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Tesco, the Britain's biggest retailer, plans to add 20,000 jobs in two years through investment in customer service and create new jobs for young people, amid surging unemployment woes in the UK.

The supermarket giant plans to expand its work force by nearly 7% of current UK staff, partly through new store openings and upgrades to existing outlets, reported The Wall Street Journal.

The new employees will work on fresh produce, meat and bakery counters in stores, the Wall Street Journal quoted a spokeswoman for the company as saying.

Richard Brasher, Tesco's U.K. chief executive, said that the retail chain will create new jobs to tackle unemployment in the UK.

"With youth unemployment at record levels, we're determined to target many of our new jobs at young people currently out of work-so that in this difficult jobs market those who need help the most will get it," The Wall Street Journal quoted Brasher as saying.

Prime Minister David Cameron welcomed the move and said that it would be a big boost for the UK economy.

"This is a massive confidence boost for the UK economy. Tesco is one of the world's leading companies and the biggest private sector employer in this country. Their commitment to creating jobs and opportunities for young people at what is a difficult time for the economy is fantastic news for the UK as a whole and for those people they will help into work," the Press Association quoted the prime minister as saying.

The new jobs include full-time, part-time jobs and apprenticeship placements. The company has more 290,000 workers and at least a quarter of them are young below the age of 25.