Internships can result in a job but competition is fierce, reports Jenny Knight

The shock news that one in four graduates from 2007 still do not have a full time job has made students more anxious to get ahead of the lengthening queue. As a result there is now enormous competition for summer internships.

The scramble for placements is understandable, as the majority of summer interns return for their final year of studies with a job offer.

Undergraduate applications for placements with Ernst & Young, the global professional services company, are up by more than 200 per cent this year. Already there are more than 2,800 applications for 750 places.

Stephen Isherwood, head of graduate recruitment, says: “We opened our applications three months early because so many students are applying. They need to be proactive and flexible, whether obtaining work experience or looking for opportunities beyond London. Those that rest on their laurels will miss out.”

Ernst & Young offers jobs on its graduate programme to 90 per cent of interns who take part in one of its two six-week paid summer courses.

“Graduates who were previously our interns perform more strongly,” Isherwood says. “The programme helps us get good people off the market early. But students who don’t get an internship should not despair. We are looking for rounded people with good skills and volunteering during the holidays can be just as good.”

Gloria Oriade, 22, started as a graduate trainee last month with KPMG, another professional services firm, after gaining a 2.1 in economics from University College London. She is studying for her accountancy exams.

“I won a place as a summer intern for eight weeks with KPMG last year in London, corporate working with various clients,” she says.

“I took a gap year before university and worked in the investment arm of a bank, but I didn’t like the culture or atmosphere. Then I worked at the Bank of England in the spring break and finally KPMG.

“Everyone was friendly and working in different departments and meeting clients gave me a good overview.”

KMPG takes about 150 interns on its paid vacation programme from students in their penultimate year. On the last programme 83 per cent of the intake were offered graduate jobs.

Iain McLaughlin, head of recruitment, says: “Applicants should be clear about how relevant a placement would be to what they want to do. They should give a compelling presentation to demonstrate their value and what they hope to get out of a placement. We look for interns who show enthusiasm, listen, show they are willing to learn and are adaptable. ”

Not every company pays its interns, but Centrica Energy’s 10-week summer placement scheme takes on more than 70 undergraduates, each earning £14,000 pro rata. More than a third of placement students go on to the company’s graduate scheme: according to its own survey, 74 per cent of the intake believe that a placement is key to getting a full-time job.