Out of the more than 5100 people participating in the PaTH (Prepare, Trial, Hire) program in 2018, more than 1900 of the internships resulted in a job.

Last year saw 20 people from the ACT get an internship through the $840 million program, with 12 of those completing it and nine securing employment.

The ACT had the highest percentage of PaTH participants who completed the internship that became employed, with WA coming in second with 72 per cent of its interns getting hired, followed by Victoria with 68 per cent of interns and NSW on 65 per cent.

Despite the ACT's success in the last calendar year, the jobs figures decreased from 2017, when all but one of the 19 interns got a job out of the program.

During the last year, nine businesses in the ACT took in interns through the government program, down from 15 the year before.

The program, announced during the 2016 federal budget, involves young people receiving employability skills training, before being able to apply for internships with approved businesses.

Interns can receive $200 on top of their existing Centrelink payments, with businesses receiving $1000 for every intern they take in, although they are not obligated to pay wages for the intern.

A Department of Jobs and Small Business spokesman said businesses are selected based on the likelihood of employment at the end of the internship.

"Before an internship can begin, the host organisation must warrant that there is a reasonable prospect of employment for the participant following the internship," the spokesman said.

"Employment service providers use local knowledge and information in previous internships to determine if the placement suitable."

Figures released in December revealed only 20 per cent of the number of businesses needed to hit government targets had signed up for the scheme.

The program aimed to put 120,000 young Australians into work over four years, but only 36,290 have secured a place during its first two years.

The department spokesman said it was working alongside employers and industry bodies to encourage more young people to take part in the PaTH program.

"The department also works with state and local governments, regional and economic development organisations and has initiated or engaged in more than 140 employer events," the spokesman said.

Peak body Interns Australia previously criticised the government scheme and said it normalised free work.

The organisation's director Tilly South said many of the internships had been ineffective, or in some cases, exploitative.

"There hasn't been as many people getting jobs out of it as first reported, and they're taking entry-level jobs away from people who would normally get these positions in companies," Ms South said.

"There's an unfairness in that people aren't getting jobs at the end of it and they're going through a period of very low wages."

It comes after fast food chain Hungry Jack's came under fire for advertising for positions through the PaTH program during last year's Christmas period. Ads for the role said the position was for 15 hours a week, with interns earning $6.66 an hour.

Ms South said more should be done to make the internships equitable.

"The government would need to ensure the internships are for the benefit of those completing it, and not the employer," she said.

"Internships should be a learning experience and it shouldn't mean the employer getting cheap labour."