Australia is to boost its skilled migrant intake by 30 per cent over the next year in a bid to overcome a shortage of skilled workers.

According to the immigration ministry's website, the main shortages are in trades - particularly in building, construction and the mining industry.

The director of the Australian Demographic and Social Research Institute, Peter McDonald, told Radio Australia's Connect Asia program shortages are widespread across the whole economy as well.

"There's a very heavy demand for engineers, and engineers are right up there at the top on the demand list," he said.

"But mining these days, of course, is not a matter of people down holes with picks and shovels in Australia, so everybody is relatively skilled."

Mr McDonald says skill shortages are so dramatic due to birth rates being lower, and the post-war baby boom generation passing out of the labour force.

Demands on infrastructure, housing expected
There is also a need for essential infrastructure for the tens of thousands of expected new migrants.

"We need to be looking at the longer term and what kind of infrastructure requirements are associated with new migrants," he said.

"New migrants also generate demand for additional labour as well, they shop and they require all kinds of services, so there's a kind of multiplier effect upon the labour force.

"So as migration goes up there is a further demand for labour, but there's also demand for housing.

"It's fairly clear that high levels of immigration in recent times have been a central part of the housing problem in Australia."

He says while the pressure on housing and infrastructure is an issue to be addressed, a lot of skilled migrants are already quite well established in Australia in the form of students and 457 visa holders.

"So the story's not quite as bad as that at all I don't think," he said.

Produced by Radio Australia and Australia Network