That’s according to the 2008 AusIMM Remuneration and Employment Survey which found the nation’s skills shortage has resulted in escalating salaries and more flexible work practices, but also longer working hours.

According to AusIMM Chief Executive Michael Catchpole, the survey shows the skills shortage has several related effects on companies and employees.

He said it is professionals who work in the industry that are feeling the heat of an ever-expanding industry.

“There have been minor gains in retention overall, but our members’ view is that Australia’s professional skills base is stretched to capacity,” Mr Catchpole said.

The evidence of a dire skills shortage remains unchanged from the previous surveys, undertaken in 2005 and 2007.

In the latest survey, about two thirds of respondents agreed that people at their workplace are under more pressure because of the skills shortage (68.4 percent), that the skills shortage had left them short staffed (64.5 percent) or that the skills shortage has meant their employer now pays more for less experienced personnel (66.8 percent).

Australia’s mining industry continues to expand with a record $70.5billion in projects either committed or under construction.