Gillian Carr has applied to paid internships for this summer in Edmonton, Windsor, Calgary, Toronto and throughout the East Coast. No luck so far.

So the 21-year-old fourth-year journalism student at Carleton University is contemplating whether to create her own opportunity by offering to work for free.

As part of her course, she's just about to start a two-week unpaid internship in Charlottetown at CBC Television, helping with daily newscasts, gathering tape and writing news clips.

While she had hoped for a paying job in her field this summer, she knows she may have to do more unpaid work if she wants to gain a toehold.

"There's definitely a shrinking pool of paid opportunities," she says.

"It's getting harder for us, and I'm sure for people in other creative fields, too."

It's a situation a growing number of students may face as the economy stumbles and companies look to cut costs. While most internships in Canada have traditionally been paid, tightening budgets and hiring freezes may mean some stipends for internships may soon disappear, says Bill Weber, Toronto-based head of human resources for Drake International.

It's one step away from what is already happening in the United States, where competition for jobs is even more ferocious — so much so that some eager interns are actually forking over thousands of dollars to pay for the privilege of an internship position.

It's delicate terrain for both employers and unpaid workers. Companies need to ensure unpaid staff get valuable work experience, which still means devoting resources to training. Interns, or volunteers, want exposure to a new job without exploitation.

Willing to work for free

For some, especially in fields like publishing or advertising, unpaid internships can be one of the few ways to crack into a new career.

For the growing legion of workers facing pink slips and now contemplating a career change, volunteering helps test-drive a new type of work.

Short-term, unpaid work can help young people and jobless older workers learn new skills, bolster résumés and network, says Mr. Weber, who has seen those internships "in many instances turn into a [paid] position."

Employers who use unpaid interns say the benefits go beyond just free labour. It's far more effective than a job interview in getting to know new candidates. And it can give a company early dibs on promising graduates.

"It's a good potential source for employers," says Bill McDonald, group publisher of Metro English Canada, which distributes free daily newspapers and is a unit of Sweden's Metro International.

Earlier this month, the company's Toronto office laid off four unionized reporters and columnists, saying it will instead use paid freelancers and wire copy for content, and its unpaid interns for copy-editing functions.

In addition, it will keep its six-week unpaid internships. "Internship programs are a fantastic way for the industry to help develop talent and to keep the pipeline for future employees," Mr. McDonald says.

A fine balance

Colleen Kelly, executive director of Volunteer Vancouver, is anticipating that a wave of laid-off people will hit her office looking for volunteer opportunities this year. It's already started to happen, she says — highly skilled workers, for example, who are interested in getting into the environmental field.

The challenge for those willing to work for free is they often volunteer hoping to build professional skills — but employers stick them with repetitive, unrewarding tasks, such as filing or knocking on doors.

That mismatch between the experience sought and what's actually on offer is making people "frustrated … and disappointed," Ms. Kelly says.

Employers should carefully plan any internships — paid or unpaid — to ensure the experience is meaningful, rather than strictly menial, Drake's Mr. Weber says.

"If you want to attract the right person, you'd better give them the right opportunity. Don't bring them in and not have a clue what you'll do with them … Give them concrete roles, where they can have absolute results that make an impact."

What the interns say

Renette Machi has finished one four-month unpaid internship and is currently completing another in performing arts. The 54-year-old student at Capilano University in North Vancouver figures it's a necessary investment to break into the arts, where competition for work in the non-profit world is fierce.

"The world of arts is a small one," she says. "I've made a lot of connections and met a lot of people and filed them away for future reference. It plugs you in. That's a really important part of this practicum."

Others, such as Ms. Carr in Ottawa, fret about entering a field where much of the initial work is unpaid.

She remains torn about whether to work for free in her field, or seek a job in government or communications that will pay enough for her to return to university in the fall to do a masters degree in journalism.

"Our classmates are all wondering — in the future when they need new blood — we may all have gone into other fields because there weren't opportunities when we first [graduated]. And we couldn't afford to stick with it through the hard economic times."