Statistics Canada released the labour market data on Friday. Canada's unemployment rate rose to 7.3% in February from 7.2% in January. Analysts had expected the unemployment rate to remain unchanged at 7.2%.
The labour participation rate remained unchanged at 65.9% in February.
The Bank of Canada monitors closely the labour participation rate.
The number of employed people fell by 2,300 jobs in February, missing expectations for a rise of 9,000 jobs, after a 5,400 decrease in January.
The decrease was driven by a drop in full-time work. Full-time employment dropped by 51,800 in February, while part-time employment climbed by 49,500 jobs.
Employment declined in health care and social assistance, educational services, 'other services,' and natural resources.