This paper investigates the job reallocation and labour mobility among the Norwegian firms that are heterogeneous with respect to the internationalization strategy, R&D intensity and knowledge activity level by using the matched trade data and employer-employee data from 1996 to 2005. The results show that there has been a downsizing of manufacturing mainly through decreased job creations in the period of study. Within manufacturing, significant amount of jobs have been reallocated from non-exporters to exporters and from low R&D-intensive industries to high R&D-intensive industries. The stability of the workforce in exporters is significantly higher than that of the workforce in non-exporters. The mobile workers from exporters more likely change to other firms which are also exporters. However, there are more mobile workers that have reallocated from non-exporters to exporters than between non-exporters. The main trend in manufacturing is that jobs and workers are reallocated from the less efficient firms to the more efficient firms. This pattern of job reallocation and labour mobility are likely to have a potential influence on the aggregate productivity growth of the manufacturing in Norway.