President Barack Obama
US President Obama attends a DNC event in Chicago

Following the President's 50th birthday celebration on Thursday, analysts were surprised to see how the celebrations quickly turned to a campaign rally, with the president even given his supporters a pep talk in Washington, D.C.

The President acknowledged the difficulties facing his 2012 re-election bid and said his supporters and team must work cooperatively to reach "all the people that may have gotten turned off to politics, may be disillusioned, maybe are going through a tough time because of this difficult economy."

Outreach, he said, "is always easier to do as a team. ... Obviously I want you to talk to your friends and your family, and the Republican uncle that you've got who isn't persuaded yet ... [to] talk issues at the workplace, around the water cooler, having conversations with friends of yours about why it's so important for them to be engaged."

Just a day after his call for support, it seems that Obama was decided for his words to be met by action as the White House announced it will propose a $120 million package of new tax credits for businesses that hire U.S. veterans returning from Iraq and Afghanistan.

The news comes at a time where unemployment in the U.S. is high, and many army veterans still deployed abroad worry they will not be able struggle to find a job, as many of the verterans that have already returned are still unemployed.

Recent figures showed that in June 1 million veterans were unemployed, increasing fears and panic within army officers and their families.

Obama was due to visit Washington's Navy Yard to unveil a package of measures, including improved retraining and education, to help smooth the way for service members entering a tight U.S. job market, administration officials said.

"The brave men and women who have put their lives on the line for our country ... should not have to necessarily sacrifice more because our country is recovering from a very deep recession," one administration official said.

Reports say that Obama will propose a new "Returning Heroes Tax Credit" of $2,400 to firms for each veteran they hire who has been unemployed for less than six months and $4,800 if unemployed for half a year or more, administration officials said.

The "Wounded Warriors Tax Credit," on the other hand, will be increased from to $9,600 for taking on someone unemployed for six months or longer.

Sources say the plan will cost the administration approximately $120 million over two years but before being implemented. It still needs congressional approval.

Obama will also challenge the private sector to hire or train 100,000 unemployed veterans by the end of 2013 and will name companies willing to take part and create a "reverse boot camp" to help veterans make the transition to civilian careers, officials said.

Analysts say that the President hopes the new plan will help him reinforce and expand his support base, after a poll in July found that found 54 percent of swing-voting independents disapprove of the president's record, while many of his 2008 campaign supporters are rumoured to be disillusioned and have lost interest, observers warn.

In his speech yesterday Obama acknowledged the loss of political momentum, saying, "I know that over the last two and-a-half years there have been times where people have been frustrated. This past week was a frustrating week."

"This election is going to be a seminal election, in some ways maybe more important than the last one," he said.

"We're in for a long battle," Obama warned his supporters. "We've got 16 months in which we're just going to have to be knocking on doors, making phone calls, turning out voters. But it starts now ... and it starts with you."