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.