Hundreds of people have applied for just 35 jobs at a new supermarket in Leicester.

Tesco, which is opening one of its new Express stores in Melton Road, Belgrave, this spring, revealed it had received 600 applications for the vacancies, which have now all been filled.

It comes as unemployment in the city and county hit a 20-month high this month.

Figures show that the number of people claiming Jobseekers' Allowance is up by 5.9 per cent on the December total, at 23,022 – the biggest rise in 12 months.

Business leaders said the Tesco jobs are a "welcome boost", but that they disguise a skills gap in the local economy.

Martin Traynor, chief executive of Leicestershire Chamber of Commerce, said: "The fact that 600 people have applied for just 35 jobs is incredible.

"These jobs are very much welcomed but it does highlight the skills gap we have in the city and county.

"We currently have 23,000 people out of work, but there are 16,000 vacancies that employers are struggling to fill.

"While retail jobs created by firms such as Tesco are a boost to the local economy, they are comparatively unskilled.

"That's why so many people are applying for such few vacancies.

"What we need to do is somehow find a way to ensure that more people receive the training required to apply for the more skilled jobs, which are out there."

The store, which is on the site of the former Walkers Tyres site, is due to open in May.

City councillors turned down a planning application for the store in February, last year, after opposition from local shopkeepers, but Tesco then won permission on appeal.

Leicester East MP Keith Vaz said: "Of course shopkeepers opposed the development of a Tesco in the middle of Melton Road as it will almost certainly affect their trade.

"However, the decision has been taken and I welcome the fact that local jobs will be going to local people.

"It is important that Tesco now works with local shopkeepers and makes sure that the new store complements their services rather than try to put them out of business."

Last year, a total of 1,800 people applied for just 68 jobs when Tesco opened a Metro store, in Evington. On that occasion, store manager Dave Hobson said: "In this economic climate, you expect the response to job adverts to be high but I certainly didn't anticipate this amount of applications."

Nobody from Tesco was available to comment yesterday.

Tesco advertises for staff through the Leicester branch of Jobcentre Plus and has a recruitment centre in Oadby.

David Simms, district manager for Jobcentre Plus, has previously described it as a "good example of our successful local partnerships, which provide valuable recruitment solutions to benefit both employers and job seekers in the area."

Further jobs are expected to be created when Tesco opens its new store in Braunstone Gate, Leicester, in July.