Réunion's Regional Economic and Social Council (CESER) is sounding the alarm: PEC subsidised employment contracts are collapsing from 12,000 to 4,000 between 2024 and 2026, while social support needs are rising sharply. A 'scissors effect' that is undermining an already stretched employment integration system.
Figures that demand attention
The cuts are stark and well documented. PEC (Parcours Emploi Compétences) subsidised contracts fall from 12,000 in 2024 to 10,000 in 2025, then 4,000 in 2026 — a reduction of 67% in two years. Green jobs contracts are cut from 700 to just 250. At the same time, the State's contribution to wage costs drops from 50% to 40%, and contract duration is capped at 6 months.
The Regional Programme for Integration and Competitiveness (PRIC) is losing approximately €10 million in funding, gutting vocational training schemes at the very moment they are most needed.
A fragile social fabric
These cuts come against a particularly tense social backdrop. Réunion has more than 90,000 recipients of the RSA (minimum income support). Among 15-29 year-olds, 26% are NEET — not in employment, education or training — a rate that far exceeds national averages. Educational attainment remains structurally low: only 22.3% of people in Réunion hold a higher education qualification, compared with 44% in mainland France. Illiteracy affects 17% of adults — almost double the French average.
Against this reality, reducing subsidised contracts does more than trim a budget line — it removes a safety net from thousands of people who have no other pathway into employment.
The scissors effect: more need, fewer resources
The CESER describes a relentless mechanism: on one side, social support needs are growing under the pressure of rising precarity. On the other, public budgets are shrinking. The two curves intersect — hence the scissors metaphor — creating a gap that neither private businesses nor local authorities can fill in the short term.
For Réunion's businesses, this signal has a concrete implication: pressure on the available skills pool will intensify in low-qualification sectors that are already stretched. Construction, retail, hospitality and personal services are on the front line.
Why this matters
The stakes go beyond social policy. If Réunion fails to upskill a significant proportion of its youth, the island risks missing the digital and ecological transition — two sectors that will determine its competitiveness for the next 20 years. The message to social partners and institutions is clear: alternative mechanisms must be found before the scissors effect becomes irreversible.
Sources: CESER de La Réunion, Journal.re, Zinfos974, INSEE Regional Economic Outlook Q1 2026.