About 37,000 fee-free places will be available in aged care, health, technology, hospitality and tourism, construction, agriculture and manufacturing courses in 2023 after a $200 million deal was struck on Monday.

Students who enrol won't pay any fees, but they may need to pay for uniforms and equipment, the state government said.

Queensland Skills Minister Di Farmer said more than eight out of 10 students who finished TAFE courses in the state either found a job or took on more training.

"Students who go through these paid courses are incredibly successful in getting jobs," she told reporters.

Certain TAFE courses in healthcare, laboratory services, manufacturing, education, social services, agriculture, horticulture and gardening have been free in Queensland since 2018 and 60,000 people have enrolled since then.

Federal Skills Minister Brendan O'Connor said the lack of skilled workers was one of Australia's "greatest economic challenges in decades".

He said the deal secured new places for 2023, but there would soon be talks about long-term funding.

"The OECD has said that Australia has the second highest labour shortage per capita in the developed world," Mr O'Connor said.

"We are not in any way under any illusion that the skills shortages will be resolved by this announcement, but this is a very significant first step to responding to this challenge."

The agreement is the first stage of delivering on the skills commitments in the federal Labor government's Made in Australia plan.

That includes Commonwealth funding of $5.8 million to improve TAFE facilities in Queensland.

Australian Associated Press