When order books shrink and layoffs increase, many schools ask the same question: will our students still find internship placements? The answer is nuanced. Some industries pull back, while others see internships as a way to still secure future talent. History shows that internships are more resilient than one might think – but that matching becomes even more important.
A recession's impact on internship placements means companies with decreased operations take on fewer or no interns, while schools' need for placements remains constant. The result is increased competition for fewer spots, especially in cyclically sensitive industries.
What happened during previous downturns?#
The 2008–2009 financial crisis#
During the financial crisis, internship placements decreased mainly in construction, manufacturing and transport. Healthcare, social care and education were minimally affected. Schools reported it took 20–30 percent longer to match all students.
The 2020–2021 pandemic#
Covid-19 had a dramatic but uneven effect. Hotels, restaurants and events almost completely disappeared as internship hosts during lockdowns. IT and healthcare, on the other hand, increased their capacity. Digital solutions like remote internships and hybrid setups were tested at scale for the first time.
The 2025–2026 economic slowdown#
The current slowdown hits primarily the construction sector, retail and the consulting industry. The public sector – healthcare, schools, municipal services – is relatively stable. This means internships in vocational programs with public sector connections are less affected.
Which industries are most affected?#
| Industry | Cyclical sensitivity | Internship effect |
|---|---|---|
| Construction | High | Fewer projects → fewer placements |
| Restaurants and hotels | High | Decreased demand → cutbacks |
| Retail | Medium–high | Store reductions → fewer placements |
| IT and tech | Medium | Startups cut, large companies recruit |
| Healthcare | Low | Shortage regardless of cycle |
| Public administration | Low | Stable demand |
Why companies should still host interns during a recession#
Low cost, high return#
Interns cost no salary. During periods of lower workload, the supervisor has more time – and the student often gets better guidance than during peak season.
Pipeline for the upswing#
Recessions end. Companies that maintain contact with schools and students during the downturn have an advantage when recruitment needs return.
Goodwill and employer branding#
Withdrawing from internship partnerships during tough times damages the relationship with schools and signals to future candidates that the company doesn't stand by its commitments.
Supervisor competence is preserved#
If supervisors stop hosting interns for a year, they lose the routine. That makes restarting harder.
What schools can do#
Broaden the company network#
Don't rely on the same ten employers. During a recession, the school needs more alternatives – preferably in cyclically stable industries.
Activate the public sector#
Municipal administration, healthcare and schools have placements that are rarely fully utilized. They're also less sensitive to economic cycles.
Offer flexibility#
Shorter internship periods, part-time placements or project-based internships may be easier for companies to say yes to during difficult times.
Market the benefits of internships#
Remind companies that internships don't cost employment wages. Highlight that an intern can help during periods with limited staffing.
What students can do#
- Search more broadly – not just the dream company
- Be flexible with location and tasks
- Contact companies that don't advertise placements
- Highlight your motivation and willingness to contribute in your application
- Plan extra time for the search
Frequently asked questions#
Does the number of placements automatically decrease in a recession?#
Not automatically, but experience shows that cyclically sensitive industries cut back. Other industries remain stable or increase.
Can the school force companies to host interns?#
No. Internships are voluntary. The school can, however, strengthen relationships and make it easier for companies to participate.
Should the school lower quality requirements to find placements?#
No. Lowered requirements lead to poor internships, which in turn lead to students and companies losing trust in the system.
Does remote internship work as a replacement?#
In some professions, particularly IT and administration. But for practical professions like construction, healthcare and hospitality, physical presence is required.
How long does it take for the placement supply to recover?#
Historically 1–2 terms after the economy turns. Faster if the school maintains its company contacts during the downturn.
Conclusion#
A recession is not a reason to give up on internships – it's a reason to make them smarter. Schools that broaden their networks, activate the public sector and offer flexibility handle downturns better. Companies that continue hosting interns build relationships that pay off when the upswing comes.
Sources#
- National Institute of Economic Research – economic tendency survey 2026
- Swedish Public Employment Service – labor market forecast spring 2026
- Skolverket – experiences of APL during the pandemic, follow-up report 2022
- SCB – labor force barometer 2025
