in general, these trends mean that the demand for unskilled workers in advanced economies is falling relative to that for skilled workers. some estimates show that by the end of this decade, there will be a shortage of 18 million skilled workers and a surplus of 35 million unskilled workers across advanced countries. 2 these broad shifts in the demand for and supply of labour are contributing to rising inequality. over the past 20 - plus years, incomes in canada have increased nearly twice as fast for earners in the top 10 per cent as for those in the lowest 10 per cent. the share of the top 1 per cent is now the third highest among member - countries of the organization for economic co - operation and development ( oecd ) after the united states and the united kingdom. 3 the last time inequality in the united states was this severe was during the 1920s. moreover, labour ’ s share of national income is now at its lowest level in half a century across most advanced economies, including canada. when income inequality is measured using the gini coefficient, the most widely - used metric of income inequality, canada falls in the middle of oecd countries. we all need to recognise that the durable, high - paying manufacturing jobs of the future will be located in companies that invest to equip and train their workers and that are fully engaged in the global economy. macroeconomic context a strategy to grow good jobs in this environment must also take into account the global economic transformation currently under way. it starts by recognising the limits of relying on our home market. in the immediate aftermath of the crisis, the broad economic strategy in canada has been to grow domestic demand and to encourage canadian businesses to retool and reorient to the new global economy. stimulative monetary and fiscal policies proved highly effective in supporting a robust growth in domestic demand, particularly household expenditures. for example, after falling almost 20 per cent in the recession, canadian auto sales rebounded strongly and now are slightly less than 4 per cent above their pre - recession level. as effective as it has been, the limits of this growth model are becoming clear. in particular, we cannot grow indefinitely by relying on canadian households increasing their borrowing relative to income. in the decade leading up to the recession, canadians tapped the wealth in their homes to finance up to one - fifth of consumption growth. housing activity is now near a record share of gdp, and there are increasing signs of overbuilding and overvaluation in

off from your description, ken, of having “ no money in the vault ” to back up their loans. 1 in response, international regulators have increased the minimum amount of capital banks must hold by about five times and are making the largest, most complex firms hold even more. in addition, we have added a safety belt imported from canada with a simple, but effective, leverage standard. this protects the system from risks we think are low but in fact are not. canadian auto workers ( cwa ) president ken lewenza speech to the caw council, p. 6, december 2, 2011. bis central bankers ’ speeches ending too - big - to - fail these measures have lowered the probability of failure, but since failures will still happen, their impact must be reduced, which is one of the reasons to focus on ending “ too - big - to - fail. ” we must address, once and for all, the unfairness of a system that privatises gains and socialises losses. by restoring capitalism to the capitalists, discipline in the system will increase and, with time, systemic risks will be reduced. in addition, the knowledge that major firms in markets far away can fail, without meaningful consequences at home, will restore confidence in an open global system and allow ken and all of us to focus on our day jobs. to ensure that bondholders, shareholders and management – rather than taxpayers – bear the brunt of losses, all fsb member countries have committed to have in place a bail - in authority and will have specific plans by the end of this year to recover or, if necessary, resolve these firms. the framework for systemic institutions is now being extended to domestic banks, global insurers, and key shadow banks, such as hedge funds. when implemented, greater supervisory intensity and higher loss absorbency will ensure that the financial system is never again beholden to the fate of a single firm or group of firms. creating continuously open markets an important element of ending too - big - to - fail is ensuring that key markets can withstand the failure of firms. creating continuously open core markets requires changes to the plumbing of derivative and repo markets, along with better data and tracking of exposures. moving from shadow banking to market - based finance finally, the fsb is working to strengthen the oversight and regulation of shadow banking so that it is a source of competition ( to promote efficiency ) and diversity ( to promote resilience ) to the regulated sector. this will require