In Russia, the extent of the use of fixed-term contracts is comparable with that in other countries. Fixed-term contracts allow businesses to adapt to fluctuations in demand; allow for the selection of employees for performance on permanent jobs; form a buffer to protect permanent jobs. The Purpose of the Study is to determine the effects of the business use fixed-term contracts for the operation of the Russian labour market. Problem. On the one hand, due to the use of fixed-term contracts, enterprises can achieve the best match between workers and jobs. At one and the same jobs they can be re-hire and fire workers with them, which will lead to an increase in labour mobility and movement of labour in the labour market. Fixed-term contracts for workers mean reduction of employment protection and the reduction of costs for the enterprises use labour. They can affect the reallocation of labour from less productive firms to more productive firms. They can influence the creation and elimination of jobs, reflecting on the movement of jobs in the labour market. The Subject of the Study is the effect of fixed-term contracts on the labour movement and the movement of jobs. The Object of the Study. Companies employing at least 10 people in six industries (mining, manufacturing, construction, transport and communications, trade, finance and business services) were studied. By using two step method of least squares (2SLS) the effect of fixed-term contracts of hiring and firing workers, the creation and elimination of jobs was evaluated. With the application of the generalized method of moments (GMM) the effect of fixed-term contracts to the “idle” labour turnover was calculated. The study was performed using the data of Russian enterprises (2009–2011). As a result, it was found out that companies with fixed-term contracts often hire and fire workers at the same time more often. Fixed-term contracts contribute to the redistribution of the labour force in the labour market and increase its flexibility. However, with the increasing number of fixed-term contracts movement of jobs is reduced. Under the influence of fixed-term contracts the enterprises liquidate jobs much oftener than they create them. “Idle” labour turnover increases but transition workers into permanent jobs is less likely at the enterprises with fixed-term contracts.