The article analyzes how the job market in Estonia changed during a period of major reforms. In the late 1980s, there was little movement in job and worker reallocation. By the mid-1990s, job creation and destruction rates increased, leading to higher worker and unemployment flows. Initially, job destruction was higher than creation, causing a rise in unemployment. However, by the mid-1990s, job creation balanced out the restructuring process. This surge in labor market flows in Estonia was different from other countries that implemented slower reforms.