It's the second straight quarter of increases. The rate jumped to 4.2 from 4 percent in the fourth quarter last year, the first increase in five years.
The global financial crisis has taken its toll on China's job market as thousands of labor-intensive factories in the export sector have closed down or cut jobs.
Despite the dark news, however, there remains a glimmer of hope.
"The job scenario has shown positive signs in the first quarter," ministry spokesman Yin Chengji told a press conference.
The country has provided 2.68 million new jobs in cities so far this year, with the average monthly increase in employment up 51 percent over the previous quarter, he said.
The ministry wants to keep the unemployment rate below 4.6 percent this year, which would still make it the highest level of unemployment since 1980.
This year the ministry aims to create jobs for 9 million new urban workers, 5 million laid-off workers, and 1 million people who are facing difficulties finding work.
Even with the positive changes in China's economy and job market in the first quarter, the employment situation remains "grim", he said.
The number of jobs in the country has declined 7 percent in the past six months, according to the ministry's job watch system.
The jobless rate does not include the 230 million migrant workers in China, the major labor force in labor-intensive industries in coastal regions.
But Yin said the situation of migrant workers is "better than expected".
"Most of the jobless migrant workers have found employment in cities."
Chen Xiwen, director of the office of the Central Leading Group on Rural Work, told China Daily in early March that the number of jobless migrant workers was between 20 million and 30 million.
According to its latest survey, the National Bureau of Statistics said only about 11 million are now looking for jobs in cities.
Of the 70 million migrant workers who returned home during Spring Festival, 56 million left for jobs in cities after the traditional family reunion, while 14 million stayed home and were either working around their townships, tilling their land or looking for lower-paid jobs, the report said.
Labor expert Cai Fang said that Chinese migrant workers can cope well with the changing economic situation thanks to their job flexibility.
"They are willing to work anywhere, at home or in cities, and they can accept lower-paid jobs if the economy is not good," Cai said.
In Binzhou, Shandong province, 86 percent of local migrant workers are back in cities, 7 percent jobless and 7 percent working at home, he said.
He added that the labor market in cities has become more and more flexible in its adjustment to the changing economic situation so that it can create more jobs.
