Over the past year it's been reported that the ongoing nationwide skills shortage is taking its toll by delaying State government public infrastructure projects.

In New South Wales, the undersupply of skilled tradesman is having an effect on some Sydney Roads.

In November last year Premier Morris Iemma promised that critical upgrades to Sydney's congested Victoria Road would be ready by 2009, but it was recently revealed they may take another three years to complete.

In an internal memo Roads and Traffic Authority project development manager, Andrew Davidson, indicated that the project "could continue beyond 2012".

Western Australia is also facing similar problems. The skills shortage has forced the State Government to review its $18 billion infrastructure spending program.

Treasurer Eric Ripper says the shortage of skilled construction workers has caused lengthy delays in several important projects and has resulted in major cost blow outs.

He told the ABC that some less urgent projects may be delayed as a result.

"Financially we can do it, but industry can't really do what we want to do as well as all of the projects that the private sector is putting up," he said.

International Ratings agency Standard & Poor says that if the shortage of skilled workers continues it will soon start to act as a disincentive to pursue further economic developments.