This study focuses on economic integration of foreign-born men and women from Somalia and the former Yugoslavia in Sweden and in the Netherlands. Many welfare states of Western Europe are experiencing that some groups of immigrants have had a hard time to integrating economically. This has been dictated by high unemployment rates and low incomes. The aim of this thesis is therefore to describe the migration and the economic integration for the chosen groups and countries and to analyse factors that can have an effect on the immigrants’ labour market situation. Thesis also investigates institutional factors that can contribute to either positive or negative immigrant economic integration. For the purpose of gaining a deeper understanding of the subject a comparative method is used, which is characterised by both descriptive and explanatory analysis on immigrant economic integration. The analysis is based on literature, earlier studies and statistical data. The theories used for explaining labour market integration are human capital theory, social capital theory as well as the destination countries institutional factors, specifically the immigration and integration policies. It was found that the Yugoslavian immigrant groups had a positive labour market attachment when compared to the Somali immigrant groups. The Dutch former Yugoslavs have the best labour market success. Out of the examined Somalis; the Swedish Somalis had the best labour market success while the Dutch Somalis have shown the poorest labour market attachment. It was also found that, especially, the relation between the degrees of education has an effect on the immigrants’ economic integration. Furthermore, year of migration and age have also shown to have an effect on the investigated immigrants’ economic integration. The examined institutional factors, on the other hand, were not believed to have any direct impact on the immigrants’ labour market success.