External factors
Demographic factors: Demographic factors such as sex, age, literacy, economic status etc, have influence on recruitment process.
Labour markets: Labour market conditions, that is, supply labour is of particular importance in affecting recruitment process. If the demand for a specific skill requirements is high relative to its supply, recruiting employees will involve more efforts. On the contrary, if supply is more than demand for particular skill, recruitment will be relatively easier.
Unemployment situation: The rate of unemployment is yet another external factor having its influence on the recruitment process. When the unemployment rate in a given area is high, the recruitment process tends to be simpler.
Labour laws: There are several labour laws and regulations passed by the central and state Governments that govern different types of employment. These cover, working conditions, compensation, retirement benefits and safety and health of employees in industrial undertakings. Child Labour (Prohibition and Regulation) Act, 1986, for example prohibits employment of children in certain employments. So also, several other acts such as Employment Exchange (Compulsory Notification of Vacancies) Act, 1959, the Apprentice Act 1961; the Factories Act, 1948 and the Mines Act 1952 have bearing on recruitments.