Read The Times Australia

Daily Bulletin

The growing cost of internships could add to inequality

  • Written by: Paula McDonald, Professor of Work and Organisation, ARC Future Fellow, Queensland University of Technology

In today’s hyper competitive job market, internships are becoming a must-have on almost every job applicant’s CV. But when should a worker be paid for an internship, and is the rise of unpaid internships simply broadening the gap between those who can afford to work for free and those who can’t? We explore these and other issues in this Internships Investigated series.

Internships and unpaid work can sometimes lead to ongoing employment, but our research shows there are various costs that may exclude people who are economically disadvantaged.

Substantial out-of-pocket expenses can be associated with an internship and few interns receive reimbursements for the costs incurred. For example, if the workplace is not close to where the intern lives, significant travel or accommodation costs, not to mention substantial travel time, may be required to undertake the placement. And sometimes there are costs associated with specialist clothes, personal protective equipment or materials that interns have to pay for.

Our research found that students who participate in unpaid work, organised privately outside of course requirements, are often required to cover the cost of liability insurance during their internship.

High profile employers, such as the United Nations, expect interns to be responsible for funding their own travel, insurance, accommodation and living expenses in some of the world’s most expensive cities.

There is a high level of willingness from young people to participate in internships. The challenge is ensuring those who struggle to afford out-of-pocket expenses are not excluded.

Upfront fees

Some interns also pay for a third-party agency, often referred to as an “internship broker”, to secure an unpaid work position. Our ongoing research suggests the number of these agencies appears to be increasing, especially in the graduate student market. International students seem to be particularly vulnerable.

One recent example of this practice was an organisation called the Top Education Institute. Located within a university in Sydney, the agency was seeking to charge international students A$2,800 for the opportunity of an internship at consulting firm PriceWaterhouseCoopers. PwC later clarified that the opportunity was for a course, not an actual internship at PwC.

Another example is Professional Pathways Australia. This Monash University company charges international students studying in fields such as accountancy, law and public relations, A$1,500 to A$1,800 to secure a 12 week unpaid work placement. It’s an additional A$150 for insurance. A non-refundable A$500 is charged simply to submit an application.

Opportunity costs

Students may also face other indirect costs if they need to forgo paid work while undertaking an internship. Some young people who rely on their part-time jobs to cover basic living expenses may be prevented from participating in unpaid work or face hardship in doing so.

Combining part-time work with a full-time placement may also compromise their ability to perform well in their studies. In the longer term, students who are reliant on a part-time income and who undertake less unpaid work as a result, may become less competitive in the job market than their more financially advantaged peers.

The opportunity costs of unpaid work experience is already very familiar to students studying teaching and nursing at university or aged care and early childhood education VET courses. To gain their qualifications, these students need to complete a substantial number of hours undertaking unpaid work placements.

For example, aged care, disability and home care students who are enrolled in a Certificate III in Individual Support, must intern for 120 hours, or more than three weeks full-time. For many teaching and nursing graduates, the requirement is more than 30 weeks over the full degree.

There have been calls to pay student teachers and student nurses the minimum wage while they are on placement. Some countries overseas have already partly adopted this practice. For example, Ireland pays student nurses slightly less than the minimum wage.

A 2012 UK Government report on internships put this issue of pay firmly on the political agenda at the last UK general election. The UK Labour Party adopted a policy of banning unpaid internships lasting longer than four weeks.

There is still a lot that we do not know about the costs and benefits of internships. To devise appropriate policy responses, we need to know how widespread the use of intern brokers is, what kinds of travel, insurance and other upfront costs interns commonly incur, and to what extent the reliance on paid work acts as a barrier to participation for the economically disadvantaged.

Read more stories from Internships Investigated here.

Authors: Paula McDonald, Professor of Work and Organisation, ARC Future Fellow, Queensland University of Technology

Read more http://theconversation.com/the-growing-cost-of-internships-could-add-to-inequality-60371

Business News

How Telematics Helps Australian Companies Improve Productivity

Operating a commercial fleet in Australia is a uniquely demanding endeavour. Between the sprawling urban sprawl of cities like Sydney and Melbourne and the immense, unforgiving stretches of the Outb...

Daily Bulletin - avatar Daily Bulletin

Inside the Icon: The BridgeMuseum Officially Opens at the Sydney Harbour Bridge

A bold new way to experience one of Australia’s most recognisable landmarks has arrived, with BridgeClimb Sydney officially opening the all-new BridgeMuseum.  Located inside the Sydney Harbour Bridge...

Daily Bulletin - avatar Daily Bulletin

Is Your Brand Showing Up in AI Search? Most Melbourne Brands Aren't.

The New Front Door Nobody Told You About Something changed. Quietly. Without a press release. The way buyers find businesses in Australia has been rewired. Not replaced, rewired. Google isn't dead...

Daily Bulletin - avatar Daily Bulletin

How Australian Businesses Can Measure SEO ROI

SEO can feel vague when you are staring at a dashboard full of numbers that do not clearly connect to revenue. The key is to measure the right signals in the right order, then tie them back to outcome...

Daily Bulletin - avatar Daily Bulletin

How Commercial Roller Shutters Improve Site Security Without Slowing Operations

Security upgrades can be frustrating when they make everyday work harder. A door that takes too long to open, creates bottlenecks at shift change, or fails at the worst time can turn “better protectio...

Daily Bulletin - avatar Daily Bulletin

Why a Document Destruction Service Still Matters for Modern Businesses

Businesses generate large volumes of information every day, from staff records and contracts to invoices, reports and customer files. While attention often focuses on how documents are stored, the way...

Daily Bulletin - avatar Daily Bulletin

Bicycle Rack Safety and Space-Smart Storage

Bike storage problems usually show up as small annoyances first: tangled handlebars, scratched frames, and bikes that topple when you pull one out. Over time, those issues become safety risks, especia...

Daily Bulletin - avatar Daily Bulletin

How to Tell if a Childcare Centre Is a Good Fit for Your Child

Choosing childcare can feel like you’re making a huge decision with limited information. Tours are short, centres are often on their best behaviour, and your child might act differently in a new space...

Daily Bulletin - avatar Daily Bulletin

Car Import Timeline: What Usually Happens at Each Stage

Importing a car into Australia can feel confusing because multiple agencies and checkpoints are involved, and the timeline is shaped as much by paperwork quality as it is by shipping speed. The most u...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...

The pressure cooker: life in urban Australia in 2026

Australian cities have always been demanding. Long commutes, rising housing costs, busy schedules a...

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...