Fast food giant McDonald's is to create 2,500 jobs in Britain this year, the company said Tuesday in a joint announcement with the government, further boosting the country's battered employment market.

More than a half of the new posts are set to go to young people and about 30 percent to first-time workers.

McDonald's announcement comes a day after supermarket chain Asda said it would create 5,000 jobs in Britain this year.

"It is fantastic news that McDonald's is creating 2,500 new jobs in the UK -- and that over half of these posts will go to young people," Deputy Prime Minister Nick Clegg said in a statement.

Jill McDonald, chief executive officer of McDonald's UK, said: "Despite these difficult economic conditions ... we are able to continue to invest in the business and create jobs.

"Today's job market is particularly tough for young people," she added.

Britain's unemployment rate stands at 8.4 percent, the highest level for 17 years, as young people leaving school and university struggle to find jobs amid a climate of weak economic growth.