (Yello, 2020)
- 42% say they want to do the same every now and then. (Yello, 2020)
- 22% of college interns, on the other hand, say it does not matter. (Yello, 2020)
- 6% of college interns want to chat rather than use video conferencing. (Yello, 2020)
- 35% of say that virtual programming must be conducted multiple times for the entire class for the internship’s duration. (Yello, 2020)
- 41% of students say this should be done weekly. (TechRepublic, 2020)
- 20% of students prefer to hold virtual programming two to three times a week. Three percent, on the other hand, prefer it daily. (TechRepublic, 2020)
Internship Pay & Benefits Statistics
Tons of research have proved that internships work both ways—aiding students who are poised to leave the academe in securing full-time positions while helping businesses secure the manpower for their operations. However, not all enjoy the same internship benefits as reflected in our statistics. There are paid interns who get to enjoy the fruits of their labor. On the other end, there also exist unpaid interns who may or may not enjoy the little perks that businesses offer. Take a look at these internship pay statistics.
- Companies offer interns planned social activities and paid holidays. (National Association of Colleges and Employers, 2019)
- 59.4% of companies that provide relocation assistance give them to interns. (National Association of Colleges and Employers, 2019)
- 59.4% of companies offer co-ops relocation assistance. (National Association of Colleges and Employers, 2019)
- $4,167 – The median monthly salary of Boeing Co.’s interns. (Business Insider, 2019)
- $4,333 – The median monthly salary of interns at Dell. (Business Insider, 2019)
- $7,250 – The median monthly pay of interns at Microsoft. (Business Insider, 2019)
- $7,500 – The median monthly salary of Google interns. (Business Insider, 2019)
- 81.7% of paid interns immediately started looking for jobs. (National Association of Colleges and Employers, 2019)
- 69% of unpaid interns and 62.9% of those who did not receive internships immediately started looking for jobs. (National Association of Colleges and Employers, 2019)
- $50,000 to $55,000 – The expected salary of paid interns. (National Association of Colleges and Employers, 2019)
- Facebook planned to increase intern pay from $15 to $18 in 2019. (Vox, 2019)
- $8,000 – The amount that Facebook pays its interns. (Business Insider, 2019)
Paid vs Unpaid Internship
- $2,580- The median signing bonus for interns in 2019; for co-ops, it’s $3,546. (National Association of Colleges and Employers, 2019)
- Students without internship experience got 16% fewer job offers. (College Recruiter, 2019)
- 66.4% of graduates in 2019 who were paid as interns got job offers. (College Recruiter, 2019)
- 60.8% of interns got paid during 2019. (Thrive Global, 2019)
- Interns who are unpaid are most common in social services. (National Association of Colleges and Employers, 2019)
- 43.7% of 2019 graduates who had experience with unpaid internships were offered jobs. (Yello, 2019)
- Women are 77% more likely to get unpaid internships. (Yello, 2019)
- Students majoring in fields such as fashion merchandising, journalism, and human development are more likely to engage in unpaid internships. (The American Prospect, 2019)
- $12,986 – The estimated cost of unpaid internships in the US. (National Association of Colleges and Employers, 2010)
- $19.05 – The average hourly pay of paid interns with bachelor’s degrees. (National Association of Colleges and Employers, 2019)
- Unpaid internships are illegal. (College Recruiter, 2019)
- Only 43.7% of unpaid interns were offered jobs in 2019. (College Recruiter, 2019)
- Paid interns are 34% more likely to get at least one job offer after graduation. (College Recruiter, 2019)
- Tech companies like Uber, Facebook, Salesforce, and Google pay interns the most. (Business Insider, 2019)
- Finance and consulting companies like Deloitte, Goldman Sachs, and KPMG follow closely behind. (Business Insider, 2019)
- More than 84% of businesses offer planned social activities to unpaid interns. (National Association of Colleges and Employers, 2019)
- 59% of businesses help interns with housing/travel costs. (National Association of Colleges and Employers, 2019)
- 26% of businesses provide their interns with 401ks. (National Association of Colleges and Employers, 2019)
- Less than 18% of businesses provide interns with medical insurance. (National Association of Colleges and Employers, 2019)
- A measly 5% of businesses provide interns with tuition reimbursements. (National Association of Colleges and Employers, 2019)
Intern Employment Statistics
Indeed, the promise of stable jobs after internships is real. Hence, students have been flocking to internship programs as businesses continue to offer full-time positions to those who complete their internship programs. Consider the following statistics on internship employment.
