U.S. President Barack Obama used his first State of the Union address to admit that when it comes to job creation, “change has not come fast enough.” But he promised to make the issue his top priority.

The embattled president urged a divided Congress to pass new stimulus spending and short-term economic relief and give Americans “a government that matches their decency."

"What the American people hope -- what they deserve -- is for all of us, Democrats and Republicans, to work through our differences; to overcome the numbing weight of our politics," he said before a politician-packed House of Representatives chamber.

Obama’s speech was aimed at winning back many Americans who have grown impatient with his administration amid a prolonged recession.

Much of the 7,000-word speech focused on creating jobs, as the country’s unemployment rate hovers at about 10 per cent.

Obama also stressed the importance of a long-term plan to foster economic growth in the U.S.

"I do not accept second-place for the United States of America. As hard as it may be, as uncomfortable and contentious as the debates may be, it's time to get serious about fixing the problems that are hampering our growth."

He bluntly addressed some of the unpopular moves he made in the first year of his presidency, particularly the bailout of Wall Street.

"I hated it. You hated it. It was about as popular as a root canal,” Obama said in the nationally televised address.

He said the massive rescue program, started under the George W. Bush presidency, helped stabilize the financial system.

Obama said “most, but not all” of the money has been regained by the government.

While much of the speech focused on the economy, Obama did not back off on his beleaguered health care agenda.

“By now, it should be fairly obvious that I didn't take on health care because it was good politics,” he deadpanned to laughs.

He urged Republicans and Democrats to cool their rhetoric and take another look at the legislation that passed the House of Representatives and Senate last year, but has since stalled.

"Do not walk away from reform. Not now. Not when we are so close. Let us find a way to come together and finish the job for the American people,” Obama said. “Let’s get it done.”

Obama scolded politicians for “you lose, I win” behaviour and said “such politics (have) stopped either party from helping the American people.”

“To Democrats, I would remind you that we still have the largest majority in decades, and the people expect us to solve some problems, not run for the hills,” he said.

He also pointedly went after Republicans.

“Just saying no to everything may be good short-term politics, but it's not leadership. We were sent here to serve our citizens, not our ambitions,” he said.

Obama admitted that part of the reason the health care plan stalled was that he did not explain it in a clearer way. However, he added that lobbyists had also left many Americans wondering what the program had for them.

The president said that health insurance reform was an important issue for the middle class, and also tied in rising education costs as an increased burden on families.

He said U.S. students need to exceed in math and science and schools are failing them.

The Republicans responded with their own speech by up-and-coming Virginia governor Bob McDonnell.

He said regulation and taxation would hurt the middle-class.

“The federal government is trying to do too much,” he said.

McDonnell called Obama’s proposal to freeze discretionary spending for three years in 2011 “laudable” but said it wasn’t enough.