Exemptions from social security contributions for the workers affected have been approved, depending on the form and duration of the procedure, and workers subject to the sectoral mechanism will be required to follow a reskilling plan that includes training. Such arrangements have proven effective during eminently temporary shocks, such as the health crisis, suggesting that they could be equally valuable in temporary macroeconomic situations. However, they would not necessarily be as appropriate in other types of more structural processes, such as those that will foreseeably have to be addressed by the Spanish economy in the years ahead; in such instances, the sectoral form of the RED mechanism would be activated. Consequently, looking forward, it would be advisable to assess how effective this form of the RED mechanism is, compared with other mechanisms currently conceived for permanent restructurings (e.g. redundancy programmes), in terms of boosting the employability of the workers affected and maintaining their human capital, but also in smoothing the necessary cross-firm and cross-sectoral reallocation of resources. (ii) The challenge of training and increasing human capital Increasing the educational attainment level of workers and employers is also crucial to reducing structural unemployment, boosting productivity and fostering the creation of higher quality jobs. In recent decades, the Spanish population’s level of educational attainment has improved considerably. However, Spain is still behind its European peers in this respect. By way of illustration, in 2020 Spain had the highest early school leavers’ rate in the EU.

Chart: Important considerations for the future The purpose of investment management as defined by the political authorities sets a clear aim for the long-term return. To illustrate this point, I have chosen again to look to Canada, more specifically to the province of Alberta. Alberta has earned considerable oil and gas revenues since the 1970s. In 1976, the provincial government established the Alberta Heritage Savings 5/7  BIS central bankers' speeches  Trust Fund (AHSTF), where these revenues were invested. Chart: Alberta Heritage Savings Trust Fund At the outset, the AHSTF had a number of objectives. In addition to saving for the long term, the AHSTF was also tasked with strengthening and diversifying the economy of Alberta and improving the quality of life of Albertans. Individually, these are admirable aims, but as an overall objective for investment management, they are more demanding. Retrospectively, it is difficult to measure the fund’s contribution to a more diversified economy or to an improved quality of life of residents. Such purposes may also conflict with a desire to save for the future. Alberta has chosen to adjust course along the way. The management objective of the fund is now to maximise long-term returns at a prudent level of risk. Chart: Important considerations for the future The Central Bank Law Commission advises against multiple objectives for the management of the GPFG. The Commission underscores that a change of manager for the GPFG should not occur if this entails that other considerations overshadow the aim of maximising long-term returns.