In this essay I am going to discuss the different forms of discrimination and disadvantages of immigrant employees in the Swedish labor market. By using policy analysis, the purpose is to study the policies that contain the guidelines of which discrimination laws and other directives about discrimination are presented. This work is going to study how discrimination and racism occur in the Swedish labor market and how the government counter the disadvantages by acting in the policies they have established. The results show that immigrant and foreign groups in the labor market have disadvantages because of the discriminatory structure that display the employers’ underestimation of these groups by acting on the prejudices and discriminations that these groups are affected by. Problems like ethnic occupational segregation, ethnic hierarchies, hate crime and mainly ethnic discrimination are all independent factors that leads to the disadvantages displayed on the immigrant groups in the Swedish labor market. Salaries and level of education are also determining how far one employee can succeed and be compared with the respective native Swedish employee. The conclusion is, based on the discriminations policies and guidelines, that immigrant groups of Sweden are having a lower salary and definitely not gaining same amount of salary despite the same education and qualifications attained. Worst case is for the black Swedes which have the lowest income compared to other immigrants and mostly to native Swedes. By the help of the government would the qualitative differences between these groups be less defined because of the government influence in form of multicultural projects and activities, which allow immigrants to be established firmly into the Swedish society and hopefully into the labor market