not drop more during the economic upswing in the 1990s suggests that the labour market is not functioning satisfactorily. one example of rigidities in the labour market is that unemployment has remained around 8 per cent in the construction sector, even though it is one of the few sectors where activity has risen and labour shortages have begun to appear. another sign that the unemployment problems are structural in nature is the large differences across regions and occupational categories. in spite of a single monetary policy for the whole of the swedish economy, unemployment figures in some regions are twice as high as in others, while the proportion of people receiving benefit from their unemployment fund is twice as high in some occupational categories as in others. these differences seem to last over long periods, indicating that the problems are partly due to low mobility in the labour market. in addition, the need for labour market mobility is growing as a result of structural change. the previously typical cyclical pattern, where jobs are shed during a slump and then are recreated when the economy turns around, no longer generally holds true in all industries. jobs that are lost in a slowdown are being replaced, especially in manufacturing, by increased productivity and information technology. growth is leading to new jobs but in different places than before. that means that more people have to change workplace or sector, and results in the need for considerable adaptability. more jobs have to be created in, for example, the services sector, perhaps in completely new companies. the structural change that occurred when farmers and forestry workers went into manufacturing was relatively easy. now the change often entails manufacturing workers having to go into the services sector, a transition that may be more difficult. to the extent that the weak growth in employment is due to structural change in the swedish economy, from manufacturing jobs to services, there is reason to discuss how the functioning of the labour market can be improved and how the driving forces for new business creation can be strengthened. several proposals have been put forward in the public debate – among other things, there have been calls for a tax deduction to subsidise certain domestic services, as well as calls for a reduction in compensation levels to increase people ’ s willingness to take lower - paid jobs. other solutions being discussed are lower income taxes for low - income and middle - income employees, a reduction in employers ’ contributions and a cut in payroll taxes. these are important political issues, but issues that we at the riksbank do not have any obvious reason to take a stance

william c dudley : remarks at the cpmi ’ s 25th anniversary conference remarks by mr william c dudley, president and chief executive officer of the federal reserve bank of new york, at the committee on payments and market infrastructure ’ s 25th anniversary conference, bank for international settlements, basel, 30 june 2015. * * * we have three distinguished panelists in this opening session – claudio borio, the head of the monetary and economic department at the bank for international settlements ( bis ), william coen, the secretary general of the basel committee on banking supervision ( bcbs ) and masa kono, who is currently the vice - minister of international affairs at the japan financial services agency and who earlier chaired the international organization of securities commissions ( iosco ) during the development of the principles for financial market infrastructures ( pfmi ). they will offer their thoughts on how the role of the committee on payments and market infrastructure ( cpmi ) has changed and is likely to continue to evolve in its task of setting and helping implement global financial, operational and risk standards for the world ’ s key financial market infrastructures ( fmi ). before i turn to our panelists, let me offer some brief comments on the evolution of the cpmi. as i see it, there have been three broad complementary trends that have been important in influencing the evolution of the cpmi and have contributed to its increased importance over time. as always, what i have to say represents my own views and not necessarily those of the federal open market committee or the federal reserve system. 1 the first trend has been the development of a global financial system. this has increased financial system interdependencies and, hence, the importance of harmonizing standards across national regulatory regimes. it also has made it more important to avoid regulatory arbitrage and race to the bottom types of behavior that could weaken the resiliency and robustness of the global financial market infrastructure. the second trend is the increasing importance of fmis within the financial system. as trading across a more complex array of instruments and products proliferates, and as more trades are centrally cleared, well - managed fmis play an increasingly important role within the financial system. the third trend stems directly from the first two. with the global financial system becoming more prominent and fmis playing a bigger role within this global financial system, it has become ever more essential that major fmis operate safely. when run well, they mitigate risk. but, run poorly, they