38% of Reunion Islanders live below the poverty line

In 2017, 38% of Reunionese individuals lived beneath the metropolitan poverty line. Since 2007, poverty has declined considerably, as has earnings inequality. Nevertheless, poverty stays a lot larger than in mainland France (14%). Certainly, the job deficit stays important on the island. That is notably the case in small rural communities, the place employment is scarce: a couple of inhabitant in two lives beneath the poverty line in Sainte-Rose, Cilaos, and Salazie. Nevertheless, having a job isn’t at all times sufficient to keep away from a state of affairs of poverty. Reunionese individuals have decrease incomes and are extremely depending on social help, which helps cut back poverty and earnings inequality.

In 2017, 38% of Réunion Islanders (334,300 individuals) dwell beneath the metropolitan poverty line. Thus, this poverty line is calculated in line with the distribution of metropolitan France's earnings, which quantities to 1,041 euros per 30 days and per consumption unit. Minors are notably affected: 115,500 dwell in poor households, half of them.

In Salazie, Cilaos and Sainte-Rose, greater than half of the inhabitants are poor

Poverty stays at a a lot larger degree than in mainland France (14%). It’s clearly extra marked than in essentially the most involved metropolitan area, Corsica (19%). Certainly, the shortage of jobs stays important in Reunion. In 2017, 47% of individuals of working age have a job, in comparison with 65% in mainland France.

Nevertheless, having a job isn’t at all times sufficient to keep away from a state of affairs of poverty. Thus, amongst households for which earnings from work (wages and earnings of the self-employed) is the principle declared useful resource, 21% are beneath the poverty line in 2017. That is twice as a lot as in mainland France. Poverty issues extra small rural communities (Determine 2): a couple of inhabitant in two in Sainte-Rose (53%), Cilaos (54%), and Salazie (58%). Conversely, La Possession is the least affected municipality (26%).

Discount in poverty fee and earnings inequality since 2007

The speed of financial poverty has however fallen sharply since 2007 (- 9 factors). Following the financial disaster of 2007-2008, the rebound in employment in 2010 and the dynamism of social advantages have actually helped to mitigate the consequences of the contraction in exercise.

The financial restoration from 2014 then results in a rebound in buying energy (+ 2.four% per yr between 2014 and 2017), from which the poorest households aren’t excluded. A 3rd of the drop within the poverty fee thus occurred throughout this era.
The poorest households additionally benefited extra from the introduction of the exercise bonus in 2016, changing the Lively Solidarity Earnings (RSA) and the employment bonus. On the finish of 2017, the exercise bonus issues 60,800 beneficiaries.

In 2017, residing requirements remained decrease in Réunion from one finish of the earnings scale to the opposite. Half of Reunionese dwell on lower than 1,250 euros per 30 days and UC, 28% lower than in mainland France. The incomes of the poorest are considerably decrease than in mainland France: the 10% of the poorest have at most 670 euros per 30 days and per CU towards 930 euros in metropolitan France. As for the wealthiest 10%, they’ve earnings nearer to that of their metropolitan counterparts: not less than 2,960 euros month-to-month per CU towards three,180 euros.

Inequalities thus stay important in Reunion: in 2017, essentially the most favored 20% obtain 45% of all of the earnings obtainable by UC, i.e. 5.6 occasions greater than essentially the most modest 20%. In mainland France, this distinction is smaller (four.three occasions)
Nevertheless, earnings inequality has declined sharply on the island over the previous ten years. In 2007, the ratio between the earnings of the wealthiest 20% and that of the poorest 20% was 7.