Official statistics show that between June and August, the number of people in work rose by 37,000, taking the total to 2,548,000.
The increase means employment is now at its highest level since the summer of 2008 and the start of the recession.
In further good news for the Scottish Government, the number of unemployed people fell by 3000, according to the latest statistics, with the decrease taking the jobless total to 201,000 between June and August.
The figures brought a rare display of unity from SNP Finance Secretary John Swinney and the Coalition's Scottish Secretary Alistair Carmichael, who described the figures as "positive" and "encouraging".
The labour market statistics put the employment rate at 72.8%, a rise of 0.9 percentage points. The unemployment rate decreased by 0.2 percentage points to 7.3%, below the UK rate of 7.7%.
Mr Swinney said: "On figures for employment, unemployment, inactivity and youth employment, Scotland continues to perform better than the UK as a whole with the employment rate amongst our young people continuing to be the highest of all UK nations.
"Encouragingly, the number of people claiming jobseeker's allowance is also at its lowest level since March 2009." Mr Carmichael added: "Today's labour market figures are very encouraging. We continue to work hard to create the right conditions for sustained long-term employment in Scotland. My focus will be on helping businesses in Scotland to create job opportunities for young people and the long-term unemployed in particular."
However, the Scottish Trades Union Congress (STUC) said the figures showed the Scottish economy was only "stumbling forward" when there should really be "a brisk pace towards recovery".
General secretary Grahame Smith said: "To the extent that there is any recovery at all, it is excruciatingly slow."