Canada's unemployment rate nudged up 0.1 percent to 8.7 percent in August, Statistics Canada reported from Ottawa Friday.

The agency said part-time employment rose by 31,000 in August and employment among private sector employees increased by 49,000.

"Total employment gains were partially offset by losses in business, building and other support services, as well as educational services," StatsCan said. "Employment in the manufacturing sector continued its downward trend in August, while construction rose slightly."

Students between the ages of 15 and 24 were particularly hard-hit, as the average jobless rate for the summer was 19.2 percent, the second highest rate since such data started being collected in 1977, the agency said.

The agency said average hourly wages were up 3.3 percent compared with August 2008, which was the lowest year-over-year growth in more than two years.