The original goal of our labour market yearbooks is to review annually the main developments in the Hungarian labour market and to give an in-depth analysis on selected issues. Experiences accumulated through the publication of the previous volumes (seven in Hungarian and five in English) and their reception in Hungary and abroad confirmed our original idea and gave us the stimulation to enhance both the contents and the quality of the new volumes. This volume consists of four parts: 1. Labour market trends in Hungary: In this chapter we present the main labour market trends in 2006. 2. In Focus: This year we put “in focus” wage formation on the Hungarian labour market. 3. Legal and Institutional Environment of the Hungarian Labour Market: This year’s study is a summary overview of the current legislation and rules, having unemployment benefits and active labour market policies in its focus. 4. Statistical data: The closing chapter presents a statistical data set, and gives comprehensive information on the main economic developments, such as demographic trends, employment, unemployment and inactivity, wages, education, labour demand and supply, regional differences, migration, commuting, and labour relations, together with some international comparisons and methodological remarks.