Alex Salmond has declared the jobs market recession to be over as he welcomed strong employment figures driven entirely by a rise in the number of women in work and a fall in the number unemployed.

The First Minister credited his government's expansion of nursery places with a steep increase in female employment, which rose by 27,000 to just less than 1.3 million between July and September.

Over the same period, unemployment among women fell 11,000 to 65,000, a jobless rate of 4.8 per cent, which Mr Salmond said was the fourth lowest in Europe.

The figures for women accounted for an overall rise in employment and fall in unemployment in Scotland, according to the latest official statistics.

Total unemployment fell by 10,000 to 164,000.

The number of Scots in work rose by 22,000 to 2.6 million, as the rise in women's employment more than made up for a fall in the number of men in jobs.

The figures were welcomed by business organisations and both the Scottish and UK governments. However the TUC voiced caution, warning the rising employment was accompanied by such slow growth in wages that it would take 12 years to return to pre-recession levels.

The figures also came as the Fraser of Allander Institute warned the economic recovery could soon be "running on empty," with a return to rising unemployment next year.

But welcoming the statistics yesterday, Mr Salmond said only the Scandinavian countries had higher levels of female employment, while across Europe unemployment was lower only in Germany, Austria and Malta.

He said: "In terms of the jobs market we can say that we have recovered from recession as we are now above where we were even in 2007. I think the expansion of ­nursery education has helped enormously in allowing the talents of women into the workforce, so that is really good news for Scottish families."

He said Scotland needed extra powers to support employment but insisted the figures would fuel calls for constitutional change.

However, Scottish Secretary Alistair Carmichael said the figures showed the UK Government's long-term economic plan was working.

Scottish Chambers of Commerce chief executive Liz Cameron said the picture reflected growing business optimism, but called on both governments to help plug skills shortages in the labour market.

TUC General Secretary Frances O'Grady said: "It's good to see an increase in real wages after so many years of falling living standards, but at today's rate of wage growth it would take another 12 years for people's pay to be worth what it was before the recession.

"Huge concerns remain about the quality of many of the jobs being created, and as the Chancellor has found out to his cost many people are not earning enough to pay much tax, if any."