Organizations, recruitment and the local labour market: the case of the Sheffield metal sectors

An examination of the relationship between large organizations and local labour markets which draws attention to the role of the extended internal labour market (EILM). This paper explores recruitment strategies in the local labour market amongst 52 major employers in the metal sectors in the Sheffield local labour market. It shows how dependence on the external labour market rather than the internal labour market varies with the different occupations recruited within the local area and that, in some occupations, the EILM plays an important role. Where recruitment difficulties are experienced there are a variety of responses, all of which have particular implications for the amount and type of labour sought from the external labour market. The paper concludes by arguing for a greater emphasis on the recruitment strategies of larger firms in employer surveys to provide new insights into the operation of local labour markets and, in particular, the operation of the EILM.