This trend must continue as we restructure our economy towards higher value-added activities, seek deeper skills, and undertake more pervasive digitalisation. Third, there is scope to increase productivity and efficiency in many domestic services jobs. Consider wages in four occupations (Plasterer, Childcare Worker, Baker, and Security Guard) across four countries (Singapore, Australia, US, UK). The slide shows the median wage in these occupations relative to the overall median wage in that country. In Singapore, the typical pay in these occupations range from 30-60% of the local median wage. In Australia, these occupations have wages much closer to the median wage. Wages in these occupations are also higher in the US and UK, though the pattern is slightly different across countries. There is scope to further professionalise these jobs in Singapore. In particular, to increase the skills content, leverage on technology, improve business processes, and raise the quality of output. This will enhance productivity and help to support higher wages in these occupations. 14 / 17  BIS central bankers' speeches  In fact, the professionalization of more of such so-called “rank-and-file” jobs in Singapore will help to strengthen and broaden the middle class, and make for a more equitable society. And Singapore can do this. We have good examples of jobs that have historically been perceived to be less skilled that have now been successfully upgraded. These jobs now command much relatively good wages, close to that seen in Australia, US, and UK, controlling for median incomes.
In total, the euro area generated a trade surplus of more than 1% of its GDP in 2012 compared with around zero in previous years. We expect this surplus to continue growing in the coming years. The speed and depth of the reforms underway in euro area economies is unprecedented. They have undertaken reforms in the areas most important for competitiveness, growth and the sustainability of public finances such as labour markets, products markets, social security, pension systems, etc. These reforms are a prerequisite for dynamic and sustainable growth in the future and they must be vigorously pursued. In addition to this very clear determination at the different national levels to reduce deficits and introduce the necessary reforms, Europe has equipped itself with a new disciplinary framework. The Heads of State signed a new fiscal compact over a year ago that fixes very strict rules and gives very extensive powers to the European Commission to assess the  2  BIS central bankers’ speeches  compliance of Member States. This new compact goes hand in hand with the introduction of rules for monitoring macroeconomic imbalances. It is important to understand what these institutional advances represent: in effect, they represent a new Treaty creating very strong commitments for the States via rules that are far better calibrated and far more binding than those in place when European monetary union began. 3. Monetary Union is to be enhanced with a banking union.