Wendy Williams likes to call it the “internship economy.”

“Because a lot of people - particularly in the field I’m looking for work -- can't afford to work for free just for the resume (benefits),” she said.

How else to describe why Williams is unemployed and Case Ernsting found a job in January?

Ernsting, a spring 2009 University of Michigan graduate, is fresh off internships last year with Ann Arbor-based Web site design and marketing firm MetaSpring and Ann Arbor-based public relations firm Eiler Communications.

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Ann Arbor resident Wendy Williams dubbed this the "internship economy."

However, Williams, who owns a home in Ann Arbor, can’t afford to take an internship, paid or unpaid.

They have similar skills. Both are experts on social media, Web marketing and blogging. Both have developed a definable - and similar - brand for themselves.

But the fickle economy seems to be favoring people like Ernsting, whose willingness to take his paid internship with MetaSpring was crucial in landing a permanent job there.

“It was basically a four-month interview, day to day, to see just how I responded to criticisms, my ideas and self motivation,” Ernsting said of his internship. “If you don’t have that, it’s hard to keep you in such a small company.”

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Case Ernsting of Ann Arbor-based MetaSpring

But the proliferation of internships isn’t altogether promising. Ernsting has noticed a trend. Companies are starting to rely on unpaid interns instead of permanently hiring entry-level employees - if only because so many people are desperate for experience.

“With the unpaid ones, they seem to be too prevalent,” he said.

That mirrors Williams’ experience.

“My biggest frustration has been there are several people, I think, who would like to hire me, but nobody has the money to bring on a full-time employee or even part-time really,” she said.

The competition for full-time jobs is incredibly intense.

Williams has 10 to 15 years of experience in graphic design and five years as a publicist in the music industry. She has extensive experience helping businesses venture into the blogosphere and social media world. She’s managing eight Twitter accounts for herself and a few clients - but she’s been shut out from full-time jobs as a communications specialist.

“I must have papered the town with resumes - like 100,” Williams said. “I’ve applied to ad agencies, to Google, to places in the university. It’s pretty dire, I’ve got to say. I’m totally running out of money, but everyone is in the same boat, I suppose.”

That doesn’t mean she’s losing hope. In fact, she said, she’s sensing an emerging feeling of optimism.

“The most interesting thing about these times right now, I would say, is at the same time that it’s incredibly dire and no one is hiring and there’s a lot of financial anxiety with businesses, I am sensing such a moment of a lot of hope actually,” she said. “A lot of new opportunities seem to be rising.”

Contact AnnArbor.com’s Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com or follow him on Twitter. You can also subscribe to AnnArbor.com Business Review's weekly e-newsletter or the upcoming breaking business news e-newsletter.