LONDON, Aug 26 (Reuters) - J Sainsbury (SBRY.L), Britain's third-biggest supermarket group, expects to create up to 20,000 seasonal jobs over Christmas and New Year, the biggest such hiring it has conducted, it said on Wednesday 26 August.

Tu Clothing autumn 2009 at Sainsbury's - Photo: www.sainsburys.co.uk

The group expects at least 1,000 of the staff will be retained in permanent positions and that this will be in addition to the 2,300 jobs it recently announced it would create in the north of England and Scotland by summer 2010.

Last year, Sainsbury took on around 12,000 seasonal workers.

While unemployment has been rising in Britain, supermarkets have been taking on more staff as they expand non-food ranges and attract cash-strapped shoppers with often lower prices.

Tesco (TSCO.L), Britain's biggest retailer, said last week it was creating over 800 jobs in Scotland as part of its expansion into financial services. [ID:nLK498676]

Wm Morrison (MRW.L), Britain's fourth-biggest grocer, said earlier this month it would create 7,000 jobs this year, exceeding its original target by 40 percent. [ID:nLC732669] (Reporting by Mark Potter, editing by Will Waterman)