Grand Est Economic Outlook in Mid-2026: Fragility Amid Sectoral Shifts

The Grand Est region is experiencing a fragile economic situation in mid-2026, primarily due to significant downturns in its industrial and construction sectors. The latest CESER report reveals that the region lost nearly 4,800 industrial jobs over the past year—three times the national average—and the construction sector shed 1,377 jobs in 2025, totaling 6,000 losses over three years. Despite this, the service sector displayed resilience, adding 2,890 jobs, a 0.4% gain in 2025.

Unemployment dropped to 7.5%, the lowest level in five years, though certain areas like Charleville-Mézières and Troyes saw rising unemployment, and long-term joblessness increased while youth unemployment stabilized. Remarkably, the region set a record for business creation with almost 20,000 companies started in the first quarter of 2026, pushing annual figures beyond 70,000, though two-thirds of these are micro-enterprises with uncertain longevity.

Exports grew by 4.7%, fueled by agriculture and agro-food sectors, and tourism rebounded to pre-pandemic levels, with a 1.5% increase in overnight stays, especially from foreign visitors.

In neighboring Lozère, SELO reported a mixed 2025 with tourism revenue declining by 2.22% due to fewer visitors and adverse weather, affecting a sector that represents nearly 63% of its income. Despite these challenges, SELO’s revenue rose slightly by 1.5%, supported by real estate leasing to businesses, with initiatives underway to attract new enterprises and renovate 7,000 local homes to meet standards.

Jean-Paul Nollet, head of the CESER study group, cautioned about company finances under strain and limited hiring prospects, underscoring the region’s economic fragility despite pockets of growth and recovery.