It’s Almost Impossible to Find an Internship: Leveraging Social Capital in Tech and Finance

Hello Readers,

In today’s competitive job market, finding internships and entry-level positions has become increasingly challenging. According to a recent Bloomberg report , the total number of internships listed on Handshake, a job search platform for college students, fell more than 7% from last June through May compared to the same period a year earlier. This decline is coupled with a significant increase in competition, as the average number of applications per internship rose from 53 to 93.

As someone deeply invested in coaching and mentoring young people, I see firsthand the hurdles they face daily. Many are struggling to find their footing in an environment where the demand for skills is high, but the pathways to gaining those skills are fraught with obstacles. Fields like finance, consulting, and tech have cooled dramatically, with industry-wide layoffs and companies like Tesla rescinding internship offers just weeks before they were set to begin.

Networking vs. Building Social Capital

It's essential to differentiate between networking and building social capital, both crucial for professional growth yet distinct in their approaches and outcomes:

Networking

• Focus: Making new connections and expanding your professional circle.
• Methods: Attending events, conferences, or gatherings to meet new people and exchange contact information.
• Nature: Often transactional, aiming for immediate benefits or opportunities.
• Duration: Typically short-term and surface-level.

Building Social Capital

• Focus: Cultivating deeper, more meaningful relationships over time.
• Methods: Providing value, support, and genuine interest in others without expecting an immediate return.
• Nature: Accumulates through consistent efforts to nurture connections and build trust and goodwill.
• Duration: Long-term investment in mutually beneficial relationships.

While networking can be a part of building social capital, the latter is a more comprehensive and sustainable approach. Influential people focus on building social capital by:

1. Being authentic and approachable in their interactions.
2. Offering their expertise, insights, and assistance to others without expecting reciprocation.
3. Maintaining and strengthening existing relationships through regular check-ins and support.
4. Seeking opportunities for collaboration, mentorship, and knowledge-sharing.

Current Challenges

The job market for young professionals is particularly tough right now. The number of internships on ZipRecruiter has dropped by 14% in the first quarter compared to the same period last year. Companies are scaling back their internship programs due to cost-cutting measures and a focus on efficiency. For instance, Goldman Sachs saw over 315,000 applicants for only 2,700 spots this year, an acceptance rate of less than 1%.

Educational programs and workshops are becoming more common as companies look for less expensive ways to maintain their presence on campuses. Morgan Stanley and Goldman Sachs, for example, offer workshops and programs for undergraduates to keep students engaged even when fewer formal internship opportunities are available.

Strategies for Young Professionals

Here are a few strategies that can help young professionals navigate this challenging landscape:

1. Reach Out to Alumni Networks: Leveraging connections from your educational institutions can provide valuable leads and advice. Educational institutions have a wealth of resources and connections that can be tapped into. For example, one student applied to over 40 internships this spring and used the summer to develop video editing skills and build a presence on TikTok, enhancing employability in social media marketing.
2. Engage on Professional Platforms: Regularly updating your LinkedIn profile and participating in industry discussions can increase your visibility. However, while LinkedIn is a valuable tool, I believe it does not yet provide the intentional support needed for college and entry-level talent to build their social capital effectively. For instance, another student applied to 60 internships and used LinkedIn to network with employees at each company, eventually securing a role through a senior connection at New York Life Insurance Company.
3. Attend Industry Events: Whether virtual or in-person, these events are goldmines for making connections and learning about job openings. Networking events can be particularly beneficial in industries that have seen a surge in capital investments, such as technology and finance.
4. Join Mentorship Programs: Programs like 'Bevon's Mentee Network ' are designed to connect young professionals with experienced mentors who can guide them through the job search process. Having a mentor can provide personalized advice and support that is crucial in a competitive job market.

The Long-Term Importance of Internships

The economic landscape is evolving rapidly, and young professionals must adapt by leveraging their networks effectively. The importance of internships cannot be overstated, as research from the Burning Glass Institute and the Strada Education Foundation indicates that those who don’t complete an internship while in school are at substantially greater risk of long-term underemployment.

Networking isn't just about asking for jobs; it's about building relationships, gaining insights, and positioning yourself as a proactive and engaged professional. The stakes are high, but with the right strategies and support, you can navigate these turbulent times successfully.

Let’s continue to support and uplift each other as we strive to build successful careers. Stay connected, stay proactive.

#Networking #SocialCapital #CareerAdvice #Mentorship #JobHunt #YoungProfessionals #CareerGrowth #TickTock