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Yes, it is possible. The unemployment rate is calculated by dividing the number of unemployed people by the number of people in the labor force. The labor force does not include people who are not actively looking for work because they are discouraged by the job market. If over the month, some of the unemployed get jobs, and some of those who were discouraged rejoin the labor force so that they get counted in the "unemployed", employment would go up and the unemployment rate could go up. It would depend on the net effect on the "unemployed" group - if there are more people who rejoin the labor force than those who move from "unemployed" to "employed" then the unemployment rate would go up while employment also increases.

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