Why Internships Matter More Than Degrees in the U.S. Job Market - Fort Worth - 1

Recently, I was surprised while talking to a friend who works in recruitment. They were deciding between two resumes: one had a degree from a well-known university, and the other had two internship experiences. They told me they chose the latter first.

In the past, they would have likely dismissed the resume based on the school name alone, but the atmosphere in the U.S. job market has definitely changed.

The National Association of Colleges and Employers (NACE) releases an annual Job Outlook report, and the numbers reflect this change. When hiring managers had to make a final decision between two candidates with similar skills, the most significant factor they considered was internship experience.

In contrast, only 38.3 percent of companies said they would use GPA as a hiring criterion. This is a decrease of 35 percent compared to five years ago.

This suggests that employers are much more interested in what candidates have actually done rather than just their grades.

In the same survey, when asked about desired resume attributes, nearly 90 percent said they look for problem-solving skills, and about 80 percent look for teamwork abilities.

Both of these skills are much better demonstrated through internships or project experiences than through class schedules.

When I asked executives who reported reducing entry-level hiring due to AI, their responses were even clearer. Among them, 86 percent said that internship or practical experience is very important or essential.

This indicates that having internship experience has become almost a baseline requirement rather than just an option.

Looking at actual employment outcomes, the difference is stark. Graduates with internship or co-op experience had an 81.6 percent employment rate within three months of graduation, while those without relevant experience were only at 40.7 percent.

This nearly doubles the gap, and I was a bit shocked when I first saw these numbers.

Even within internships, whether they are paid or unpaid makes a difference in outcomes. According to NACE research, paid interns received an average of 1.61 job offers before graduation, while unpaid interns received only 0.94.

The median starting salary for paid interns was $67,500, while unpaid interns averaged $45,000.

It's a bit disheartening to see such a divide based on whether an internship is paid or unpaid.

However, internships are not just a line on a resume. According to NACE's 2023 survey, 57.6 percent of interns transitioned to full-time positions.

From the company's perspective, hiring someone who has already been vetted reduces hiring risks.

When considering why this trend has emerged, the reasons are surprisingly simple. A diploma shows what someone has learned, but it doesn't demonstrate how they perform in real work situations.

Moreover, the number of entry-level positions has decreased compared to the past, leading companies to scrutinize each applicant more closely, prioritizing those with verifiable practical experience.

I don't necessarily see this trend as negative. It feels fairer to evaluate what someone can actually do rather than ranking them based on their school name.

However, the limited availability of paid internships and the widening gap within them is a challenge that needs to be addressed. Students from lesser-known schools often find it harder to secure paid internship opportunities.

Therefore, I would recommend that students frequently visit their school's career center. Assisting professors in research or participating in school-related programs can also provide practical experience that enhances their resumes.

If you are currently a college student or contemplating your career path, submitting another internship application is far more beneficial than fixating on school rankings. If I were in your position, I would definitely do that.