US President Barack Obama has said in his first State of the Union address that creating jobs will be his top priority for this year.

The State of the Union is the US president's annual address to the US Congress. The president said that the billions of dollars paid back by banks which earlier received government support will be used to stimulate export and support small businesses. The federal budget will be frozen for three years to reduce soaring deficits, with the exception of defence, social security and health care.

Mr Obama said he was determined to push ahead with his health care reform plans. He also wants to restore faith in the federal government and praised the spirit of the American people: "And what keeps me going – what keeps me fighting – is that despite all these setbacks, that spirit of determination and optimism – that fundamental decency that has always been at the core of the American people – lives on".

Photo: President Barack Obama holding his State of the Union address