The term eczema is used for skin lesions that are associated with itching, redness, small bumps (papules), blisters, peeling, and sometimes fluid discharge. These phenomena are the result of an inflammatory reaction of the skin. The inflammation of eczema is not caused by bacteria or fungus, so it is not contagious. Some forms of eczema can be very difficult to treat and last a long time. Various factors play a role in most forms of hand eczema. These factors can act on the skin both externally and internally.