Summary of the editorial from IDS Pay Report 962, September 2006

Pay and bargaining prospects 2006/07

Inflation outlook places upward pressure on pay reviews

This special issue of IDS Pay Report contains our annual assessment of the key items on the reward agenda for the coming year. We review developments in pay and conditions for 2005/06 and look forward to 2007. In particular, we present inflation forecasts for the next 15 months. A key question is how the inflation outlook will affect pay setting throughout the remainder of 2006 and the first few months of 2007. We examine pay developments on a sector-by-sector basis, and we also look at prospects for the labour market, which presents an apparently contradictory picture. Official figures show that while employment continues to grow, unemployment is also on the rise.

... the full editorial can be read in IDS Pay Report 962