Seven To Ten

Even as companies trim their payrolls, they are also watching future expansion by stocking up on summer interns.

Employers, in a sign that they are looking beyond the current economic slowdown, are using intern programs to help build their junior ranks. Certainly interns can provide cheap and eager labor. Moreover, they bring fresh ideas and allow companies to build their talent pools.

Firms are hiring a larger number of their entry-level workers from their intern pool, so they are looking to lure top college students well before graduation. Employers plan this year to increase their internship rosters by 3.7% over 2007.

College administrators report similar findings, saying that most students seeking these posts have been able to secure them, albeit not always in the desired company but at least in the appropriate industry.

The bullish market for interns is good news for those in college, who find that internships are increasingly required for landing that first job. The summer posts allow students to bolster their resumes, learn more about their field of choice and meet executives who could hire them for full-time positions one day. And they often pay a good wage: on average, $16.33 an hour, or $7,850 over 12 weeks.

To be sure, some businesses are cutting back on these training programs. A number of Wall Street firms and banks, which are reeling from the credit crunch, aren’t offering as many opportunities. Some newspapers have eliminated their programs. Likewise, smaller firms struggling with the weak economy and the slowdown in consumer spending say they don’t have the time to find duties for students and to supervise them.

But unlike past economic downturns, when companies slashed both their intern and entry-level employee ranks and found themselves struggling to fill positions when business rebounded, most firms now look at these workers as future full-timers.

Many firms pride themselves on cultivating their interns. Walgreens, the largest employer of interns, likes to point out that its president, Gregory Wasson, started as an intern in 1980. This year, the company plans to hire at least 7,300 pharmacy, corporate and business management interns.

Of course, a key reason interns tend to perform better once they are hired is because companies have three months to evaluate them and pick the best ones for full-time positions. How students do during internships tells recruiters more than interviews or resumes ever could.

Universities are also recognizing the increased importance of internships and are working harder to secure spots for their students, said Richard Bottner, founder of Intern Bridge, a college recruiting research and consulting firm. Some colleges are even requiring students to do at least one internship to graduate.

At Washington University in St. Louis, for instance, career center administrators are more aggressively marketing the school to employers these days. Even with the shaky economy, the university saw an uptick in the number of companies coming to campus for career fairs and information sessions.