UNEMPLOYMENT in Scotland has dropped by a record figure as the number of people out of work in the UK fell below two million.

There were 151,000 people out of work in Scotland between June and August, a fall of 40,000, and there was an increase in employment of 35,000 during the same period - up 52,000 on the same quarter last year. A total of 2,611,000 people north of the Border are now in some form of employment.

Scotland's unemployment rate is now below that for the UK as a whole, at 5.5 per cent, against six per cent south of the Border. The employment rate in Scotland of 73.9 per cent is also above the UK average of 73 per cent, according to the Office For National Statistics.

Meanwhile, the number of people in Scotland who are out of work and claiming Jobseeker's Allowance rose by 300 from August to 91,100 in September - but the level is down 30,500 on September last year.

The statistics also show the number of women in employment reached a record 1,284,000, with the female employment rate in Scotland above the UK figure at 71.4 per cent, against 68.1 per cent.

UK-wide, the number of people in work reached a record 30.7 million, while unemployment dipped 154,000 in the quarter to August to 1.97m, the lowest for eight years.

There was an 18,600 fall in those claiming Jobseeker's Allowance in September to 951,900 - the 23rd consecutive monthly reduction.

Prime Minister David Cameron said: "The biggest-ever fall in unemployment in history, taking it below two million, is great news. Our plan is working, but there is still much more to do."

Scottish Secretary Alistair Carmichael said the data showed Scotland was "moving in the right direction".

He said: "The biggest quarterly fall in Scottish unemployment since records began and confirmation that Scotland's economy has now grown for two consecutive years is very welcome news.

"This year we have seen new record high levels of employment and today marks another record high, with more Scottish women in employment than ever before.

"Challenges remain, as the rise in the number of Scots claiming Jobseeker's Allowance shows. This, however, comes off 18 consecutive months where the number has fallen and there are 30,500 fewer Scots claiming Jobseeker's Allowance than one year ago."

First Minister Alex Salmond pointed out the rise in employment came in the months running up to the referendum, saying: "Political confidence and economic confidence go hand in hand. There is no trade-off between democratic participation and real economic growth.

"As the Scottish economy grows our task is to ensure everyone is able to benefit from that economic success. With discussion on further powers for the Scottish Parliament now taking place it is essential we have the full tools we need to support employment opportunities for everyone in Scotland."

Angela Constance, the Cabinet Secretary for training, youth and women's employment, hailed the figures as "excellent news".

Liz Cameron, director of Scottish Chambers of Commerce, said: "These are concrete signs of an economy that is looking forward with optimism and of businesses that have ambitions to grow."

But Unite union general secretary Len McCluskey said: "The continued fall in unemployment is welcome, but scratch the surface and today's figures reveal an economic recovery that is passing people by as the wage siege continues and the world of work becomes more insecure.

"This is a part-time recovery built on the back of low wages and an explosion of self-employment that is leaving millions in an employment limbo land, without rights, security or guaranteed income."