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# [RÉUNION] Employment: Unemployment Crosses 18% in First Quarter 2026
- URL: https://businessoi.media/en/la-reunion-emploi-le-chomage-franchit-le-seuil-de-18-au-premier-trimestre-2026-en/
- Published: 2026-09-07T02:48:00.000Z
- Updated: 2026-09-07T02:48:00.000Z
- Description: Réunion: 18% unemployment in Q1 2026, up 2 points year-on-year. 294,700 employees but construction and business services declining. The trend is expected to continue through end-2026.
- Author: Emmanuel TAOCHY
- Tags: La Réunion, emploi, Économie, Revue matinale, #en

**Réunion's labour market is going through a difficult period. In the first quarter of 2026, the island's unemployment rate reached 18% of the active population, up 2 points year-on-year. A level that remains below the peak recorded in late 2018, but which confirms the structural fragility of Réunion's economy in the face of national turbulence and declining public investment.**

## 294,700 Employees: A Deceptive Stability

In March 2026, Réunion counted **294,700 salaried workers**, stable compared to the previous quarter and slightly up 0.4% year-on-year. A stability that, at first glance, might reassure — but which masks contrasting sectoral dynamics and a growing number of discouraged inactive people who have dropped out of unemployment statistics.

## Sectors Under Pressure

Construction lost **100 jobs** (-0.4%) in the first quarter alone, while business services shed **300 positions** (-1.4%). These declines reflect the impact of national budget cuts, a slowdown in local public procurement, and reduced private orders in a context of still-elevated interest rates.

## Pockets of Resistance

On the other side, non-market services created **1,400 additional jobs** over the year, and temporary employment grew by 100 positions quarterly. Promising sectors, but whose momentum remains insufficient to offset losses and absorb new entrants into the labour market.

## Why It Matters

The rise in unemployment in Réunion is not explained solely by local factors. Metropolitan France itself records **8.1% unemployment** (+0.7 points year-on-year), and national forecasts anticipate a continued upward trend through the end of 2026\. For Réunion's decision-makers, the challenge is twofold: protect existing private sector employment while supporting the economy's transition towards the sectors of the future — digital, sustainable tourism, blue economy. Without an offensive, differentiated employment strategy, the risk is that the island settles durably into structural mass unemployment.

*Sources: INSEE, IEDOM, Imazpress, Q1 2026 data.*