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The poverty trap

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Poverty remains very high in Reunion, despite its reduction in recent years, according to INSEE. From 2015 to 2018, about 35% of adults were poor in a monetary sense, a share almost three times higher than in mainland France. Among poor adults in 2015, 58% were still in 2018 ; this rate was only 42% in mainland France. Persistent poverty is four times higher in Reunion than in France, where it affects 5% of adults. Falling into poverty is more common on the island than elsewhere : from one year to the next, 6% of adults fall below the monetary poverty line compared to 4% in mainland France. However, there are more exits from poverty (7 %) that the entries, whereas elsewhere entries and exits compensate each other. The poverty rate is therefore falling in Reunion, by 3 points between 2015 and 2019, to reach 37% of the entire population in 2019 (adults and children alike). Exiting poverty is three times more frequent when one finds or regains employment. Nevertheless, tempers INSEE, low-paid or part-time jobs do not always lead to a sufficient increase in living standards to escape poverty : 40% of poor people who find work remain poor.

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