This paper sets out to explore the use of panel data through an examination of a topic which is particularly suited to analysis with panel data; that of labour mobility. Labour mobility is the transition from one employment state to another over time. In this paper we will be mainly concerned with transitions between employment states and between employers using the British Household Panel Study (BHPS) data. Unfortunately, we only currently have one wave of BHPS, but it contains a retrospective account of employment over the previous year which in this paper will have to serve for the missing earlier wave(s) of panel data.