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# [RÉUNION] Unemployment at 18% in Q1 2026: Réunion's Labour Market Under Pressure Despite Private Sector Resilience
- URL: https://businessoi.media/en/la-reunion-chomage-a-18-au-t1-2026-lemploi-reunionnais-sous-pression-malgre-un-secteur-prive-qui-resiste-en/
- Published: 2026-08-13T08:50:35.000Z
- Updated: 2026-08-13T08:50:35.000Z
- Description: Unemployment hits 18% in Réunion in Q1 2026, up +2 points year-on-year and double the metropolitan French rate. The private sector holds (+0.6%) but business creation slows by 11%.
- Author: Emmanuel TAOCHY
- Tags: La Réunion, emploi, Flash de mi-journée, #en

In Réunion, the unemployment rate reached 18% of the active population in Q1 2026, according to the latest INSEE data. That is two percentage points higher than a year ago — and more than twice the metropolitan French rate. Yet the headline figure masks some positive signals in the private sector.

## 18%: Twice the National Rate

The ILO unemployment rate stands at **18%** in Q1 2026 in Réunion, compared to **8.1%** in metropolitan France. Over one year, the rise is **+2 points** on the island, while the mainland posted only +0.7 points. Réunion nonetheless remains far from its 2018 peak, when unemployment was approaching 24%.

## A Two-Speed Labour Market

Total salaried employment reached **294,700 workers** at end-March 2026, stable over the quarter but up +0.4% over twelve months — slightly better than metropolitan France (-0.2%). The private sector is holding its own at +0.6% year-on-year. Among sector bright spots: temporary employment (+2.0%), trade (+0.4%) and hospitality (+0.1%).

Conversely, business services fell **\-1.4%** and construction -0.4% — two traditionally key sectors for the island.

## Business Creation Slows

In Q1 2026, the island recorded **4,190 business creations**, down 11% from the previous quarter. Business failures held at **1,150** over the period — part of a worrying upward trend since end-2024\. This entrepreneurial slowdown partly reflects tighter financing conditions and cautious household behaviour amid national economic uncertainty.

## Why It Matters

An 18% unemployment rate means that nearly one in five economically active Réunionnais is jobless. Beyond the social indicator, this is a central economic question: Réunion cannot fully benefit from regional investments (undersea cable, digitalisation, tourism) without resolving its structural gap between job creation and active population growth. The coming months will be crucial: the construction sector, currently in retreat, is expected to be a key driver of recovery by end-2026.

*Source: INSEE Conjoncture Réunion, Q1 2026 — published July 2026*