In Q1 2026, the unemployment rate in Réunion stood at 18% of the active population, up 2 percentage points year-on-year. But behind this concerning figure, total salaried employment is holding steady, driven by the private sector and non-market services, according to INSEE Conjoncture Réunion (No. 42, July 2026).
Rising unemployment — but well below peak levels
Réunion's Q1 2026 unemployment rate stands at 18%, a 2-point increase from Q1 2025. While high compared to metropolitan France (which recorded 8.1% at the start of 2026 according to INSEE), this figure remains well below the historical peak of 24% recorded at end-2018. The island continues to face a structural labour market challenge, but the data does not signal an acute deterioration.
294,700 employees: employment holds
At the end of March 2026, Réunion had 294,700 employees — stable compared to Q4 2025 but +0.4% year-on-year. The private sector is driving this modest growth: +0.6% year-on-year. The public sector remains stable. Among sectoral trends, non-market services grew +0.6% over the quarter and +1.1% annually. Temporary work rebounded +2.0% over the quarter. Commerce rose +0.4%, and hospitality remains quasi-stable (+0.1%).
Construction and business services: the weak spots
The construction sector continues to contract (-0.4% over the quarter, -0.8% annually), hit by a slowdown in public investment and rising material costs. Business services fell more sharply (-1.4% over the quarter). Apprenticeship, which had been a powerful driver of inclusion in recent years, recorded a worrying -6.0% annual decline, reversing a positive trend observed since 2020.
Why it matters
Réunion is the Indian Ocean territory with the most structurally strained labour market. The Q1 2026 rise in unemployment comes amid a global economic slowdown and budget pressure on inclusion programmes. For public decision-makers and economic actors on the island, the resilience of private salaried employment (+0.6%) is a signal to build on. The sharp decline in apprenticeship is a medium-term challenge that businesses and institutions will need to address urgently in the second half of 2026.
Source: INSEE Conjoncture Réunion No. 42, July 2026