U.S. President Barack Obama Wednesday unveiled a set of proposals in his first State of the Union speech to reassure Americans worried about jobs and the economy.

Obama's first State of Union address, which was watched by millions, focused overwhelmingly on confronting the nation's economic challenges.

U.S. President Barack Obama (Front) delivers his first State of the Union Address since taking office, at the Capitol Hill in Washington Jan. 27, 2010. [Xinhua]

Number one focus

Obama said his top priority is to tackle double-digit, 26 year high unemployment.

"After two years of recession, the economy is growing again. Retirement funds have started to gain back some of their value. Businesses are beginning to invest again, and slowly some are starting to hire again," said the president in the speech.

But he admitted that every success story, there are other stories. There were "men and women who wake up with the anguish of not knowing where their next paycheck will come from," he said.

"That is why jobs must be our number one focus in 2010, and that is why I am calling for a new jobs bill tonight," he stressed..

To help create more jobs, Obama unveiled a 30 billion dollar credit fund to help small business.

The true engine of job creation in this country will always be America’s businesses, said the Obama, adding government can create the conditions necessary for businesses to expand and hire more workers.

"Tonight, I’m proposing that we take 30 billion dollars of the money Wall Street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat," Obama said in his address.

"I am also proposing a new small business tax credit – one that will go to over one million small businesses who hire new workers or raise wages," said the president.

He also vowed to eliminate all capital gains taxes on small business investment, provide a tax incentive for all businesses, large and small, to invest in new plants and equipment.