The agency reported the dip as the unemployment rate held steady at 5.8 per cent for the fourth consecutive month.
The unemployment rate, in part, remained steady due to a slide in labour force participation from 65.4 to 65.3 per cent.
But Statistics Canada says, overall, the economy lost 75-hundred jobs last month as full-time positions fell by 31-thousand and the loss was only partially offset by gains in part-time work.
Canada's employment dropped in the month of May.
The average wage per hour - main rate, which is closely following the Bank of Canada increased by 3.9% compared to the same period previous year, the largest annual increase in this indicator since April 2009.
"While the province still maintains the lowest jobless rate in Canada (4.8 per cent), employment growth has quickly fallen from the top of the leaderboard to just +0.1 per cent [year over year]", BMO senior economist Robert Kavcic said in a note to investors.
The Canadian economy unexpectedly shed jobs in May as hiring declined in manufacturing and construction, although wages rose at their strongest annual pace in almost six years, which could give the central bank room to raise interest rates as soon as July. On a sector basis, goods-producing industries led the way down, with a decline of 18,300 manufacturing jobs and a drop of 13,000 in construction. The professional, scientific and technical services sector added 17,000 and transportation and warehousing added 12,000.
Provincially, employment increased in Prince Edward Island, while it decreased in British Columbia and Nova Scotia.
Full-time employment dropped by 31k net positions, while 23.6k part-time positions were added.
With files from The Canadian Press.