SCOTLAND’S unemployment rate has risen from its recent record low, but remains below that of the UK as a whole, according to official figures.

The jobless rate dropped to 3.8 per cent in the three months between May and July, but crept back up to 4.1 per cent in the quarter from June to August.

The seasonally adjusted UK unemployment rate in both periods was 4.3 per cent.

The figures show the Scottish unemployment count rose 9000 to 113,000, while the numbers of people in work rose by 35,000 to 2.65m, up 1.2 points to 75.3 per cent.

The rate is now at a near record high and is above the UK average of 75.1 per cent.

Rising inflation meant the real terms value of wages fell 0.4 per cent year on year.

The SNP government said the employment figures were encouraging, while Conservative Scottish Secretary David Mundell said the jobless data was disappointing.

Business leaders welcomed the figures, but warned of tougher times ahead.

SNP employability and training minister Jamie Hepburn said: “While these figures are positive we recognise there are still many barriers to getting people into work and are continuing to work to improve labour market conditions.

“The Scottish economy continues to perform well against a difficult backdrop with the lack of clarity from the UK Government on Brexit and proposals to leave the world’s biggest single market posing the single biggest threat to our economy.”

Mr Mundell said: “It is encouraging to see an increase in employment, which remains close to record levels. But the rise in unemployment is disappointing and shows we must remain focused on boosting Scotland’s economy.

“Growth in Scotland lags behinds the rest of the UK and I’d urge the Scottish Government to use their considerable economic levers more effectively.”

Labour MSP Jackie Baillie said: “These figures should make sobering reading for both the Tory and SNP governments. Unemployment is up and wages continue to fall.

“Coupled with rising inflation, this means working people in Scotland are being left worse off.

“This shows the SNP is asleep at the wheel when it comes to managing our economy.

“Labour would use the powers of the Scottish Parliament to invest in our economy.

“Meanwhile, the Tories bungled approach to Brexit is making a mockery of any claims they are the party who can be trusted on the economy.”

Scottish LibDem economy spokesperson Carolyn Caddick said: “The Scottish economy faces challenges from Brexit, high inflation and skills shortages.

“There is no room for the Scottish Government to start celebrating as these figures show.

“The SNP are presiding over an erratic economy. The brush with recession earlier in the year has now been replaced by marginal growth and unemployment on the rise.

“The only clear and positive route out of this is a transformational investment in education and skills.”

Dr Stuart McIntyre of the Fraser of Allander Institute economic think tank said employment in the three months to the end of August was “robust”, with the number of employees up 1 per cent the self-employed up 7.5 per cent over the past year.

He said: “These data represent some good news for the Scottish economy. Nevertheless, the relatively fragile economic growth experienced over the past two years in Scotland remains a concern.

“In addition, with inflation spiking to 3 per cent and weak wage growth, there will continue to be a drag on household consumption going forward.”

Liz Cameron, chief executive of Scottish Chambers of Commerce, said: “The Labour Market figures continue to illustrate the effects of high inflation, with real wages lagging the inflation rate for several months. “With inflation continuing to rise, and many industry sectors observing pay growth below 2 per cent, the Bank of England must hold their nerve on interest rates. “An increase at this point would damage consumer confidence and spending at a critical period for the retail sector.”

Andy Willox of the Federation of Small Businesses in Scotland, said: “Low unemployment is good for Scottish families, communities and local businesses.

“However with turbulent economic headwinds predicted, politicians in Edinburgh and London need to stay focussed on helping smaller firms. Scotland’s latest growth figures show that there’s much to do to tune up the economy.

“With political uncertainty undermining business confidence, Chancellor Philip Hammond must deliver an autumn budget that gives smaller businesses a shot in the arm. Mitigating the cost of jobs through an expanded employment allowance would be a good place to start.

“Ministers in Edinburgh can’t forget about the impact of their decisions either. The Scottish Government must shelve plans to put additional burdens on business, like the half-baked proposals for a bottle deposit scheme.”