Canada’s unemployment rate was 5.4 per cent in August, ticking up for the first time in seven months.

The economy lost 40,000 jobs last month, Statistics Canada reported in its latest labour force survey, with the losses concentrated in the public sector.

The report says employment gains in professional, scientific and technical services were offset by declines in education services and construction.

The employment declines were primarily concentrated among young women aged 15 to 24 and people between the ages of 55 to 64.

The labour force participation rate held steady overall.

Statistics Canada warns employers are likely to continue facing recruitment challenges as many Canadians reach retirement age.

In August, 307,000 Canadians had left their job to retire in the last year, compared with 233,000 a year ago.

In Saskatchewan, the unemployment rate went up from 4 percent in July, to 4.9 percent in August.

In the Cities, Regina went up to 4.4 per cent from 3.9 percent in July.

Saskatoon dropped to  3.9 per cent  from 4.3.

–With Files from The Canadian Press–