Economy

1.  Key points

Argyll and Bute’s economy is predominantly service-based.  Our largest industry is Accommodation and Food Services, employing 13.9% of employees in Argyll and Bute, followed by Human Health and Social Work (12.5%), Public Administration and Defence (11.1%) and Wholesale and Retail Trade (11.1%) - Business Register and Employment Survey, 2024

The number of people claiming unemployment benefits in Argyll and Bute (2.5%, June 2026) tends to be lower than that of Scotland (3.1%, June 2026). As Argyll and Bute has a strong seasonal economy, this percentage tends to fluctuate throughout the year. 

2.  Industry

Because of the rural nature of the area, the pattern of employment in Argyll and Bute is different to the Scottish average.

The proportions of people working in the agriculture, forestry and fishing sectors and tourism-related activities are far higher than Scottish averages.  Proportions of employment in tourism, hotels and restaurants are higher in the more rural areas than in the urban areas. 

Figure 1: Percentage of Employees per Industry Group in Argyll and Bute, 2024 (ONS Business Register and Employment Survey)

Our largest industry is Accommodation and Food Services, employing 13.9% of employees in Argyll and Bute, followed by Human Health and Social Work (12.5%), Public Administration and Defence (11.1%) and Wholesale and Retail Trade (11.1%).

Economies with a high dependence on seasonal industries, such as tourism, agriculture, forestry and fishing, face many challenges. Workers may be presented with only a small window of time to make their income for the entire year. As a result, some people will take multiple jobs during the summer period to maximize their income.  Alternatively, workers look for other jobs when the “season” is over.  Many opt to commute to other areas to seek employment and reap the benefits of higher earnings.   These types of economies are unstable as the impact of the weather plays an important role in tourism, farming and fishing, and can make or break a season.

While tourism is an essential aspect of our the local economy, quantifying it’s impact is challenging.   Nonetheless, the following figures give some hint as to the contribution that tourism makes. 2025 draft STEAM data estimates tourism to have had an economic impact of £886.26m economic impact in 2025. STEAM also estimates there to have been 3.46 million visitors to Argyll and Bute during 2025.  

3. Employment

3.1  Economically Active and Inactive Populations

In 2026, there were 52,300 people of working age (aged 16 to 64) in Argyll and Bute. Of these, 38,000 people (70.9%) were economically active, compared with 77.7% across Scotland - ONS Annual Population Survey, April 2025 to March 2026 Economically active people are those who are either in employment or unemployed but actively seeking work and available to start within two weeks.

The remaining 29.1% of the working-age population were economically inactive, meaning they were not in employment and had not been seeking work in the previous four weeks and/or were unavailable to start work within the following two weeks. This compares with an economic inactivity rate of 22.3% across Scotland. Economically inactive groups include retired people, those looking after the family home, long-term sick individuals, and others not participating in the labour market.

Within Argyll and Bute, economic activity rates differ by gender, with 76.3% of men economically active compared with 65.2% of women. Both figures are below the Scottish averages of 80.7% for men and 74.9% for women.

Among the economically active population, most workers (59.0%) were employees. However, self-employment is a more significant feature of the local labour market than nationally, accounting for 9.9% of the working-age population compared with 7.5% across Scotland (ONS Annual Population Survey, March 2025 to April 2026).

Unemployment claimant rates in Argyll and Bute remain relatively low. In June 2026, 2.5% of residents claimed unemployment-related benefits, compared with 3.1% across Scotland. Reflecting the area's strong seasonal economy, claimant levels tend to fluctuate throughout the year.

3.2  Working patterns

The incidence of part-time working is higher in Argyll and Bute than across Scotland as a whole.  Part-time employment is affected by seasonal changes as many of these jobs are tourism-related.  There is also a higher than average rate of seasonal employment more generally within the council area.

 3.3  Occupations

According to the ONS Annual Population Survey (April 2025 to March 2026), Argyll and Bute has a higher proportion of managers, directors and senior officials than Scotland as a whole. Around 14.5% of the area's workforce falls within this occupational group, compared with the Scottish average of 9.0%. This may partly reflect the area's relatively high levels of self-employment, as owners of small businesses are often classified within this category.

Skilled trades also account for a larger share of employment in Argyll and Bute than in many other parts of Scotland. Around 12.4% of workers are employed in skilled trades occupations, a pattern that is influenced by the area's significant agricultural and land-based sectors. In contrast, only 3.4% of the workforce is employed as process, plant and machine operatives, reflecting the relatively small manufacturing sector within the local economy.

Occupational patterns vary across different parts of Argyll and Bute. In the Commuter Belt, the proportion of people employed in associate professional and technical occupations is particularly high. This is largely attributable to the presence of HM Naval Base Clyde at Faslane, where many service personnel are classified within this occupational group.

3.4  Income and Earnings

According to the Annual Survey of Hours and Earnings in 2025 the average full-time worker in Argyll and Bute earned a gross weekly pay of £725.80 per week, in comparison to a Scottish average of £775.60 per week. Male full-time workers earned a gross weekly pay of £784.50 in comparison to the Scottish average for full-time male workers of £812.80. Female full-time workers earned a gross weekly pay of £656.00 in comparison to the Scottish average for full-time female workers of £726.10. 

3.5  Unemployment and Employment Benefit Claim Rates

Levels of unemployment in Argyll and Bute are generally lower than the Scottish average. In June 2026, 2.5% of residents claimed unemployment-related benefits, compared with 3.1% across Scotland - ONS Claimant Count

Employment patterns within the area are strongly influenced by seasonality, particularly in sectors such as tourism, hospitality, and agriculture. As temporary and seasonal jobs come to an end during the winter months, unemployment levels and benefit claims tend to rise before falling again as economic activity increases in the spring and summer. Consequently, claimant rates in Argyll and Bute typically fluctuate more throughout the year than in areas with less seasonal labour markets.