Unemployment across the UK hit its highest rate since January 1997 in the three months to May, although the number of people claiming jobless benefit rose by much less than feared last month.
Claimant count unemployment rose by 23,800 in June, less than analysts' forecasts for a rise of 40,500. Nonetheless, the claimant count rate rose to 4.8 percent, its highest since November 1997.
The wider ILO measure of unemployment rose by 281,000 in the three months to May, the biggest quarterly increase since records began in 1971, taking the jobless rate up to 7.6 percent.
That was the highest since January 1997 and exceeded forecasts for a rise to 7.4 percent.
The data will reinforce policymakers' caution about the timing and strength of any economic recovery, despite signs that the slump in activity may be over.
Reacting to today's figures, Scottish Enterprise Minister Jim Mather said, "There is no doubt these are tough times for businesses and households across Scotland - as the latest unemployment figures clearly show.
"But despite the challenges of recession, Scotland maintains a higher em
ployment rate and a lower unemployment rate compared to the UK and many other advanced economies. In addition, we have higher economic activity rates than the rest of the UK.
"These figures", he added, "also demonstrate the folly of the public spending cuts Westminster seem determined to implement next year. Instead of reducing the Scottish budget and therefore spending in Scotland by £500 million, the Treasury should be looking at enabling the Scottish Government to seize the opportunity to accelerate spending further and give our economy the support it needs to make a full and sustained recovery."
Said Ross Walker at RBS, "I think the growing divergence between the claimant count and labour survey numbers is important and I can't take much encouragement in the smaller rise in jobless claims when the economy is shedding so many jobs." .
Average earnings including bonuses rose at their fastest pace since December, up 2.3 percent in the three months to May compared with a year ago. Excluding bonuses, however, average pay rose 2.6 percent in the three months, the lowest since records began in 2001.
Sterling pared gains against the dollar and dipped further against the euro after the figures were released. The stock market, responding to signs from company results that the worst of the recession is over, gained 61.27 to 4298.95 by mid morning, a rise of 1.4 per cent.
