This paper explores the process of structural change in the post-transition Romania. A multinomial logit provides the technique to investigate the determinants of labour adjustments in the period 2003-06.The results suggest that male, younger and better educated individuals are more likely to leave agriculture and flow to industry and services, whereas self-employed farmers and family workers are less inclined to leave the agricultural sector. The findings are important from a policy point of view, suggesting the need for investments in human capital specifically in education with the purpose of enhancing the mobility of labour and facilitating a more efficient labour allocation. At the same time favourable labour market conditions need to be in place to sustain job creation and a smooth transition across activities.