UNEMPLOYMENT in Scotland has risen by 12,000, the latest figures have revealed.

The number of people out of work stands at 137,000 an unemployment rate of 5.2%.

However, the Office for National Statistics, using the Government's preferred International Labour Organisation data, showed the number of people in employment in the three months to November 2006 hit a new high of 2,480,000 up by 13,000 over the quarter and by 14,000 on last year.

The number of people out of work and claiming Jobseeker's Allowance fell 900 to 85,400 in December 2006.

Commenting on the figures, the Secretary of State for Scotland Douglas Alexander, said: "The reported rise in unemployment has to be seen in context of the strength of the Scottish labour market.

"This data shows that we cannot be complacent about the health of the Scottish labour market.

"We must continue to support work schemes such as the New Deal to ensure that the prosperity can be shared by all."

The data suggested record numbers of people are in recorded employment in Scotland and the country is enjoying its highest level of economic activity - those either in work or ready to work - since records began in 1992.

Activity was at 2,617,000 an increase of 25,000 on the previous three months and 12,000 on the year.

Mr Alexander, said: "I welcome the increases in employment and economic activity."

The unemployment level was 2000 lower compared to the same quarter last year while the unemployment rate was up by 0.4% from the previous quarter.