Australia's construction boom could be threatened by a shortage of more than 130,000 skilled workers in the new year, a report has revealed.
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According to Infrastructure Australia's latest report, the nation's infrastructure workforce would need to grow by 127 per cent to make up for demand.
Growing trades and labour shortages are growing at the fastest rate in recorded history, and are expected to reach a peak of 131,000 full-time workers next year.
The Murray, Riverina and mid-north coast regions in NSW, central Queensland and the outback Northern Territory will be hit by labour shortages in coming years due to "extraordinary" levels of public and private infrastructure investment.
Infrastructure Australia CEO Adam Copp said the demand for construction, skills, labour and building materials is at an all time high.
"With so much construction activity underway, the industry is finding it increasingly difficult to source key building materials and workers - particularly engineers, skilled trades and labourers," he said.
The report also revealed limited access to Australia steel and cement, as well as local shortages to quarry products had contributed to cost blowouts, delays and price uncertainty in the construction market.
Shortages were most felt in Melbourne, south east Queensland and on NSW's mid-north coast.
"Global supply chain pressures have eased for now, with steady improvements in international production, trade, and transport measures compared with 12 months ago," Mr Copp said.
"However, Australia's lack of domestic capacity to supply building materials exposes investments to cost-overruns, delays and future global supply chain risks. It's also much more difficult to understand the level of embodied carbon in imported materials.
Engineers faced the largest of all occupational shortages, despite more than 47 per cent of qualified migrant engineers "actively" seeking a local job.
"Likely barriers to employment include a lack of local experience and professional network, as well as reluctance by business to employ skilled migrant workers,' the report read.
