One in five graduates work without pay, new report reveals

The Sutton Trust’s latest research, conducted by Erica Holt-White and Carl Cullinane, has revealed that 35% of graduates have completed an unpaid or underpaid internship, with one in five receiving no financial compensation.

Despite being a crucial gateway to professional careers, internships remain inaccessible to many due to financial barriers, disproportionately impacting those from lower socio-economic backgrounds.

The research indicated a troubling reliance on financial support from families, with 40% of unpaid interns relying on the “Bank of Mum and Dad,” up from 26% in 2018.

This dependency highlighted how internships are increasingly unaffordable for individuals without family resources, perpetuating inequalities in workplace access.

Graduates from working-class backgrounds are 20% points less likely to undertake internships compared to their middle-class peers, a gap that has widened significantly since 2018.

The Sutton Trust’s findings underscored the role of social capital in accessing opportunities, as only 11% of internships are openly advertised, with many positions secured through informal networks.

While there has been some progress, with 37% of internships now paying at least the National Minimum Wage (up from 27% in 2018), there has also been a rise in underpaid positions, which now account for 23% of internships.

This trend raised legal and ethical concerns, as many of these positions likely violate existing minimum wage legislation.