Unemployment in Canada rose to 6.6% in August, up 0.2% from the previous month, according to new data from Statistics Canada released on Friday.
The unemployment rate is at its highest point since May 2017, excluding the pandemic years of 2020 and 2021.
Unemployment has trended up 1.5% since April 2023.
The economy added a net of 22,000 jobs in August. A 66,000 increase in part-time jobs offset the loss of 44,000 full-time jobs.
This marked the fourth month in a row where job numbers were mostly flat, the statistics agency said.
Analysts had been expecting an unemployment rate of 6.5% and net job additions of 25,000 for the month, per a Reuters poll.
Canada's economy is facing headwinds as high interest rates and lagging GDP growth have pushed unemployment higher, especially among youth, raising concerns about a potential recession.
In response, the Bank of Canada trimmed its key policy rate to 4.25%, with the possibility of deeper cuts, as employment growth slows and wage increases cool.