[RÉUNION] Labour market: unemployment falls 5% year-on-year, an unprecedented dynamic

Unemployment in Reunion fell 5% year-on-year in Q1 2026, with -8.1% for fully unemployed (category A). A positive signal that bucks the national trend.

La Réunion — Business.OI
Photo : Balázs Gábor / Pexels

Reunion's labour market delivered an unexpected performance in the first quarter of 2026. According to data published by the DEETS (the island's economic and employment authority), registrations at France Travail (categories A to E) fell by 5.0% year-on-year, representing 7,650 fewer people. Category A — jobseekers with no activity at all — posted an even sharper decline of 8.1% over twelve months.

In Q1 2026, there were 150,010 jobseekers actively required to look for work in Reunion (categories A, B, C), of whom 110,520 were entirely unemployed (category A). Over the quarter, category A-E registrations fell by 4.3%, meaning 6,970 fewer people in category A. These results contrast sharply with the national picture: in metropolitan France (excluding Mayotte), declines are far more modest at -0.3% for categories A-E and -1.2% for category A alone.

New tracking indicators since January 2025

France Travail now includes two new monitoring categories: 17,882 people on a social pathway (category F) and 20,611 awaiting orientation (category G). These data points broaden the picture of Reunion's labour market, historically characterised by a structurally high unemployment rate of around 18-20%.

Why it matters

While Reunion remains one of France's departments with the highest unemployment, an 8.1% annual drop in category A is a strong positive signal. The combination of public investment by the Departmental Council (1.3 billion euros approved in 2026) and local business momentum appears to be producing tangible results. The key question is whether this trend will be confirmed in coming quarters, against a national backdrop of rising unemployment at 8.1%.

Sources: DEETS Reunion, Reunion Prospective Competences — Q1 2026

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