Statistics Canada says the unemployment rate was 5.4 per cent in August, ticking up for the first time in seven months.
According to the federal agency's latest labour force survey, the economy lost 40,000 jobs last month, with the losses concentrated in the public sector.
In July, unemployment reached a historic low of 4.9 per cent.
The report finds employment declines were primarily among young women aged 15 to 24 and people between the ages of 55 to 64.
Average hourly wages in August rose 5.4 per cent compared with a year ago, signalling faster growth in worker compensation amid high inflation levels.
The report also says 11.9 per cent of permanent employees are planning to leave their jobs within the next twelve months, almost double the rate in January.