Today Western European welfare states find themselves in a paradoxical situation: parts of working life are in need of labour that is difficult to find nationally – and internationally. While this is partly due to inflexible policies, it is also due to competition for labour among Western countries. At the same time, asylum seekers are constantly arriving, often to be joined by family members. The authorities are confronted with a mismatch between the supply of, and demand for, immigrants. The receiving countries do not get the labour they want, while many of those who actually come cannot be incorporated productively for various reasons. This situation illustrates the squeeze facing today’s welfare states – in this article exemplified with the Norwegian case – between the logic of humanitarian responsibilities and the concerns of the national economy.