> ## Content Index
> Fetch the complete content index at: https://businessoi.media/llms.txt
> Use this file to discover other available public pages before exploring further.

# [RÉUNION] Employment: unemployment rebounds to 18% in Q1 2026, double the French national rate
- URL: https://businessoi.media/en/la-reunion-emploi-le-chomage-rebondit-a-18-au-premier-trimestre-2026-soit-le-double-de-la-france-en/
- Published: 2026-08-21T02:43:55.000Z
- Updated: 2026-08-21T02:43:55.000Z
- Description: 18% unemployment in Réunion in Q1 2026 vs 8.1% in France: a historic gap. Salaried employment holds, but shrinking subsidised contracts and a fragile construction sector weigh heavily.
- Author: Emmanuel TAOCHY
- Tags: La Réunion, emploi, Économie, Revue matinale, #en

The unemployment rate in Réunion reached 18% of the active population in Q1 2026, up 2 percentage points year-on-year, according to INSEE data published on July 2, 2026\. The gap with mainland France — where the rate stands at 8.1% — has widened to one of its highest levels in years.

## A two-speed labour market

Salaried employment remains stable at 294,700 positions on the island, with annual growth of +0.4% — slightly better than the -0.2% recorded nationally. Yet this stability contrasts with the surge in the broader halo of unemployment: more than 209,000 Réunionnais are registered with France Travail, a sign that the boundary between employment, under-employment and inactivity remains blurred.

## Construction declining, hospitality holding on

By sector, construction fell 0.4% (around 100 jobs lost) and business services dropped 1.4% (300 positions), hit by a national cut of 2,000 subsidised employment contracts on the island. Conversely, hotels and restaurants posted solid growth of +2.3% year-on-year, driven by tourism activity, while retail gained 200 jobs and temporary work grew 2.0%.

Building permits, meanwhile, jumped 14% despite the construction slump — a sign that projects are in the pipeline and sector employment could recover by 2027.

## Why it matters

At 18%, Réunion faces structural unemployment that weighs on local consumption and business attractiveness. The trend is concerning: if the reduction in subsidised contracts is not offset by stronger training and job-insertion programmes, the risk of lasting social fabric deterioration is real. Q2 2026 results, expected in October, will be closely watched.

*Source: INSEE Conjoncture Réunion no. 42 (Q1 2026 data, published July 2026).*