Labour market data for the first quarter of 2026 in Réunion has come in better than expected. The number of jobseekers without any activity (category A) fell 8.1% year-on-year and 5.9% on the quarter — a performance significantly stronger than mainland France, which recorded only a 1.2% decline in category A. Deep structural challenges nevertheless remain.
A Clear Improvement in the Numbers
According to data published on April 28, 2026 by Réunion's DEETS (Direction of Economy, Employment, Labour and Social Solidarity), 110,520 people were registered with France Travail in category A during Q1 2026, down from approximately 120,000 a year earlier. The quarter-on-quarter drop of 6,970 people is among the sharpest declines recorded in recent years. Across all active categories (A, B and C), total registrations stood at 150,010, down 4.3% on the quarter.
Outperforming Mainland France
Where metropolitan France (excluding Mayotte) recorded only a 0.3% quarterly decline in total registrations and a 1.2% fall in category A, Réunion performed four to five times better. This positive divergence is partly explained by the strength of certain local sectors — notably construction, retail, and business services — as well as demographic effects: the ageing of Réunion's population is mechanically pushing more people out of the active labour force.
170,000 Registered: The Challenge Remains Immense
Despite the progress, Réunion remains one of France's territories with the highest unemployment rates. In total, 170,080 people were registered with France Travail across all categories (A to E) in Q1 2026. Beyond the 150,010 «active» jobseekers sit an additional 17,882 people in social support pathways (category F) and 20,611 awaiting guidance (category G) — two new categories introduced in January 2025 that reveal the depth of labour market exclusion on the island.
Salaried Employment Holds Steady, Under Pressure
At the same time, salaried employment is broadly stable, after several quarters of modest gains. The most dynamic sectors remain construction (driven by major ongoing projects), healthcare, and social services. Industry and retail remain under pressure, in an environment where consumer purchasing power is squeezed by the fuel price hikes recorded from September 1, 2026.
Why It Matters
The decline in unemployment in Réunion is an encouraging signal for the local economic ecosystem. It must, however, be read with care: part of the fall reflects demographic trends rather than structural improvement. The real challenges — youth integration, workforce qualification, and development of the private sector — remain unresolved. For policymakers and investors alike, Réunion's labour market is a key indicator to watch closely.
Sources: DEETS Réunion, "Labour Market Figures Q1 2026," published April 28, 2026.