In normal times, Shannon Otto, a senior at the University of Georgia, would likely have no trouble finding a job in journalism.
She has worked as an intern for VH1, the "Rachael Ray Show" and New York public relations firm Lou Hammond & Associates. She also has three years of experience working for her school paper, The Red and Black, where she is now an editor.
As a creature of the news, Otto knew she was facing a difficult job search. But she thought that with her extensive experience, a decent entry-level position would come her way.
But she and many other college seniors have been forced to try for internships in addition to permanent jobs. "At first, I wanted a job and didn't even think about an internship," Otto says. "I never realized I would have to go back to being an intern, but now I've kind of accepted it. A good internship can lead to something permanent."
Application explosionAs a result of the tribulations of job seekers like Otto, companies and organizations offering internships have seen a substantial increase in applications.
"We had a pretty significant spike in the total number of applicants -- up 40 percent from last year," says Michael Drueen, director of human resources at the American Enterprise Institute, or AEI, one of the nation's most prestigious economic and political think tanks.
AEI, based in Washington, D.C., has received 900 applications for about 45 unpaid summer internships, making a position there more exclusive than getting into Harvard.
AEI tilts a bit right of center, and at the Center for Economic and Policy Research, a renowned Washington, D.C., think tank that skews to the left, the story is the same. "We've probably seen about twice as many applications as last year," says center spokesman Alan Barber.
The chances of landing an internship there are even more daunting. Three paid interns will be selected from a total of 350 to 400 applicants. Even people with doctorate degrees are applying, Barber says.
At AEI, Drueen is seeing a significant increase in interest from applicants with a hard-core math-economic background. In the past, those students thumbed their noses at AEI's volunteer internships. "A good number of them were getting drawn off by Wall Street with the promise of a large paycheck," he says.
But now Wall Street often doesn't have a paycheck to offer, so an unpaid internship at AEI suddenly doesn't look so bad.
Replacements for permanent jobsSome employers are offering internships instead of permanent jobs, says Rebecca Sparrow, director of career services at Cornell University. In the past, internships were often given to juniors. Employers thought of these internships as a two- to three-month job interview with the idea of a full-time position one year out.
"But now we are seeing an increase in employers offering internships to seniors that really are short-term positions," Sparrow says. "Rather than increasing the head count, you can have short-term positions (internships) open to seniors. Then everyone hopes the economy rights itself, and you can bring the people on board as full-time hires."
Another trend is that fewer internships are paid. "I've seen so few paid that it's unbelievable," Otto says.
Of course, not everyone can afford an unpaid internship. "We encourage students that if they can't find anything but unpaid internships, maybe get an internship on a part-time basis and pair that with a position that makes money, say, waiting tables," Sparrow says.