Employers offering unpaid or low-paid internships are excluding working-class and disadvantaged young people from key career paths, a new report from the Sutton Trust has revealed. The social mobility charity’s research highlights the growing disparity between middle-class graduates and those from working-class backgrounds in securing internships, which are often critical for landing jobs in industries like finance, IT, and law.
The Sutton Trust’s findings show that internships, once considered a stepping stone for career success, are increasingly out of reach for those without parental or personal financial support. The charity found that 55 percent of middle-class graduates had undertaken internships, compared with only 36 percent from working-class families. This 19-percentage point gap has widened significantly from a 12-point difference in 2018.
“It’s shocking that many employers still offer internships that pay below the minimum wage, or worse, nothing at all,” said Nick Harrison, chief executive of the Sutton Trust. “Not all young people have access to financial backing from the ‘bank of Mum and Dad.’ Banning unpaid internships will help level the playing field for disadvantaged youth.”
The survey of 1,200 recent graduates revealed that 61 percent of internships remain unpaid or underpaid, with many interns relying on family, friends, or personal savings to support themselves. The research also found that real-estate firms were the most likely to offer unpaid positions, followed by industries like construction, IT, finance, and law. Retail, on the other hand, was one of the most consistent sectors in meeting minimum wage requirements, ahead of media, marketing, and advertising.
The Sutton Trust is calling for a ban on unpaid internships lasting more than four weeks and stronger enforcement of minimum wage laws. The charity also advocates for greater transparency, urging companies to publicly advertise internship opportunities to ensure they are accessible to a broader pool of candidates, not just those with existing professional connections.
In a separate YouGov survey commissioned by the charity, 38 percent of employers expressed support for a complete ban on unpaid internships, while 30 percent advocated for stricter enforcement of wage laws. The survey also found that graduates with professional contacts were nearly twice as likely to have secured an internship, with 71 percent of privately educated graduates having completed an internship, compared to just 40 percent of their state-educated peers.
As the gap in internship access continues to grow, the Sutton Trust is calling on both employers and policymakers to take action to ensure that career opportunities are available to all, regardless of background.
