High unemployment and low living standards plague Mayotte, with a population of approximately 321,000. The region faces a staggering 37% unemployment rate, significantly higher than mainland France’s 7.5%. Economic struggles are evident, as the median income is seven times lower than the national average, and 77% live below the poverty line. Despite a rise in micro-entrepreneurship, overall business growth remains stagnant amid challenges like rising credit costs and social unrest, impacting livelihoods and economic stability.
High Unemployment and Low Living Standards in Mayotte
Demographic Insights
As of January 1, 2024, the population of Mayotte, a picturesque archipelago in the Indian Ocean, is estimated to be around 321,000 according to data from Insee.
In 2021, Mayotte adopted a census methodology similar to mainland France, conducting annual surveys across different regions each year, tailored to the unique characteristics of the island. Prior to each survey, detailed mapping identifies all types of housing, whether sturdy structures or temporary sheet metal homes (bangas), as noted by the National Institute of Statistics (Insee) in their January 2023 blog.
The fertility rate in Mayotte is significantly higher than the national average, with an impressive figure of 4.5 children per woman. The demographic is notably youthful, boasting an average age of just 23 years, in stark contrast to the 41 years average age found in metropolitan France.
In 2023, it was reported that three-quarters of newborns had foreign mothers, predominantly from Comoros, yet more than half had at least one French parent.
Economic Overview: GDP and Living Conditions
According to Insee, the median standard of living for Mayotte residents is alarmingly ‘seven times lower’ than the national average. Data from 2018 reveals that half of the population earns less than €3,140 annually, compared to €25,210 in Île-de-France and €10,990 in Guyana.
Due to extensive migration, a significant portion of the population lives in poverty, with 77% falling below the national poverty line—five times the rate seen in mainland France.
Mayotte’s Gross Domestic Product (GDP) stands at €3.1 billion, marking it as the least wealthy French department when adjusted for population size, with GDP per capita nearly four times lower than the national figure.
The informal nature of the local economy contributes to the department’s low productivity, as highlighted by Insee. Additionally, consumer prices saw a rise of 1.9% between October 2023 and October 2024, exceeding the national average increase of 1.2%.
Labor Market Challenges
The commercial sectors, including trade, transport, hospitality, and real estate, remain underdeveloped in Mayotte, while the non-commercial tertiary sector, encompassing public administration, education, health, and social services, accounts for a larger share of employment compared to mainland France, as per 2022 Insee data.
While Mayotte is not included in the national unemployment statistics published quarterly, an annual ’employment survey’ is dedicated to the region.
In 2023, approximately 29,000 individuals were classified as unemployed according to ILO standards, reflecting a staggering unemployment rate of 37% among the active population. In contrast, the unemployment rate for France (excluding Mayotte) was 7.5% in the final quarter of 2023.
Characterized as the overseas department most severely impacted by unemployment, Mayotte has seen a rise of 7 percentage points in its unemployment rate since the end of the health crisis, diverging from national trends, as summarized by Insee.
Business Landscape
In 2023, the rate of new business formations saw little growth, although micro-entrepreneurship thrived, increasing by 19.7%, according to Insee.
The post-Covid economic momentum experienced by the island has ‘slowly diminished’ throughout 2023, as noted by Iédom, the Bank of France’s representative in overseas territories. This year has been described as ‘turbulent,’ marked by various challenges such as rising credit costs, a ‘security crisis,’ and the controversial security operation dubbed ‘Wuambushu,’ alongside water shortages.
A 2023 survey conducted by the Chamber of Commerce and Industry (CCI) of Mayotte revealed that 52% of 254 entrepreneurs experienced a ‘very significant’ impact on their revenues due to these ongoing crises.
In the first quarter of 2024, economic activities in Mayotte were further disrupted by a 45-day social movement causing roadblocks, leading many businesses to halt operations due to shortages of goods and raw materials, significantly affecting supply and consumption.