Argyll and the Islands is best viewed not as a single economy but many micro-economies, each with its own characteristics.
Around 18.3 per cent of the population (13,000 people) live in areas designated 'fragile' by Highlands and Islands Enterprise. A similar number can be found in 'employment deficit' areas.
We have no single dominant population centre and a high level of economic, social and geographic diversity. Its 26 inhabited islands and three peninsulas include some of the most fragile rural communities in Scotland. At the same time, many inhabitants commute to jobs in and around the Glasgow area.
The population of Argyll and the Islands was 70,543 in 2009, which is an increase of 0.9% since 2001. This compares to a 3.1% increase overall in the Highlands and Islands and a 2.5% increase in Scotland.
Over the past three years, unemployment in Argyll and the Islands has been higher than the Highlands and Islands average but generally lower than in Scotland. The Argyll and the Islands area has a large tourism sector, which was further bolstered in 2009 as UK residents holidayed at home due to the recession.
The most recent Gross Value Added (GVA) figures for 2007 state that GVA per full-time equivalent employee was higher in Argyll and Bute than in the Highlands and Islands for construction and services, but lower for manufacturing.
Public administration, education and health is the largest employment sector, accounting for over 30% of jobs in 2008.
Agriculture and fishing; Distribution, hotels and restaurants; and Public administration, education and health account for a greater proportion of employees than in the Highlands and Islands.
The majority of workers (65%) were employed by companies with 49 or fewer employees in 2008. Self employment in Argyll and the Islands area stood at 12.2% of the working population in 2008, higher than the Highlands and Islands (10.5%) and Scotland (7.7%). This demonstrates the dominance of employment within small and micro businesses in Argyll and the Islands.
In 2008/09, educational attainment levels were higher in Argyll and the Islands than in Scotland by the end of S4, and similar by the end of S6.
House prices have been rising in recent years. The median house price in Argyll and the Islands in 2008 was £100,000 compared to £117,750 in the Highlands and Islands and £114,500 in Scotland.
Further information on the economy of Argyll and the Islands is available in our area profile report.
