Stability in Employability: Engineering vs. Banking/Finance

In my years as an engineer in New York, I've witnessed the fluctuations in finance, but never a

real down for engineering. While those in finance and banking have made more money, I've also seen a higher incidence of burnout.

Based on my experience, I don’t think either is significantly more stable than the other. However, there are some nuances to consider.

Banking and finance might be slightly disrupted by the rise of cryptocurrencies. But, there will always be a need for strategy to ensure financial health. Engineering, on the other hand, might have the upper hand because human creativity loves to build things, albeit imperfectly. This means there are numerous opportunities for engineers to innovate and improve existing products and services.

In today’s uncertain socioeconomic and geopolitical environment, all business sectors are fragile. We might say that change will happen more slowly in finance compared to engineering, and it’s precisely this change that can make people less stable.

Engineering: A More Secure Path?

Based on my assessment, engineering might have a slight edge. Engineering disciplines are more likely to provide long-term job security. Historically, the demand for engineers has remained consistent, even during economic downturns. Additionally, the value of their work tends to appreciate over time, as technology evolves and infrastructure grows.

However, this doesn’t mean that banking and finance are less stable. The supply and demand of jobs within these sectors can fluctuate wildly, and this can have a significant impact on employability. For instance, if more people enter a field than there are jobs available, the job market becomes oversaturated, potentially reducing stability.

Outliers and Uncertainty

It’s important to consider outliers. During the years when banking was doing well, a few large institutions like Wells Fargo faced severe backlash over unethical practices. This can dramatically affect the stability of employment within such organizations.

Another factor to consider is the distribution of income in the finance sector. In retail banking, for example, the income distribution is typically skewed, with a few highly paid individuals and many poorly paid employees. This disparity can create significant risk for those working in the middle tiers.

While the average stability might be similar, the potential for individual job security can vary widely based on the specific role and company. It’s crucial to evaluate the stability of a job based on the context of the company and the broader industry.

Conclusion

Ultimately, the answer to which field is more stable in terms of employability is not clear cut. The choice between engineering and banking/finance should be driven by passion and personal suitability. Always consider the potential for off-shoring and how likely it is for jobs to be moved to other countries. Both industries offer advantages and disadvantages in terms of job security, and the best choice depends on individual circumstances and career goals.