Labour market flexibility (the ability of labour markets to accommodate shocks and to allocate human resources for their most efficient use) is crucial for economic growth and stability. The labour market flexibility is often considered to be a target of economic policy. An important aspect of it is labour market flows, i.e. the flows of workers between labour market states (employment, unemployment, and inactivity), flows of jobs between firms (job creation and job destruction at the firm level), occupational mobility of workers. By now, various papers have studied these issues also for Estonia, e.g. Eamets (2004) studied worker flows by using the Estonian Labour Force Survey (hereinafter also ELFS) data, Masso et al. (2004) studied job flows using Estonian Business Registry data, Campos and Dabušinskas (2003) investigated occupational mobility during 1989-1995 using the ELFS 1995 data. Still, one aspect that has been neglected, but we argue deserves attention (as we will show soon), is the difference between the jobs and worker flows, so called churning flows (Burgess et al. 1996).