Laurie Penny

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Internship auctions and a lost generation

To criticism that a lot of people could be priced out, the response is, “That’s life.”

On the bus this morning, a young father was distributing pocket money to his three small children. The eldest was kicking the back of my chair in bone-jarringly rhythmic anticipation of being taken to town for a day's shopping, but when he received his small handout, the kicking stopped.

"I'm not going to spend my £3, Dad," announced the boy, "I'm going to save it, and then I’m going to save all my pocket money, and then I can go to university and get a good job." This may, of course, have been the sort of cunning ploy to wheedle extra cash out of a parent that anyone who was ever a smart-arse seven-year-old will recognise.

It speaks volumes about the state of social equality, though, that while this primary school pupil from inner London was contemplating forfeiting an entire childhood's worth of treats to afford a chance at higher education and fulfilling work, wealthy Oxford graduates were taking up prestigious internships that they had purchased at a lavish charity auction held at the university last month.

Students who attended the opulent Oxford Red Dress Couture Ball, tickets for which were priced at up to £300 (though most cost £40), were able to bid thousands of pounds for coveted professional placements with law firms and fashion designers.

A mini-pupillage with the barrister Neil Kitchener QC was under the hammer, as were designer gowns, hotel breaks and other goodies available only to the extremely well-off. Sam Frieman, co-organiser of the auction, told the Cherwell that "you can only come to the auction if you have paid for a ticket. In response to the criticism that a lot of people could be priced out, I would say, 'That's life.' "

Internships like these are now prerequisites for many jobs, and most interns work extremely hard to obtain and finance work placements. "As someone from a low-income, East Midlands background, this auction is another reminder that I'm at a disadvantage because I can't afford an internship,” said a recent Oxford graduate, Kate Gresswell, 21.

Relative inequality within the Oxbridge system is hardly the pressing issue of our times, but if even the cleverest Oxford graduates are finding that money matters more than merit something has gone terribly, terribly wrong with our employment equations.

The internship system is already expensive enough to exclude all but the richest and most fortunate young people from popular jobs.

I could pretend, for example, that it's my winning smile and genius that have enabled me to find work as a journalist -- but a year's unpaid interning, during which I survived on a small inheritance from a dead relative, had just as much to do with it.

Today, any graduate or school-leaver without the means to support themselves in London while working for free can forget about a career in journalism, politics, the arts, finance, the legal profession or any of a number of other sectors whose business models are now based around a lower tier of unpaid labour.

After the relative levelling of university, class reasserts itself with whiplash force as graduates from low-income backgrounds find the doors of opportunity slammed in their face.

Last week, the Chartered Institute of Personnel and Development called for employers to be obliged legally to pay interns a minimum wage of £2.50 an hour, but such a step is unlikely to be taken by the coalition, which has already made it breathtakingly clear that preventing young people from falling through the cracks in our society is not likely to be a priority any time soon.

With 70 applicants for every new vacancy, with almost a million young people unemployed and with millions more languishing in insecure, temporary and poorly paid work, the job market is now open only to those who can afford to buy their way in.

The Telegraph reports that across the country hundreds of placements are being sold or brokered, often at similar auctions for the wealthy, where the fact that proceeds go to charity gives the new nobility yet another reason to be smug about giving themselves the life chances that previous generations enjoyed for free.

For the few of us who are wealthy enough to finance ourselves through work placements, only a firm push is needed to force open the doors of opportunity. Without a co-ordinated effort to reverse this regressive trend, the years to come will be littered with wasted potential and filled with disappointment for young people with nothing to bring to the table but talent, creativity and ambition.

(*Disclosure: the New Statesman employs unpaid interns.)

37 comments

triedeinsursE's picture

". Three-month unpaid internships only, came the reply. Mummy and Daddy didn't have the money so that was that."

Did you consider getting off your backside and earning it yourself?

Jim's picture

Agreed. Is someone from the magazine going to leave a comment or not?

triedeinsursE's picture

You people think your country owes you. You live in a capitalist country so why not get used to the idea. Big business is not your government handing out freebies left and right. If business wish to auction off their internships and raise some money for charity, that’s not your concern or right to moan about. Get your butts in gear and make sure your kids get the best education they can. We can’t all be born into privilege.

fiuxlbpttz's picture

Jim - I am on the New Statesman staff (and was formerly an unpaid intern here, too).

We currently cover travel costs (as stated on this page http://www.newstatesman.com/page/jobs)

fiuxlbpttz's picture

Also - I agree with most of the points in this article, but think it's important to draw a distinction between people paying for internships in the manner described (which is disgusting) and the standard unpaid internship which is applied for with a CV.

The latter is still unfair - as Laurie points out, many can't afford to work for free (I've also written on this topic in the past), but it's not the same as bidding for an internship at an auction.