- 57.5% of students who experienced internship and 43.5% of graduating students without internship exposure got a job offer. (College Recruiter, 2019)
- 56.1% of internships result in full-time jobs. (Fast Company, 2019)
- 53.2% of seniors who are graduating who applied for a full-time position got at least one job offer. (Yello, 2019)
- 57.5% of these had internship experience while 43.7% did not. (Yello, 2019)
- 6.4% of 2019 graduates with internship experience were offered jobs. (Yello, 2019)
- 70% of organizations offer full-time positions to interns. (National Association of Colleges and Employers, 2019)
- 80% of students take advantage of these offers. (National Association of Colleges and Employers, 2019)
- 56% of interns get full-time positions as a result of these offers. (National Association of Colleges and Employers, 2019)
- 43% of college graduates are underemployed in their initial jobs. (Burning Glass, 2018)
- $47.470 per year – the average pay of recent college graduates with full-time jobs. (Burning Glass, 2018)
- $37,330 – the average salary of graduates who are underemployed. (Burning Glass, 2018)
Intern & Co-op Retention Rates Statistics
The rewards that internships offer are reflected in the way interns are bent on completing them. In this way, they get better chances of being retained in their respective companies. Let’s take a look at some of the key intern retention rates statistics to date.
- Around 69% of 2019 graduates got through at least one Internship. (CNBC, 2019)
- 71.4% – The one-year retention rate for intern hires with internal experience. (National Association of Colleges and Employers, 2019)
- 59% – The one-year retention rate for intern hires with external internship experience. (National Association of Colleges and Employers, 2019)
- 50.2% – The one-year retention rate for co-op hires with internal experience. (National Association of Colleges and Employers, 2019)
- 42.2% – The one-year retention rate for co-op hires with external experience. (National Association of Colleges and Employers, 2019)
- 42.4% – The one-year retention rate for hires that had no co-op or internship experience. (National Association of Colleges and Employers, 2019)
- 43.9% – The five-year retention rate for intern hires with internal experience. (National Association of Colleges and Employers, 2019)
- 37.3% – The five-year retention rate for intern hires with external experience. (National Association of Colleges and Employers, 2019)
- 50.2% – The five-year retention rate for co-op hires with internal experience. (National Association of Colleges and Employers, 2019)
- 42.2% – the five-year retention rate for co-op hires with external experience. (National Association of Colleges and Employers, 2019)
- 94.9% of employers say that internships and coops are “very” or “extremely” important. (College Recruiter, 2019)
Organizations That Require Interns
Organizations, whether public or private cannot do without interns. Interns benefit companies by filling in needed manpower at much lower costs. Here, we’ll learn more about why organizations need interns and what they are doing to keep them.
