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.
At the same time, the number of unemployed people fell by 3,000, according to the latest statistics.
The decrease took the jobless total to 201,000 between June and August.
The figures were welcomed by Finance Secretary John Swinney and Scottish Secretary Alistair Carmichael, who described the statistics 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%.
In September, 121,800 people were officially out of work and claiming jobseeker's allowance (JSA).
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."
Youth Employment Minister Angela Constance said: "The Scottish Government will do all it can to help more young people. With our £88 million business growth and Youth Employment Scotland Fund we will create up to 10,000 new jobs and Opportunities for All which guarantees a place in work of training for all 16 to 19-year-olds."
Mr Carmichael said: "Today's labour market figures are very encouraging. Employment has increased by 37,000 over three months and is now at its highest level since before the global economic crash, and the number of Scots claiming jobseeker's allowance is down by 18,200 compared to one year ago.
"We continue to work hard to create the right conditions for sustained long-term employment in Scotland. As part of the UK, Scotland gains from tax reductions such as the new employment allowance of £2,000 per year, benefiting 70,000 businesses in Scotland by £100 million in total, and taking 35,000 businesses out of employer national insurance contributions altogether.
"As we go forward, my focus will be on helping businesses in Scotland to create job opportunities for young people and the long-term unemployed in particular. I believe a focus on apprenticeships will help offer a route into work for our young people."
Liz Cameron, chief executive of Scottish Chambers of Commerce, said: "These figures provide us with comfort, however, we must not become complacent in our mission to revive Scotland's economy. To achieve our ambition of substantially reducing the unemployment rate in Scotland, we need to improve the information and support provided to unemployed individuals.
"Stronger business-led partnerships need to be formed, with businesses driving the information to ensure future skills provisions for Scotland's economy are met."
Scottish Trades Union Congress general secretary Grahame Smith said the statistics show the economy is "stumbing forward" when it should be moving at a "brisk pace" towards recovery.
"Despite modest improvements on a couple of indicators, including youth unemployment, the picture in Scotland is essentially one of 12-month stagnation in the employment market and some worrying trends on women's unemployment," he said.
"The improvement in long-term unemployment trends is a slightly surprising but welcome trend which we hope will continue."
Labour's deputy finance spokeswoman, Jenny Marra, said the figures are welcome but the focus must be on long-term results.
"Over the last year there's been very little overall movement in the employment figures, except we know that more young people are out of work for longer and there's more women now looking for jobs," she said.
"More people are taking short-term or part-time contracts because long-term permanent posts aren't available. This isn't sustainable for our full economic recovery as people who have an uncertain financial future are less likely to spend money."