Generally, immigrants face different challenges adapting to their new environment while starting a new life in the new environment. One of these problems is related to employment as they find it difficult finding jobs in their host countries. A number of them are often jobless or having jobs that do not correspond with their educational qualification. This is one of the factors that influence the earnings of immigrants in the Swedish labour market. This study focused on the factors influencing the underutilization of immigrant’s foreign educational credentials in the Swedish labour market. The study is based on human capital theory, cultural shock theory and discrimination theory. Through qualitative research design, rich detailed data about the phenomenon was collected from participants that participated in the study. Findings of the study revealed that the two major factors that influence the underutilization of immigrant’s foreign educational credential in the Swedish labour market are structural factors and individual factors (lack of social network with Swedish natives, inability to fluently communicate in Swedish, and loss of professional knowledge due to lack of practice).