- 89.4% of Congressional workers have undergone internships. (Chegg, 2019)
- More than 80% of Big Four accounting firms (PwC, Deloitte, KPMG, and EY) employees have undergone internships. (Chegg, 2019)
- Tech firms are big fans of employing graduates with internship experience, these include Google (78.3%), Facebook (80.2%), and IBM (70.1%). (Chegg, 2019)
- PwC offers more than 90% of its interns full-time positions. (PWC, 2019)
- Around 86% of law clerks have had internship experience. (Chegg, 2019)
- 3 in 4 entry-level hires in jobs like a reporter (82%) (audit associate (85%), and analyst (77%) have experience in an internship. (Chegg, 2019)
- 1 in 3 real estate agents, insurance agents, and systems administrators have interned. (Chegg, 2019)
- As of 2019, the offer rate for interns is 70.4% while the acceptance rate is 79.6% while the conversion rate is 56.1%. (National Association of Colleges and Employers, 2019)
- The offer rate for co-ops is 50.2% while the acceptance rate is 79.3%. The conversion rate, on the other hand, is 39.9%. (National Association of Colleges and Employers, 2019)
- 71.4% – the annual retention rate for working interns who have had experience in internal internship. (National Association of Colleges and Employers, 2019)
- 59% – the one-year retention rate for working interns who have had experience in external internships. (National Association of Colleges and Employers, 2019)
How do internships impact skill development and career readiness?
Internships offer valuable real-world experiences that significantly enhance a student’s skill set and readiness for the job market. Here’s how internships play a crucial role in developing essential skills:
- Professional Skills: Internships allow students to practice job-specific skills such as project management, teamwork, and communication. Exposure to these skills early on helps them transition smoothly into full-time roles.
- Soft Skills Development: Internships encourage the development of critical soft skills, including time management, adaptability, and problem-solving. These skills are often highly sought after by employers and help interns perform effectively in dynamic work environments.
- Industry Knowledge: Interns gain insights into industry-specific tools, best practices, and workflows, making them better prepared for future job roles. This experience also helps interns identify their preferred career paths and interests.
- Networking Opportunities: Internships enable students to establish valuable professional connections, which can be instrumental in securing future job opportunities or mentorship.
These skills and experiences equip interns with a competitive edge, ensuring they are better prepared to contribute meaningfully to their future workplaces.
Internship Challenges
Internships have not lost their luster to date, as many businesses continue to offer them to students who are set to get off the meat grinder. This is because both companies and students benefit from internships. The statistics mentioned here are proof of this. However, there remain problems that continue to hound internships. The most prominent of which is some businesses’ unwillingness to pay interns.
Even as unpaid internships have been deemed illegal in the US, many companies continue to engage in the practice. Such results not only in lack of financial gains for students but also the reduced chance of employment after graduation. But on the brighter side, there are many organizations that offer not only paid internships but employment opportunities as well.
Another problem besetting internships in the country is the disruption caused by the COVID-19 pandemic. For fear of allowing the disease to spread, many businesses have either canceled or shortened the duration of their internship programs. But the use of new technology has resulted in internship programs making their way back on track through virtual internships. These developments only reflect the importance of internships to hiring talents and that they should always be there, pandemic or no pandemic.
Key Insights
- Impact of Internships on Employment: Internships significantly enhance students’ chances of securing full-time positions and often result in better pay.
- COVID-19 Pandemic Effects: The pandemic led to a substantial reduction in internship opportunities, with 64% of businesses canceling their programs in 2020.
- Shift to Virtual Internships: Many companies transitioned to virtual internships, utilizing technologies like video conferencing to maintain their programs.
- Importance of Paid Internships: Paid internships are more likely to lead to job offers post-graduation compared to unpaid internships.
- High Retention Rates: Interns who convert to full-time employees often show higher retention rates, making internships a valuable tool for talent acquisition.
- Sector-Specific Internship Practices: Different industries have varying practices regarding internships, with tech and finance sectors offering higher pay and more structured programs.
FAQ
- Why are internships important for students? Internships provide students with practical experience, enhancing their skills and making them more competitive in the job market. They also increase the likelihood of securing full-time positions post-graduation.
- How has COVID-19 affected internship programs? The COVID-19 pandemic led to significant disruptions in internship programs, with many companies canceling or reducing the duration of their programs. However, some businesses adapted by shifting to virtual internships.
- What are the benefits of virtual internships? Virtual internships allow students to gain work experience remotely, maintaining safety during the pandemic. They also provide flexibility and can help students develop skills in digital communication and remote collaboration.
