The number of unemployed people increased by 10,000 in Scotland, according to official figures.
The increase took the total to about 203,000 between May and July.
At the same time, employment levels increased by 6,000 over the three months taking the total to just over 2.5 million the highest level in almost five years.
Labour market statistics put the Scottish employment rate at 72.4%, above the UK average of 71.6%.
The unemployment rate is 7.4%, below the UK rate of 7.7%.
Last month 126,000 people were officially out of work and claiming jobseeker’s allowance.
The figures were published as Finance Secretary John Swinney prepared to set out his Budget plan for 2014-15.
“I welcome these figures which show that employment in Scotland continues to increase,” he said.
“They also show a further welcome reduction in economic inactivity, showing that more Scots are actively seeking employment.”
The UK Government’s austerity agenda is the biggest risk to any economic recovery, he said.
“We are committed to maintaining and building sustainable economic growth in Scotland and delivering the most competitive business environment anywhere in the UK,” he said.
“With the full fiscal and economic powers of independence, the Scottish Government could do yet more to strengthen our economy and create jobs.”
Scottish Secretary Michael Moore said: “A fall in the number claiming jobseeker’s allowance for the 10th consecutive month together with an increase in employment is good news, although tempered by the rise in unemployment. Overall, 15,200 fewer people are claiming unemployment benefit compared to one year ago.
“While we have seen encouraging signs for our economy, the economic conditions remain difficult and we cannot and will not be complacent. The Government’s priority is to create opportunities to help people back into work.”
Scottish Youth Employment Minister Angela Constance MSP said: “I am pleased to see youth employment is continuing to improve in Scotland. While the number of those out of work remains too high, we remain focused on doing what we can to improve employment opportunities.”