The UK unemployment rate has fallen to a 43-year-low but pay growth has slowed to the weakest rate in nearly a year, according to official figures released on Tuesday.
The number of Scots out of work has fallen and the jobless total across the United Kingdom reached a 40-year low, official figures today show. Economists had expected the rate to remain at 4.2% level.
The BoE raised interest rates on August 2 for only the second time since the financial crisis.
Scotland's unemployment rate dropped slightly to 4.2% in the three months between April and June.More news: Movie Director’s Pregnant Daughter Found Dead in NYC
The drop came despite a smaller-than-expected number of jobs created over the three-month period, 42,000 - less than half the average forecast by economists in a Reuters poll.
Young people also appear to be benefiting from the economic lift, with youth unemployment also at its lowest rate since record began in 1992.
Total annual wage growth slowed to a nine-month low of 2.4 percent, below forecasts for it to hold at 2.5 percent.
Excluding bonuses, pay growth fell to 2.7 percent, well below the 4 percent rate typical before the financial crisis a decade ago.More news: Fernando Alonso: How does the Spaniard compare to the Formula 1 greats?
Earnings in cash terms, including bonuses, increased by 2.4 percent in the three month period.
Output per hour worked grew by 1.5 percent year-on-year in the April-June period, the biggest increase since late 2016 after a 0.9 percent rise in the first quarter of 2018.
However, Scottish Secretary David Mundell said he was "concerned that these numbers show a worsening unemployment picture of the year", adding: "With Scotland's economy continuing to lag behind the rest of the United Kingdom, it is important that the Scottish government take the necessary steps to create the right conditions to grow our economy".
There were 780,000 people on zero-hours contracts in their main job, 104,000 fewer than a year earlier.More news: Caspian-rim nations agree on territorial waters
'The growth in employment is still being driven by United Kingdom nationals, with a noticeable drop over the past ym the so-called A8 eastern European countries in particular'.