By Kim Mackrael

OTTAWA--Canada's labor market continued its recovery in August with the economy adding jobs for a fourth consecutive month. The unemployment rate also moved lower.

The Canadian economy added a net 245,800 jobs in August on a seasonally adjusted basis, Statistics Canada said Friday, building on a gain of nearly 420,000 jobs in the previous month. Market expectations were for an increase of 250,000 jobs in August, according to economists with the Bank of Nova Scotia.

The unemployment rate in August was 10.2%, or a drop of 0.7 percentage point from the previous month. The jobless rate reached a record 13.7% in May, following coronavirus-induced economic shutdowns that began earlier in the spring.

Write to Kim Mackrael at kim.mackrael@wsj.com