Factfile - Economy
Introduction
Specific local research (link to 2003 Regional Accounts) indicates that the economy of the Outer Hebrides has grown since previous detailed assessment in 1988/89 and 1997, however, it still lags behind neighbouring areas such as Shetland, Orkney and the wider Highlands and Islands, in addition to other regions within the UK. The lack of indigenous resources and a reliance on importing is confirmed by an estimated trade deficit of some £163.4 million.
Private sector investment in the Outer Hebrides is limited and there is continuing need for public sector intervention either from the UK government or the wider European Commission to help assist economic development and social improvement on the islands.
The Highlands and Islands is a Statistical Effect Region and it is anticipated that it will continue to receive EU Structural Funds from 2014-2020 as a Transition Region which is an area with 75-90% of EU27 average GDP. Click here for a current Economic Profile of the Outer Hebrides.
Sectors
The 2001 census found that the proportion of employment in the fishing (6%), construction (11%), transport (8%) and the public sector, including education and healthcare (32%) was of greater importance to the Outer Hebrides compared to Scotland in 2003. This difference is particularly marked in the fishing industry, construction and the public sector where the national proportions are considerably lower at 0.3%, 7% and 27% respectively.
Industry of Employment |
No. of Residents |
Outer Hebrides % |
Scotland % |
|---|---|---|---|
Public sector* |
3,658 |
31.8 |
26.8 |
Retail, trade and repairs |
1,344 |
11.7 |
14.4 |
Construction |
1,216 |
10.5 |
7.5 |
Manufacturing |
1,039 |
9.0 |
13.2 |
Finance and business |
1,027 |
8.9 |
15.8 |
Transport and communications |
931 |
8.1 |
6.7 |
Fishing |
666 |
5.8 |
0.3 |
Hotels and restaurants |
666 |
5.8 |
5.7 |
Other |
555 |
4.8 |
5.3 |
Agriculture and Forestry |
175 |
1.5 |
2.1 |
Mining and quarrying |
125 |
1.1 |
1.2 |
Electricity, gas and water |
104 |
1.0 |
1.0 |
|
11,511 |
100.0 |
100.0 |
* Public sector includes health, social work, education and defence.
