The unemployment rate in the country increased by 0.1 percentage point to stand at 6.2% in May, according to Statistics Canada, while it remained at 5.1% in Quebec.
According to the federal agency, a modest 27,000 jobs were created nationally last month. The unemployment rate in Canada stood at 6.1% in April.
The Labor Force Survey suggests Canada’s labor market continues to weaken as high interest rates weigh on consumers and businesses.
The report said that among people who were unemployed in April, just under a quarter had transitioned to employment by May.
More and more Canadians also find themselves working part-time, because they don’t have better options.
Statistics Canada says the involuntary part-time rate, which refers to the proportion of part-time workers who were unable to find full-time work or worked part-time due to weak business conditions, has was 18.2% in May. This represents an increase compared to 15.4% for the same month a year earlier.
Young people have also felt the consequences of the slowdown in the job market. The report notes that the employment rate for students aged 20 to 24 is down 2.9% from last year.
Wage growth remained strong in May, with the average hourly wage increasing 5.1% from a year ago to $34.94.
Employment increased in health care and social assistance, finance, insurance, real estate, rental and leasing, business services, building and other support services, as well as accommodation and catering services.
At the same time, employment declined in construction, transportation, warehousing and utilities.
The data release came two days after the Bank of Canada decided to cut interest rates for the first time in four years, citing signs of slowing inflation and a weakening economy.
The central bank lowered its key interest rate by a quarter of a percentage point, to 4.75%, and signaled that further rate cuts could come if inflation continues to slow.
In Quebec, employment remained virtually unchanged and the unemployment rate remained at 5.1%.