Young job seekers are paying up to $2000 to get work experience as unpaid interns, raising concerns about the potential for exploitation and an unfair playing field for those unable to afford the opportunities.
With unemployment among those aged 15 to 19 hitting 20 per cent last week, its highest level in two decades, the need for work experience has become more crucial than ever in getting a job.
Executive director of Interns Australia Adi Prasad said he was concerned about a growing market in the provision of costly internships to help young job seekers "get a foot in the door".
"It creates an inequality of opportunity whereby only those who can afford that sort of money to pay the middle man can get that opportunity," he said. "It should be an opportunity people from all socio-economic backgrounds can attain.
"An internship can be a fantastic opportunity for an individual to get experience, gain new skills and form new networks, but it cannot be an excuse for an employer to get what amounts to free and cheap labour."
Secretary of Unions NSW Mark Lennon described unpaid internships as "abhorrent".
"There's a pressing need to clean up the internship process," he said. "The idea that people are paying for the privilege of doing unpaid administrative work is absolutely abhorrent. We need a code of practice for internships to ensure that young people get skills and experience and are not just exploited for free labour."
Andrew Stewart, a law professor at the University of Adelaide and who had conducted a national study on unpaid work, said internships needed to be associated with recognised education and training to meet legal requirements. Internship providers were also legally prevented from making false guarantees about internships leading to full-time employment.
While it was not unusual for job seekers to pay recruitment agencies for help to find a job, he was concerned about a growing trend towards the "unchecked and unregulated use of unpaid work".
"It has negative indications for the way our labour market works ... a fair day's pay for a fair day's work," Professor Stewart said.
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He said, "leaving aside questions of morality", businesses risked fines if they took on unpaid interns who were not connected to a training course.
The company Australian Internships is among those offering internships of up to 12 weeks for $1740 and $2060. Managing director Diana van Woerkom said the internships were linked to major universities around Australia.
“Academic success is not always indicative of success in the workplace," she said. "There needs to be a good partnership between academia and industry so that it benefits the students."
Ms van Woerkom said work experience should be an integral part of academic degrees. “Students who have never been in a workplace don’t understand what is required," she said. "We need to work with industry and industry needs to be responsible.
"I don’t support students making tea and coffee, it needs to be benefiting students."
Ms van Woerkom said claims students should not pay for internships were "unrealistic". Most of the internships were for international students.
"As a program provider we have to cover our costs," she said. "Our programs are audited by the Department of Immigration."
