Sometimes a recirculating line is used from the discharge side of the pump to the suction. Especially with hot water, a certain amount of flow, recirculating or going downstream, is needed to maintain the cooling for the pump and seal. Without some water being let out downstream, the recirculating line will continue recirculating the same water, until a critical temperature is reached and the pump will fail. Recirculating lines are usually used to maintain a certain flow for cooling, for a short amount of time, when the discharge from the pump is temporarily lessened or shut off.
Recirculation within the pump itself, is a different thing. There is some recirculating form the discharge of the impeller back to the eye of the impeller. Some flow slips between the impeller and the wear ring, (high pressure side to low pressure side) and re-enters the eye of the impeller. This is dependant on the clearance between the impeller and the wear ring. This clearance becomes larger, and recirculation increases, as the impeller and the wear ring wear down over time.
There is also recirculation within the impeller. As the discharge flow is lessened, flow within the impeller also lessens. When there is very little flow through the impeller, some of the fluid will just bounce around in certain pockets and eddies, and stay inside the impeller.
Both of these kinds of recirculation will cause cavitation like wear on the impeller. The worm hole effect you see, will be in different areas of the impeller, depending on the type of recirculation.
Sufficient flow is usually the best way to reduce recirculation. When pumping cool water, very little flow is required to prevent excessive recirculation. You must maintain enough flow so that the temperature of the water does not increase very much. The higher the temperature, the worse the cavitation like wear. Except for some really large pumps, recirculation at fairly low flow rates are usually not much of a problem.
Large pumps or small, if recirculation is a problem, impellers of higher tensile strength will resist the wear better.