Statistics Canada said the unemployment rate rose to 5.2 per cent in May, marking the first increase since August 2022.
The federal agency said overall employment was little changed last month as the economy lost a modest 17,000 jobs.
The jobs report came two days after the Bank of Canada raised its key interest rate by a quarter of a percentage point, citing concerns over a string of tepid economic data, including low unemployment.
The unemployment rate previously hovered at five percent for five consecutive months. In the past month, there was an increase in people working in business, building and other support services as well as professional, scientific and technical services, while employment increased in manufacturing, utilities and services such as maintenance.
Meanwhile, wages continued to grow rapidly in May, increasing by 5.1 percent compared to a year ago.