Canada’s unemployment rate rose by 0.1 percentage points in June to reach 7.3%, as more people returned to the workforce to hunt for a job.

Employment edged up by an estimated 25,000 in June, the third consecutive monthly increase, but the influx of returning job hunters was enough to push the overall unemployment rate higher.

All of the employment gains in June were full time, Statistics Canada reported today. Since August 2003, full-time employment has grown by 342,000 positions, while part-time employment has declined by 27,000.

Job gains in June were all among public sector workers, as 32,000 positions were added. The largest increases came in the health care and social assistance fields, as well as in transportation and warehousing.

So far this year, employment among public sector employees is up 2.4%, or roughly 75,000 jobs, while the number of private sector employees has shown little change, StatsCan said.

Employment rose by 21,000 in retail and wholesale trade, with the largest gains in wholesale building materials and supplies, and in retail food and beverage stores. Construction employment also rose by 9,000 jobs.

About 4,000 more people were working in the information, culture and recreation sectors last month, offsetting a decline in May.

On the losing side, manufacturing employment fell by 12,000 positions in June, erasing gains made in May. Employment also fell by 15,000 in the private household services sector, as well as in personal, laundry and dry cleaning services.