Unemployment in Scotland stands at its lowest level in 34 years - evidence that the economy north of the border remains buoyant despite the global credit crunch and turmoil in financial markets.

Unemployment in Scotland stands at its lowest level in 34 years - evidence that the economy north of the border remains buoyant despite the global credit crunch and turmoil in financial markets.

In its latest monthly employment report, the Office for National Statistics said yesterday that the number of people claiming the Jobseeker's Allowance in Scotland fell by 600 last month to 68,700.

The number of claimants is 13,200 down on February 2. and unemployment is at its lowest level since the 2.5% unemployment rate that was reported in May 1974.

Scotland Office Minister David Cairns said the figures showed that the economy is continuing to do well.

"There are now more than a quarter of a million more people in work than in 1997, and the number of people out of work and claiming Jobseeker's Allowance hasn't been lower since 1974," Cairns said.

"We can't be complacent, and the Chancellor has re- acted to uncertain global economic conditions by delivering a Budget designed to maintain stability.

"But the fact that the Scottish labour market continues to demonstrate its resilience is a good advert for the macroeconomic policies pursued by the UK government".

Total employment stood at 2.535 million, a fall of 14,000 over the quarter but an increase of 16,000 over the year.

At Holyrood, Enterprise Minister Jim Mather said: "The number of people in work in Scotland continues to rise and the employment rate exceeds the UK average.

"Today's statistics show that 16,000 more people are in work than the same period last year. That is good news."

But he said the Scottish economy as a whole had underperformed for decades.

"That's why the SNP government's economic strategy commits the whole of the public sector to focus on creating a competitive business environment that will deliver increased sustainable economic growth, benefiting the whole of Scotland."

For the UK as a whole, the number of people in work has reached a new peak of almost 30 million and unemployment has continued to fall.

The jobless total was cut by 32,000 in the three months to January to 1.61 million, while the numbers on Jobseeker's Allowance fell by 2800 last month to 793,500.

Economists said the good jobs data should give a lift to Prime Minister Gordon Brown and the Labour government, whose popularity has slumped to a 25-year low in opinion polls.