The new workers, young adults, many of them will be taken in the next two years as store giant tries to turn around a decline in market share.
The move has been welcomed by David Cameron, who is desperate to promote the management of government in the fight against youth unemployment.
The chain was attacked by protesters shortly after a store advertising job work experience to unemployed youth on the basis of the benefits plus expenses.
The announcement was quickly abandoned by Tesco, while other large employers suspended their participation in the scheme of work experience controversy.
The scandal was focused on complaints that young adults who have their benefits withdrawn if they are removed from a placement.
Ministers accused the protesters of being involved in a sinister campaign by the Socialist Workers Party.
However, the government was later forced a U-turn bruising he saw the threat to remove the benefits of being eliminated.
Despite recent setbacks, Tesco remains largest and richest retailer in the UK and is on track to make a profit of over £ 3.5billion this year.
The company is the UK's largest private sector employer with more than 290,000 employees and 70,000 young people under 25 years of age.
The 20,000 new jobs includes 10,000 trainees and up to 1,500 young people who participate in work experience program changed.
Tesco said that the applicants work experience carried out at a good level is guaranteed a permanent job. He said the average starting salary for permanent staff is £ 7 an hour.
Chief Executive Richard Brasher, Tesco insisted that provide real jobs for unemployed youth.
He welcomed the decision to ax the threat to remove the benefits of the people who decide not to proceed with a work experience.
"From the standpoint of the Tesco scheme is entirely voluntary. With no threat is more consistent with voluntary work," said
"With youth unemployment at record levels, we are determined to attack many of our new jobs for unemployed young people - so that in this difficult job market who need more help to get it," he said.
"The unprecedented economic conditions like these, large companies have a responsibility to step forward, invest and create jobs. Today's announcement is a huge opportunity in the arm for the UK economy.
Mr. Brasher said the thrust of the new jobs is to improve customer service
"At the core of this investment is our determination to deliver the best shopping experience for our customers without exception. We will invest in more staff on the sales floor during peak hours, more experience and help in the crucial areas of the fresh food, quality and service through our stores at all times. "
In the past, Tesco has recruited staff from outside the United Kingdom, particularly Poland, to work here. However, Mr. Brasher insisted that the new jobs go to people who already live and work here.
There is some skepticism about whether high-profile claims of job creation by large supermarkets up to scrutiny. The annual figures on the number of staff suggested that the claims do not correspond with reality.
Mr. Brasher said: "This is a commitment to real jobs. In the current climate, people going out and creating a new job is a good thing.
"The great thing about our business is that we scale, we are growing and therefore we can create jobs for many more."
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