The specialist recruitment company said in the 2008 Hays Salary Survey - which includes 30 oil & gas jobs - that 201 oil & gas related companies are now working in the state, compared to 94 last year.

As part of the response to meet this demand, more companies are recruiting candidates from overseas, resulting in an increase in the sponsorship and relocation of personnel.

Increases in non-financial incentives such as share options, higher superannuation contributions, medical benefits, extra curricular training and flexible working hours are also being used to attract high-calibre talent.

The survey also showed that most companies in the oil & gas industry were still optimistic about future growth prospects with 50% of respondents expecting permanent staffing levels to increase while only 4% saw a decrease in the next 12 months.

Hays regional director of oil & gas Ben Hiles said the results showed Australia's business strength was built on a solid base and the economic uncertainty gripping global markets was not yet biting into Australian employment.

"Steady jobs growth is still the dominant feature of Australasia's recruitment market and there are plenty of examples of significant salary increases that testify to its ongoing strength," he added.

Bouyant recruitment activity across all states and the strengthening of the Australian dollar has seen an increase in salaries locally and a levelling of salaries between Australia and other international oil & gas countries. Across all sectors, most employers increased salaries by 3-6%.

The growth in demand for skilled workers is also forcing employers to compete for the top talent or risk being left behind without the staff required in this ever-changing market sector.