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# [RÉUNION] Unemployment rises to 19% in Q2 2026, more than double the French national rate
- URL: https://businessoi.media/en/la-reunion-chomage-en-hausse-19-de-la-population-active-au-t2-2026-soit-plus-du-double-de-la-metropole-en/
- Published: 2026-10-11T08:46:10.000Z
- Updated: 2026-10-11T08:46:10.000Z
- Description: La Réunion's unemployment rate hit 19% in Q2 2026, up 3 points year-on-year and more than double France's national figure of 8.3%. Corporate insolvencies surged +18% over the past year.
- Author: Emmanuel TAOCHY
- Tags: La Réunion, emploi, Flash de mi-journée, #en

According to the latest figures from **INSEE** (France's national statistics institute), published on 30 September 2026, La Réunion's unemployment rate reached **19% of the active population** in the second quarter of 2026, up **3 percentage points year-on-year**. By comparison, mainland France stands at 8.3% — less than half that rate.

## A labour market under strain

The island counted **293,900 salaried employees** at the end of June 2026, down 0.2% over the quarter. Beneath the headline figure, the picture is mixed: the decline was driven mainly by a fall in **public sector employment**, which shed around **1,000 positions** in three months (-0.9%). Business services (-0.6%) and construction (-0.4%) also contracted.

Conversely, some sectors held up well. **Information and communications** grew 4.3%, adding around 200 jobs. Retail trade (+0.6%) and accommodation and catering, buoyed by hotel occupancy rising **6% year-on-year**, proved more resilient.

## Businesses under pressure

The island's business fabric also flashed warning signs. New business registrations fell **5% in Q2** (3,960 created), while corporate insolvencies surged **+18% year-on-year** — 1,240 proceedings opened between July 2025 and June 2026 — versus +5% nationally. The services and retail sectors were particularly hard hit.

## Some encouraging signals

INSEE notes, however, that Réunion's economy is performing better than the national average on several metrics. Paid working hours rose **0.4% year-on-year**, while they fell 0.7% in mainland France. Inflation also remained more subdued: **+1.5% year-on-year** in June 2026, versus +1.8% nationally.

This paradox — high unemployment yet relatively resilient activity indicators — reflects the island's specific labour market structure, characterised by a heavy public-sector footprint and a steadily growing working-age population.

## Why it matters

A 19% unemployment rate places La Réunion among the most affected French regions, far ahead of the national average. Rising corporate insolvencies and declining public sector employment signal growing vulnerability in the local jobs market, against a backdrop of national fiscal austerity. Decision-makers and investors should watch Q3 data closely, especially in the public sector and construction.

*Source: INSEE Conjoncture Réunion — report dated 30 September 2026*