The number of people in work in Scotland fell by 47,000 between March and May as the impact of lockdown hit, according to the latest figures.
Data from the Office for National Statistics (ONS) shows the number of people aged 16 to 64 in employment fell to 74.1% (2.642 million), a 1.2% drop on the previous quarter.
The number of people who were out of work rose by 15,000 between March and May this year.
ONS figures show the unemployment rate for people aged over 16 rose to 4.3% (120,000) during that period, a 0.6% increase on the previous quarter.
This was higher than the UK unemployment rate of 3.9%.
Economy Secretary Fiona Hyslop said: “For the period March to May 2020, Scotland’s employment rate estimate fell over the quarter to 74.1% and the unemployment rate estimate rose over the quarter to 4.3%.
“These statistics cover around two months of lockdown measures before businesses started to open again, but do not reflect the full picture of our labour market as the job retention scheme will have offered some relief to many employers and employees.
“We want to provide long-term certainty for those affected by the Covid-19 pandemic, by continuing to keep companies in business and people in jobs, and have provided a package of support to businesses that totals over £2.3 billion. This includes the £185 million additional support fund for businesses otherwise unable to access support.
“The job retention scheme will end in October but we believe the UK Government must extend the scheme, particularly for sectors that have been most affected by Covid-19, for example travel and tourism and hospitality, given that most of these sectors will not have fully recovered by October.”
She said the Scottish Government has committed a further £100 million for “employability and training support” to help anyone who has lost their job or is at risk of losing their job, as well as those looking for work.
Chancellor Rishi Sunak said: “It’s clear that we’re in the middle of a severe economic downturn.
“I know people are anxious about losing their jobs and incomes. As I said last week, we will never accept unemployment as an unavoidable outcome, which is why I set out our clear plan last week to protect, support and create jobs.
“Our Plan for Jobs provides significant, targeted support where it is needed the most to ensure nobody is left without hope as we reopen our economy.”
Scottish Secretary Alister Jack said: “Today’s figures continue to show the impact of coronavirus on our economy.
“The UK Government has provided unprecedented support for people and businesses in Scotland during this pandemic. Almost 900,000 jobs across Scotland are being supported through the UK Government’s ground-breaking furlough and self-employed schemes.
“People and businesses in Scotland also continue to benefit from UK-wide schemes such as the tourism VAT cut, company loans, VAT deferral and Universal Credit.
“The UK Government is committed to supporting Scotland through this pandemic and getting our economy back on track. We urge the devolved administration in Scotland to work with us on that.”