The German parliament on Friday approved a new immigration law designed to attract skilled workers to the country, which is suffering from an unprecedented labour shortage that is belabouring the economy.

The law - championed by the governing centre-left SPD, the liberal FDP and the Greens - garnered 388 yes votes, while 234 lawmakers voted against and 31 abstained.

A conservative parliamentary bloc made up of the opposition CDU and its Bavarian CSU sister party voted against the law, arguing that it would ease entry for unskilled labourers.

The far-right AfD party also voted against.

The law includes a points-based system that lowers entry hurdles for applicants according to their professional qualifications, age and language skills.

Earlier this year, the Association of German Chambers of Commerce and Industry (DIHK) said that more than half of Germany's companies were struggling to fill vacancies due to a lack of skilled workers.

The proportion of companies facing difficulties hiring was at its highest ever level, the DIHK found in its survey of 22,000 companies, with 53% reporting shortages. (Reporting by Holger Hansen, Writing by Friederike Heine, Editing by Anna Mackenzie)