Steven Boyd's picture

@ Buckskins: But that's the point, even people who are getting the best education they can can't compete with the people who get the best education available AND have plenty of mummy and daddy's money behind them. It's not about thinking the country owes you, it's about realising that the meritocratic society you've been brought up believing in doesn't really exist at all.

Nile's picture

It's not about merit: these 'magic circle' companies know exactly what they are doing when they use the financial barrier of an unpaid internship to screen out recruits to the best positions on their graduate development programme. These companies want 'people like us'; not necessarily nieces and nephews of the directors and the major clients, but people one or two degrees of separation away within the same social and economic stratum.

In other words, it's about maintaining the priveleges of an economic aristocracy; a deliberate rejection of merit in a scheme to screen out all who do not measure up to being 'the right sort of people'.

Mr. Divine's picture

Paying to get your foot in the door! Well if people are prepared to go down that route let them. Some of us have found better ways to collecting lots of dosh.

triedeinsursE's picture

Go git em Badger.

Laurie Penny1's picture

Well, precisely. I admire NS's decision to add the disclosure to this piece (I only felt obliged to come clean about my own work) but I think we should focus on the trend as a whole rather than New Statesman in particular.

Findiglay's picture

There is a way, but it takes time and you're best going to Asia...

My plan is to head off to Mongolia to teach English for a year or two. If you can get yourself a good contract/employer, earning $10-$12/hour, that is good money relative to local standards of living. You don't have to live sparingly just to put some money by each month. The English-teaching-boom isn't quite what it was a couple years back but there is still plenty of work. A TEFL etc isn't necessary.

Its not ideal, but you'll have fun and should have enough money at the end of it to afford an internship.

P.S Miss Penny! How do I apply for an internship at New Statesman? Might there be any need in the near future for an unpaid NE Asian correspondant? :)

Findiglay's picture

...Nevermind, I found the link. But perhaps my offer is something to consider ;)

BadConscience's picture

Jim,

"Last time I heard, notions of company honour and social justice weren't mutually exclusive."

Well I never said they were. I was simply implying that social justice is a rather more important factor at work than "company honour". I also would have thought that was astonishingly obvious, and am surprised that anybody could think that falling back on a tangental point about "mutual exclusivity" could possibly be interesting or to the point.

Ben's picture

"And then of course there is the fact that it is illegal to require someone to turn up and perform specific tasks without actually paying them - look again at the minimum wage legislation."

This is quite true. So the CIPD's recommendation is absurd. And of course, shame on the New Statesman - which isn't to single them out at all, they only get away with it because of the sheer number of companies all flouting the law, and the lack of budget for enforcement.

.james's picture

It's fascinating that these comments focus largely on the NS' use of unpaid internships -- which is, yes, reprehensible, though the disclosure is at least vaguely commendable -- where the larger issue here is that hugely beneficial internships are being auctioned off to the highest bidder.

The point is two-fold: firstly that not all internships are made equal, and that the most prestigious can be attained through a combination of nepotism, social position and private purchase should scandalise us. But the second is that the auction at the Red Dress Ball only serves to make explicit the particular economy *already* in operation with internships, especially in media; if anything they've only been so gauche as to put an explicit price on it.

Melinda's picture

The phrase "Lost Generation" used to have a rather more terminal meaning than this.

triedeinsursE's picture

Steven, your meritocratic society is just like mine. Money talks, and BS walks. Big Business is not your government...*cough* ..kinda not.
Business has no obligation to give free training according to your Uni grades. It's their training to give to whom they wish.

jie4v7i14's picture

In the Engineering professions, internship type low pay/next to no pay disappeared years ago for graduates, because there are such a shortage of them. But I did come across graduate engineers that simply did not have a clue - couldn't wire a 13 amp plug even, some of them.

LJS's picture

I can understand the need to draw a distinction between auctioning, at high cost, desirable and career-boosting internships and unpaid internships which can be applied for with a CV. However, I'm not sure it stands up.

The two opportunities are still not equitable if people are excluded from them by an inability to pay. When I graduated sixteen years ago I was in significant debt. It took me five months to find a paying job, during which time my debt increased. In addition my first paying job was only part-time which also increased my debt. There was no way at all that I could have afforded to support myself in unpaid work, however desirable an opportunity might have turned up.

So the auction may look ostentatious and distasteful but the offering of unpaid internships even through application by CV is equally discriminatory and inequitable.

Martin L's picture

spot on badger - the world doesnt owe anyone a living - even with first class honours! None of us can choose our start (mine a deprived yorkshire pit village). Nor can Cameron help being born privelidged, but all of us should focus on where we are going, not blame everything on others. The world is unjust, whilst we shouldnt blindly accept it, we shouldnt use it as an excuse!

C Scott's picture

I understood from a recent BBC Breakfast report that, with a few exceptions, it is illegal to have interns doing a job and not being paid.

