One of the most significant environmental influences on selection is the size, composition, and availability of local labor markets. These, in turn, are affected by economic, social, and political pressures on a community. At a basic level, when unemployment rates are low, it may be difficult for an organization to identify, attract, and hire the number of people it needs. On the other hand, when there is an over supply of qualified applicants, selection strategies can be very different.
Those who work in human resource management evaluate the effects of the labor market on selection decisions by using a selection ratio: