SCOTLAND'S unemployment rate has fallen to 3.8%, the latest figures show.

The jobless rate dropped 0.2 percentage points in the period May to July, from 4% in the previous three months.

The figure is also down from 4.7% in the same period last year.

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Official figures show that for those aged 16 and over, unemployment fell by 4,000 to 106,000 - while the number of people in work increased by 49,000.

Over the same period, the UK unemployment rate also fell 0.2 percentage points to 4.3%, according to the Office for National Statistics (ONS).

Grahame Smith, general secretary of the Scottish Trades Union Congress, said: "More positive news on unemployment should not be allowed to distract from the difficult conversations we need to have about our labour market.

"Real wages are consistently down, falling by 0.4% this quarter, and households across the country are feeling the pinch.

"Both the UK and Scottish Governments need to focus on putting money back in the pocket of workers, and the wider picture for the economy looks bleak if we continue downwards in this low pay, low growth, high debt economy."

The Scottish Government highlighted that for those aged 16-64, the employment rate reached a new high of 75.8% between May and July, the highest of any UK nation.

Employability Minister Jamie Hepburn said: "These are the latest encouraging figures for Scotland's economy and labour market - employment has never been higher and unemployment has never been lower.

"There are now 109,000 more people in employment compared to the pre-recession peak and Scotland now has the highest employment rate in the UK.

"Our unemployment rate remains a success story, showing that the labour market remains resilient and robust.

"With the most recent GDP figures showing the Scottish economy grew nearly four times that of the UK in the first quarter of this year, today's labour market figures are further proof that the fundamentals of Scotland's economy remain strong, despite the challenges posed by Brexit."

Scottish Secretary David Mundell said: "It is very encouraging that Scotland's employment has reached a record high and that unemployment remains at a historic low. More people in work means more money in people's pockets and that's good news."