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Internship Market Tightens, Increasing Competition Among College Students
The landscape for securing internships is becoming increasingly competitive, with companies scaling back their programs this summer. Data from the job search platform Handshake revealed a more than 7% drop in internships listed from June through May compared to the previous year. Concurrently, the average number of applications per internship surged to 93 from 53.
Tougher Road for Internships
This heightened competition underscores companies' cautious approach towards hiring entry-level positions. Industries like finance, consulting, and tech, which recently faced significant layoffs, are particularly affected. For instance, Tesla rescinded summer internship offers as part of broader cost-cutting measures, leaving many students scrambling just before their programs were to begin. According to Julia Pollak, chief economist at ZipRecruiter, internships are a significant investment that many firms are unwilling to make right now, given the focus on efficiency.
Alternative Strategies and Programs
Some companies, instead of traditional internships, are offering less resource-intensive workshops to remain engaged on college campuses. Sean McGowan, director of employer relations at Carnegie Mellon University, noted that firms such as Morgan Stanley and Goldman Sachs provide educational programs to keep students engaged. Even so, landing prime internship spots is increasingly challenging. Goldman Sachs, for example, received over 315,000 applications for just 2,700 internships, marking an acceptance rate of less than 1%.
Implications for Students
The stakes for securing internships are substantial. Research shows that students who miss out on internships are at higher risk of long-term underemployment. Isabel Cramer, a student at the University of Toronto, exemplifies this struggle, having applied to over 40 internships without securing a position. As an alternative, she decided to enhance her video editing skills and social media presence, hoping it would better prepare her for the job market.
Networking and Persistence
The heightened competition necessitates aggressive networking. Ryan Levine, a senior at Colby College, applied to nearly 60 internships and networked extensively on LinkedIn but faced numerous rejections before landing a role at New York Life Insurance Company through a high-ranking contact. This narrative reflects a broader trend where students continue to interview even after accepting offers due to companies reneging on commitments.
Challenges in the Broader Job Market
These challenges extend beyond internships to entry-level jobs. Tech giants like Alphabet and Meta have rescinded offers, and consulting firms like Accenture and Deloitte have delayed start dates, exacerbating students' anxiety and uncertainty regarding their future employment. According to McGowan, this has led to a breakdown in trust, prompting students to persistently seek additional opportunities even after landing a job.
The entire job-seeking process has evolved into a high-stakes environment, compelling students to adopt multiple strategies to secure their foothold in a tightening market.
