Crofting is still important, but although there are about 2,000 crofts on Skye only 100 or so are large enough to enable a crofter to earn a livelihood entirely from the land. Cod and herring stocks have declined but commercial fishing remains important, especially fish farming of salmon and shellfish such as scampi. The west coast of Scotland has a considerable renewable energy potential and the Isle of Skye Renewables Co-op has recently bought a stake in the Ben Aketil wind farm near Dunvegan. The unemployment rate in the area tends to be higher than that for the Highlands as a whole, and is seasonal in nature. The population is growing and in common with many other scenic rural areas in Scotland, significant increases are expected in the percentage of the population aged 45 to 64 years.

Skye is linked to the mainland by the Skye Bridge, while ferries sail from Armadale on the island to Mallaig, and from Kylerhea to Glenelg. Ferries also run from Uig to Tarbert on Harris and Lochmaddy on North Uist, and from Sconser to Raasay.

The Skye Bridge, linking Skye with the mainland of Scotland, opened in 1995 under a private finance initiative. The high tolls charged (£5.70 each way for summer visitors) met with widespread opposition, spearheaded by the pressure group SKAT (Skye and Kyle Against Tolls). On 21 December 2004 it was announced that the Scottish Executive had purchased the bridge from its owners and the tolls were immediately removed.

Bus services run to Inverness and Glasgow, and there are local services on the island, mainly starting from Portree or Broadford. Train services run from Kyle of Lochalsh at the mainland end of the Skye Bridge to Inverness, as well as from Glasgow to Mallaig from where the ferry can be caught to Armadale. There is also a small aerodrome at Ashaig near Broadford, which is used exclusively by private aircraft.

The A87 trunk road traverses the island from the Skye Bridge to Uig, linking most of the major settlements. Many of the island's roads have been widened in the past forty years, but there are still substantial sections of single track road.

Students of Scottish Gaelic travel from all over the world to attend Sabhal Mòr Ostaig, a Scottish Gaelic college based in Sleat.

In addition to members of the Church of Scotland and a smaller number of Roman Catholics many residents of Skye belong to the Free Church of Scotland, known for its strict observance of the Sabbath.

Shinty is a highly popular sport played throughout the island and Portree-based Skye Camanachd won the Camanachd Cup in 1990.

Skye has a strong folk music tradition, although in recent years dance and rock music have been growing in popularity on the island. Gaelic folk rock band Runrig started in Skye and former singer Donnie Munro still works on the island. Runrig's second single and a concert staple is titled "Skye", sung partly in English and partly in Gaelic and they have released other songs such as "Nightfall on Marsco" that were inspired by the island.