The value of internships for students’ career navigation and future employment opportunities is clear for colleges and many employers. But what do students think of internship experiences, and how do they benefit them in their future planning?
A new report from Handshake, published Feb. 20, highlights trends across students who have and have not participated in internships, the impact on their goals beyond college, and the barriers that hinder engagement.
Among the trends present: More interns are participating in paid internships and earning above minimum wage while doing so, and company culture can influence students’ willingness to return for a full-time position.
Methodology
Handshake’s Internship Index was assembled with data from a November 2024 survey of more than 5,605 students and 834 recent graduates, as well as job posting and application data from the platform. Recent graduates are those who completed their degree in 2022, 2023 or 2024.
Why intern? A majority of students said they pursue internships to build valuable skills (87 percent), to identify possible career opportunities (72 percent), to make professional connections (70 percent) or to get a leg up in their future job hunt (70 percent). About 59 percent say participating in an internship is an essential step toward clarifying their career goals.
Only one-third of students identified fulfilling a degree requirement as a primary factor for pursuing an internship, and just over half indicated financial motivation for interning.
Among students who have completed an internship, more than 80 percent say the experience shaped their preferences for industries and job roles. Around 54 percent of students said their internship made them more confident in their career goals, and 56 percent said it was essential for making progress toward career goals. One-quarter said it inspired them to set new career goals, which can be similarly valuable.
A winter 2023 Student Voice survey by Inside Higher Ed and College Pulse found 10 percent of students identified an internship as a top influence on their career decisions for after college.
What hinders internships: Around 12 percent of students in the Handshake study have not participated in an internship and do not expect to do so prior to finishing their degree. The greatest share of these students say they’re limited by time (33 percent)—overwhelmed by coursework and other commitments—or they’ve applied for roles and haven’t been selected (33 percent).
“Students may feel shut out of internships for a variety of reasons, ranging from packed schedules to financial and geographic constraints,” the report says. “Even for students who have ample time and resources, landing an opportunity has become more difficult as hiring contracts and competition increases, and the application process may feel overwhelming given the variation in hiring timelines across employers and industries.”
Internal data shows demand for opportunities among students that is outpacing the supply. The number of internship postings on Handshake declined 15 percent from January 2023 to January 2025, but applications surged, with 41 percent of the Class of 2025 having applied to at least one internship through Handshake, compared to 34 percent of the Class of 2023.
Only half of recent college graduates participated in an internship while enrolled in an undergraduate program. Even among students who do land an internship, time continues to be limited, with 56 percent of interns simultaneously taking classes and 36 percent working a part-time job. Around one in eight students said that their internship required them to work 40 hours a week or more.
First-generation students were more likely to say they completed an internship while taking classes or working (80 percent) compared to their continuing-generation peers (70 percent).
Pay day: As colleges and employers consider the importance of experiential learning for student career outcomes, more attention has been placed on the value of fair compensation to reduce equity gaps in who is able to participate in internships. Some colleges will provide stipends or scholarships for learners who take on an unpaid or underpaid internship, allowing them to still receive financial support for their work.
Almost all internships (95 percent) posted on Handshake in the past year were paid, which students say is important to them in selecting an internship role.
A majority of students who participated in an internship had an hourly wage (57 percent) or a fixed salary or stipend (24 percent). The highest average rate was for student interns working in professional services ($35 an hour) or financial services ($31 per hour). Students working in hospitality or education received the lowest average rate of $17.50 an hour.
A talent pipeline: Internships can be a great way for a student to get a foot in the door of a company and for the employer to offer training and a career pathway for early talent. Handshake’s data shows that the interpersonal experiences students have while in their internships can influence their desire to hold a full-time role in that company.
Three in five interns said the mentorship they received or didn’t receive had a major impact on their level of interest in working full-time for their internship employer. About 89 percent of students said team culture at least somewhat impacted on their interest in working full-time for their internship employer, and 90 percent said the same of their interactions with colleagues.
Similarly, pay was a factor that impacted students’ consideration of a full-time role at their employer. Eighty-two percent of interns who had a fairly compensated role would likely accept a full-time offer from their internship employer, compared to 63 percent of those who didn’t feel their pay was fair.
After finishing their internship, 59 percent of students said their experience impacted their interest in working for their employer at least moderately, but only 30 percent said they would definitely accept a full-time offer from their employer.
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