Board Thread:Lore Discussion/@comment-2.100.91.236-20130823111402/@comment-6881629-20130823114516

Vvardenfell (Morrowind in the game) at the time of the Skyrim game is mostly uninhabitable. Most of the Dunmer left alive from the destruction caused from the Ministry of Truth falling Red Mountain erupting (it hasn't really stopped yet) and then the Argonian invasion have fled to the Mainland of Morrowind or to Solstheim.

For more info cheak the UESP page for Vvardenfell hereor better the Red Year here.