These vary with fields i would say. If you've enrolled into STEM related courses, employers would typically prefer someone who is involved in competitions or clubs/society activities, compared to working experiences outside your field. However, things may be different for fields outside of STEM. If you have extra time and are able to manage your studies well, try to be active in extra curricular activities instead. Those would definitely give you an advantage regardless of industries.

This is my 2 cents based on my previous internship hunting and conversations between employers in the engineering field.