UNEMPLOYMENT in Scotland rose by more than 7000 in final three months of last year.

Official figures released today showed the total standing at 139,000, 3000 up on the previous year.

Big losses towards the end of the year included Thomson Holidays and Norwich Union. And others, such as Simclar and NCR have still to hit the figures.

But the overall employment picture was confusing, with the number of people claiming Jobseeker's Allowance actual falling by more than 2300.

And the number of Scots in work - 2,507,000 - was also at its highest level since 1992.

Despite the increase in unemployment, Scots Secretary Douglas Alexander said: "These latest figures confirm that the Scottish labour market is fundamentally strong.

"New record levels of employment and economic activity show that Scotland is working."

Stephen Boyd, STUC assistant secretary added: "The employment rate is hugely encouraging, but the loss of manufacturing jobs continues to be a major concern. This comes when many European competitors are growing their manufacturing sectors. It is now time to reinvigorate the debate on how to retain Scotland's manufacturing base".

Elsewhere in the UK, today's figures revealed that unemployment had fallen - and a record number of people were in work.

The number of people looking for a job fell by 23,000 in the three months to December to 1.69 million, while there was also a cut in those claiming Jobseeker's Allowance.