The “Internal Labor Market” consists of the organization's workers - its employees and the people who have contracts to work at the organization. the “External Labor Market” consists of individuals outside the organization who are actively seeking employment.
Internal labor markets are those where laborers are contracted into passage level employments and more elevated amounts are filled from inside. Wages are resolved inside and might be very free of market weight. External labor markets suggest that laborers move fairly smoothly among firms and wages are dictated by some total procedure where firms don't have huge tact over wage setting.