- Are paid internships more beneficial than unpaid ones? Yes, paid internships often lead to higher job offer rates and better starting salaries. They also provide financial support to students, making the internship experience more accessible and equitable.
- Which industries offer the highest-paying internships? Tech companies like Google, Facebook, and Microsoft, as well as finance and consulting firms like Goldman Sachs and Deloitte, offer some of the highest-paying internships.
- What is the retention rate for interns who convert to full-time employees? The one-year retention rate for interns who have had internal internship experience is 71.4%, while the five-year retention rate is 43.9%.
- How do companies benefit from offering internships? Internships provide companies with a pipeline of skilled talent, reduce recruitment costs, and improve employee retention rates. They also allow businesses to evaluate potential employees’ performance before making full-time offers.
- What challenges do internships face today? Key challenges include the prevalence of unpaid internships, which can limit access for students from lower-income backgrounds, and the disruptions caused by the COVID-19 pandemic, which have led to cancellations and shifts to virtual formats.
- How do students typically find and secure internships? Students find internships through various channels, including university career centers, online job portals, company websites, and networking events. Early application and leveraging connections can improve their chances of securing internships.
- What are the trends in internship programs post-COVID-19? Post-COVID-19, there is an increasing trend towards hybrid and virtual internship models, greater emphasis on digital skills, and a continued focus on providing structured, meaningful experiences for interns.
References:
- Burning Glass. (2018). Underemployment’s Long-Term Effects on the Careers of College Grads. Retrieved from Burning Glass
- Business Insider. (2019). Highest Paying Internships 2019. Retrieved from Business Insider
- Chegg. (2019). IT TAKES TWO (OR MORE). Retrieved from Chegg
- Chegg. (2019). TO INTERN OR NOT TO INTERN: WHICH COMPANIES REQUIRE AN INTERNSHIP? Retrieved from Chegg
- CNBC. (2019). Some college internships pay twice what regular workers earn. Retrieved from CNBC
- CNBC. (2020). From Facebook to the State Department, how coronavirus has changed summer internships. Retrieved from CNBC
- College Recruiter. (2019). How Internships Impact Employability and Salary. Retrieved from College Recruiter
- Fast Company. (2019). This is how the intern economy is shaping the future of work. Retrieved from Fast Company
- HR Dive. (2020). Coronavirus brings cloud of uncertainty over summer internships. Retrieved from HR Dive
- National Association of Colleges and Employers. (2019). CONVERTING INTERNS, CO-OPS INTO FULL-TIME HIRES ON THE RISE. Retrieved from National Association of Colleges and Employers
- National Association of Colleges and Employers. (2019). INTERNSHIP & CO-OP REPORT 2019. Retrieved from National Association of Colleges and Employers
- National Association of Colleges and Employers. (2019). INTERNSHIP SURVEY & COMPENSATION GUIDE COMBO 2019. Retrieved from National Association of Colleges and Employers
- National Association of Colleges and Employers. (2020). QUICK POLL: EMPLOYERS MAINTAINING PLANS FOR COLLEGE HIRING, HOLDING INTERNSHIPS. Retrieved from National Association of Colleges and Employers
- PwC. (2019). Advance. Retrieved from PwC
- Remote Internship. (2020). REMOTE INTERNSHIP STATISTICS: A COVID-19 IMPACT REPORT. Retrieved from Remote Internship
- Remote Internships. (2020). REMOTE INTERNSHIP STATISTICS: A COVID-19 IMPACT REPORT. Retrieved from Remote Internships
- The American Prospect. (2019). How Unpaid Internships Reinforce the Racial Wealth Gap. Retrieved from The American Prospect
- Thrive Global. (2019). Why Every Business Should Pay Their Interns. Retrieved from Thrive Global
- Vox. (2019). Facebook pays its interns nearly double what the typical American makes. Retrieved from Vox
- Yello. (2020). Virtual Internship Statistics and Trends: A 2020 COVID-19 Impact Report. Retrieved from Yello
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