CrISpY DuCk's picture

My working class sister got a first with honours.She is about to be thrown onto the scrapheap as this anti public sector obsessed government set about dismantling the development agency she works for.She is a single parent and works long into the night because she cares.My best friend who also has a brilliant mind is set to join her at the dole office courtesy of Andrew Lansley.Both will most probably lose their homes.

Both fucking brilliant at what they do.Anyone know of any jobs being created in the private sector ?

CrISpY DuCk's picture

PS Both pay a shit load of tax and my sister pays out £750 per month in nursery fees.Can anyone tell me how much unemployment benefit the govt will pay them and how much housing benefit they can claim

jie4v7i14's picture

C.Scott. Labours introduced minimum wage, perchance? six bucks plus I think it stood at, at the beginning of May?

laurencehins111's picture

This is a great article.

My first thought about unpaid internships is: fine. Don't want to do it, then just lower your expectations and/or move to a less competitive field and get a paid job. Also, presumably companies can appeal to financial crises past-present-future to justify being unable to pay interns.

This quickly crumbles away though.

Why are there so few jobs? And why is so little work contributing anything to society? The root causes of this need to be tackled.

I don't believe that companies - especially the slightly larger ones - couldn't push a few extra paid internships through.

The auction is a great example as it feels obviously immoral. But it's just a slightly more extreme version of standard unpaid internships which aren't (at least immediately, to me) immoral. Selection for internships is not only based on ability: obviously you have to have enough money to work without pay and to apply for an internship. So the unpaid internship club is only marginally less elite than the auction.

Perhaps the only right thing to do is to ban unpaid internships. Everyone or no one.

Edwin Zola's picture

"After the relative levelling of university, class reasserts itself with whiplash force as graduates from low-income backgrounds find the doors of opportunity slammed in their face."

Nail on the head.

Steven Boyd's picture

Oh, the New Statesman doesn't auction theirs off so they're all fine and dandy. They even pay travel costs! That's just WONDERFUL! We all know there's no talent in the country outside London anyway.

You're every bit as bad as them, you bourgeois liberal twats.

Paul Sellers's picture

Many companies offering unpaid internships are breaking the National Minimum Wage Regulations. See the TUC site: http://www.rightsforinterns.org.uk/
for advice.

The Badger's picture

CrISpY DuCk: What they do is they pick themselves up, dust themselves down, and go out and find another job – or maybe even go into business on their own account. Things may not be quite so rosy for a little while, maybe they will have to accept a bit less pay and say goodbye to that gold-plated public sector pension, but, since they both have brilliant minds, they will find themselves in a much better position than many. As somebody who was born into the kind of stereotypical environment that everybody seems to want to pour so much sympathy into these days (namely, in my case – a sprawling council estate in Newport, South Wales) I’m sick of hearing this kind of whinging. Since barely scraping through university (my own fault) and starting work in 1980 I have weathered a number of recessions and found myself out of work on a number of occasions – some of them “unfairly”. I was never out of work for long, and I was paying and continue to pay a great deal of tax. I have only a moderately good mind, certainly not brilliant, and yet I have managed over the thirty years involved to significantly improve the lot of me and my family compared to what my “roots” would seem to popularly imply I could expect to be condemned to. Why? Because I got of my arse and helped myself – that’s why! If I and many others like me can triumph then surely it will not be too difficult for them?

jie4v7i14's picture

so I assume by all your thoughts that the condems are going to erode the basic wage, the best thing that has released wealth to the regions, or do we need to go back to planning civil war against you essex and thames valley upkept tools?

JustinMcKeating's picture

'(Disclosure: the New Statesman employs unpaid interns)'

Yep. A few years back after finishing my NCTJ I wrote to the NS asking if there was any chance of some work experience. Three-month unpaid internships only, came the reply. Mummy and Daddy didn't have the money so that was that.

Jim's picture

Is the NS going to change its policy towards interns? Surely you should pay reasonable travel and lunch costs? It's a matter of company honour.

BadConscience's picture

It's not about "company honour", Jim, it's about social justice:

http://badconscience.com/2009/02/28/social-mobility/

Jim's picture

Last time I heard, notions of company honour and social justice weren't mutually exclusive.

Disgusted's picture

If magazines like The New Statesman are not willing to take a stand and refuse to employ unpaid interns what hope is there for social mobility in this country? Any amount of worthy articles about how unfair it all is count for nothing if you don't actually put what you supposedly believe into practice. And then of course there is the fact that it is illegal to require someone to turn up and perform specific tasks without actually paying them - look again at the minimum wage legislation.

triedeinsursE's picture

Laurie, talk about the pot calling……When you accepted your unpaid internship you were endorsing the very system that your writings are now paying for your salary. What is the difference between an affluent student paying for first class job experience and a fortunate girl with a conveniently deceased relative? The student is a person of privilege and so were you, at least in this instance. An internship is an extension of a student’s education. The more green you or your folks lay out, the better your education. What’s your problem exactly?

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