She Strengthens

The Hidden Costs of Unpaid Internships

As I reflected on my decision to only take paid work, I couldn’t help but think about the opportunities I passed up. I turned down multiple unpaid internships at prestigious organizations, knowing that they would require me to sacrifice three months’ to two years’ worth of pay. It was a tough choice, but I chose financial stability over the chance to build my professional network.

The Unfair Advantage of Unpaid Internships

Unpaid internships often reward those who are privileged enough to afford to donate their time without any guarantee of acquiring hard skills or employment leads. At best, they’re a risky investment. Interns work long hours, with many programs demanding a minimum commitment of 12 weeks. After that, there’s no guarantee they’ll gain any valuable experience or increase their chances of finding paid work.

The Real Expenses Behind Unpaid Internships

To make an informed decision about taking on an unpaid internship, it’s essential to calculate the real expenses involved. Here are some of the costs to consider:

Tuition

The average cost of tuition in the US is staggering. Public universities for state residents cost around $18,943 per year, while private universities cost a whopping $42,419 per year.

Rent and Utilities

Basic utilities for a small apartment in the US average $145 monthly, and internet costs around $54 monthly. Rent varies greatly depending on location, with cities like San Francisco and New York being particularly expensive.

Transportation

Average transportation costs in the US come in at $75 for a monthly pass on public transportation, and $2.25 for a one-way ticket. This cost goes up significantly in major cities like New York and San Francisco.

Food

Basic nutrition can be an afterthought when juggling an internship with full-time duties and schoolwork. The average American family expects to pay $868 per month to feed a family of four, which translates to around $217 per month for a single person.

Medical Insurance

In 2010, the average private sector employee contributed over $1,000 annually to their single Health Insurance premium. Students often rely on their parents’ insurance plans until they turn 26, but those who opt for their university’s health insurance plan can expect to pay at least $2,000 in annual premiums.

The Total Cost of an Unpaid Internship

Let’s take the example of a hopeful young diplomat studying for a B.A. in International Relations at a private university in New York City and interning 40 hours a week for an unpaid gig at the United Nations. The total costs per year would be:

• Tuition: $46,000
• Rent: ~$12,000 annual
• Transportation: $1,392
• Food: $2,604
• Medical Insurance: $2,000
• Other expenses: $402.05 (coffee, winter coat, etc.)

GRAND TOTAL: $52,498.05

And that’s not counting the cost of 40 hours of free labor, which could be worth around $24,000 after taxes.

The Ethical Problem with Unpaid Work

Unpaid internships face increasing legal scrutiny in the US, particularly in New York and California. This system often comes at the expense of the worker, consuming time, skills, and credit scores. It’s a system that puts the financially privileged at a considerable advantage, making it difficult for those from diverse backgrounds to break into certain industries.

Hard Work Deserves Fair Pay

Before taking on an unpaid internship, it’s essential to calculate the risk and consider the ethical implications. There are internships that are worth taking out an extra loan for, but it’s crucial to remember that hard work deserves fair pay. It’s time for industries to reevaluate their approach to unpaid internships and prioritize fair compensation for all workers.