Obama Administration Turns Its Back on the Youth, Student Labor Market and Small Businesses Seeking a New Generation of Entry TalentMAY 25 - PHILADELPHIA PA – In The Internship Institute’s conversations across the country, two relevant concerns have emerged about the future of internships and the future of student employment in America - and neither report from the field are good indicators for our country. First, the U.S. Department of Labor (DOL) has effectively told youth and students – the very core of the Obama “change” movement that got him elected – internships are effectively over. In its over-zealousness to “regulate” the corporate use of youth and students, the DOL has put a chill on the future of internships.
Second, as our economy still works through major transformations – and according to highly regarded economists the Nation’s recovery is still not out of the woods yet – youth and students in America face the bleakest job future since the 1970s. Unless internships are revitalized and even embraced by the Obama Administration – America could easily resemble Germany and France in 10 years or less with millions of unemployed youth - buried in debt with limited earnings potential to ever recover and with good reason to be increasingly anxious about their futures.
To recap, the DOL’s recent crackdown on American businesses reasserts an antiquated system of compensation exemption that is guided by a 63 year-old “Six-Pronged Test.” These guidelines are counterintuitive to making internships beneficial for students and employers alike. As such, the DOL is essentially saying that any for-profit company with an unpaid internship of any real mutual value is probably breaking the law.
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Second, as our economy still works through major transformations – and according to highly regarded economists the Nation’s recovery is still not out of the woods yet – youth and students in America face the bleakest job future since the 1970s. Unless internships are revitalized and even embraced by the Obama Administration – America could easily resemble Germany and France in 10 years or less with millions of unemployed youth - buried in debt with limited earnings potential to ever recover and with good reason to be increasingly anxious about their futures.
To recap, the DOL’s recent crackdown on American businesses reasserts an antiquated system of compensation exemption that is guided by a 63 year-old “Six-Pronged Test.” These guidelines are counterintuitive to making internships beneficial for students and employers alike. As such, the DOL is essentially saying that any for-profit company with an unpaid internship of any real mutual value is probably breaking the law.
Download the PDF
