The Outer Hebrides Economy
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The Outer Hebrides economy is characterised by a large number of small enterprises and a small number of key private sector employers. In 2010 there were more than 1,000 enterprises in the Outer Hebrides employing over 10,000 people, 10% of whom were self employed; 80% of employees worked for businesses employing less than 50 people; and the average unemployment rate was between 4-6%.
The female dominated sector of public administration, education and health is the largest employment sector, accounting for over 40% of jobs. Peripherality, insularity, and sparseness of population create economic challenges in the area, although the region enjoys comparative advantage in the natural resource and food and drink sectors of the economy.
Scotland's economic output rose between 2003 and 2007 and this trend was also evident in the Outer Hebrides where increases were driven by the public and distribution sectors - the proportion of public sector contribution increased from 36% to 40% over that period. Other growth sectors were construction and distribution and transport, while some key sectors such as production and agriculture/fishing declined slightly.
The island's economy has been somewhat buffered from the recent global recession by a reliance on public sector funding, but planned cuts in public sector spending are already impacting on the economy in 2015 with further cuts to follow.
The female dominated sector of public administration, education and health is the largest employment sector, accounting for over 40% of jobs. Peripherality, insularity, and sparseness of population create economic challenges in the area, although the region enjoys comparative advantage in the natural resource and food and drink sectors of the economy.
Scotland's economic output rose between 2003 and 2007 and this trend was also evident in the Outer Hebrides where increases were driven by the public and distribution sectors - the proportion of public sector contribution increased from 36% to 40% over that period. Other growth sectors were construction and distribution and transport, while some key sectors such as production and agriculture/fishing declined slightly.
The island's economy has been somewhat buffered from the recent global recession by a reliance on public sector funding, but planned cuts in public sector spending are already impacting on the economy in 2015 with further cuts to follow.