What are the disadvantages of unpaid internships?

What are the disadvantages of unpaid internships?

March 18, 2019 Off By danny watson

The disadvantages of an unpaid internship are listed below according to PGP Australia.


  1. The student won’t be given any money when they are doing their internship, and therefore this is a viable option only for those students who have a good financial backing and can manage work without having to depend on any source of income.
  2. Students who come from economically backward conditions may find it difficult to continue on with an unpaid internship as they already would be taking loans to finance their studies. They would, therefore, need a paying job to manage their expenses.
  3. An unpaid internship is not legal in some industries and companies.
  4. There are organizations and companies which tend to exploit or manipulate the student, and therefore there are certain rules and regulations put in place to safeguard the student.
  5. Companies may hire interns as a means of getting their work done without hiring an actual employee as this a considerable saving for them
  6. Companies may prefer to recruit people for jobs who have previously taken up paid internships as this student are considered more committed to the task than those who have taken up an unpaid internship
  7. When a student is an unpaid intern, it means that they are not technically employed by the company and therefore the rights with regard to working conditions, harassment and discrimination may not be given due importance at the place of work
  8. As per statistics, it is found that those who have taken up unpaid internship rank on the same lines as those who have had no prior experience. Therefore an unpaid internship does not yield much benefit when it comes to the ability to land a job.
  9. As per statistics, lower income packages are earned by those that have taken up unpaid internships than those who had taken up paid internships.
  10. When companies take on unpaid interns, they are able to get their work done for free, and that hurts the employment trend. This also affects the students who want to get a job. Therefore unpaid internships actually weaken the economy of the country
  11. Students who have taken up student loans and are unable to pay back their loans as a result of an unpaid internship and this increases the stress. It affects their studies as well.
  12. Paid internships attract a lot of students are there for companies are unable to secure the best talent for the organization when they only have unpaid interns. Therefore, they lose out in the long run because most of the interns get converted into employees later on.
  13. Unpaid interns usually are given jobs which may or may not be directly related to the line of business or their future career or work. They usually are given tasks which are non-critical and mundane. As a result, the student does not get to learn a lot at the place of work.

These are just some disadvantages of unpaid internships among a host of others.