THE number of unemployed people has increased by 10,000 in Scotland during just three months, according to new figures.

The increase took the total to about 203,000 between May and July.

At the same time, those in work increased by 6,000 over the period, taking the total employed to just over 2.5 million - the highest level in almost five years.

Labour market statistics put the Scottish employment rate at 72.4%. The UK average of 71.6%

Meanwhile, the unemployment rate in Scotland sits just below the UK average at 7.4%.

Last month, 126,000 people were officially out of work and claiming jobseeker's allowance, which is down more than 10% on the year.

Scottish Secretary Michael Moore said: "A fall in the number claiming jobseeker's allowance for the 10th consecutive month together with an increase in employment is good news, although tempered by the rise in unemployment.

"Overall, 15,200 fewer people are claiming unemployment benefit compared to one year ago.

"While we have seen encouraging signs for our economy, the economic conditions remain difficult and we cannot and will not be complacent. The Government's priority is to create opportunities to help people back into work."

Finance Secretary John Swinney said: "I welcome these figures which show that employment in Scotland continues to increase.

"They also show a further welcome reduction in economic inactivity, showing that more Scots are actively seeking employment."

The UK Government's austerity agenda is the biggest risk to econ-omic recovery, Mr Swinney said.

Health and social work continues to be the biggest employer in Scotland, with 399,000 jobs in the sector.

Wholesale and retail is the second biggest employer, with 381,000 jobs and manufacturing with 202,000 posts.

Administration and support is also a strong employer with 207,000 jobs which include 14,000 jobs created in Scotland in the past year alone.

Real estate has also seen a growth, with 10,500 more jobs in the industry than a year ago.

Grahame Smith, Scottish Trades Union Congress general secretary, believes there is little in the statistics to support growing optimism about immediate economic prospects. He said: "The STUC has consistently argued that recent labour market data provided little encouragement: unemployment is stagnating at a high level, employment growth is much too slow, underemployment is at a historically high level and the jobs that are being created are generally low paid and insecure," he said.

"As the nascent recovery starts to take root, the key question is whether growth will begin to translate into more and better job opportunities for the people of Scotland.

"The last thing the still-weak economy needs is for the UK Government to use recent growth and labour market data as an excuse to increase the pace of austerity."

Liz Cameron, chief executive of Scottish Chambers of Commerce, also gave a lukewarm welcome to the figures. She said: "This is another clear signal that whilst many economic indicators may be improving, we are far from being out of the woods and there is no room for complacency, especially when it comes to creating and sustaining jobs in Scotland."

Prime Minister David Cameron said there was still a long way to go when it comes to economic recovery. Speaking in the Commons, he said: "As the Chancellor said, 'We are turning the corner'. But we have got to build this recovery.

"There must be absolutely no complacency as we do everything we can to make sure this recovery delivers for hard-working people."