The job market works like any other typical market. It chiefly depends on supply and demand dynamics. When the demand for a certain skill set is high, wages are generally high. This attracts more people to enter that profession, which increases supply and, eventually, wages flatten. Too many people in a profession eventually drive wages down, which makes the industry less attractive.
This dynamic can be observed across professions, from doctors to engineers to carpenters. In any particular trade, only a few people earn most of the money. Again, this phenomenon, which is commonly referred to as the Pareto principle, can be observed. So, we see that 20% of the lawyers in town earn 80% of the available revenues in the legal industry. The same thing applies to doctors, therapists, bankers, etc.
In any profession, it pays to be among the top 20% who earn the most money. You do this by offering excellent services to as many people as possible and by being difficult to replace. This is the law of compensation, which works in most trades. People will go to the lawyer who solves their problems fastest and with a great attitude. People will pay huge sums to the doctor who can make them feel better. People will go back to the mechanic who fixes their car at a reasonable cost without cheating them.
The best-paying trades are those with high demand and low supply. Imagine being the only doctor in town. You are very much in demand, and your skill set can’t be replicated easily. You can identify such trades from the difficulty of acquiring the required knowledge, experience, and skills. To become a neurosurgeon, it takes years of gruelling medical school, which most people simply can’t bear. These rare professions are also typically regulated by law. To practice law, you need to be registered by the law council and pass some difficult exams. This greatly limits the supply, which increases wages.
You can limit the supply of your trade by moving to an area with less competition. A good example is the home care industry or maids in Uganda. Maids in Uganda are typically paid below minimum wage. However, many have found better employment conditions in Saudi Arabia, often earning about ten times what they earn at home. Of course, some have had to endure difficult working conditions, but this is the nature of capitalism, which often rewards risk-takers.
It also pays to specialize. The neurosurgeon earns much more than the general doctor. The Chief Economist earns much more than the bank teller. Specialization generally comes through experience and education. So it pays to stay with the same thing for some time instead of switching jobs frequently. Experience and knowledge compound better with time.
If possible become multi skilled. This enables you to operate in two or more industries at the same time. For instance I am both an Engineer and an Accountant and I have held roles across the spectrum. Alternatively specialise in one industry but acquire general knowledge across the board. For example if you are an Engineer acquire an MBA as well. This will help you to climb the career ladder faster.
The self-employed professional seems to earn more than their counterparts who are employed. The lawyer who owns a law firm earns more than the associate. This is because the partner of the firm has gotten the magic of capital to work for them. Any professional who deploys both their labour and the tools of capital will propel themselves to great heights.
We also notice that the highest-paying jobs seem to evolve with time and changes in technology. Being a horse rider was in vogue until the car was invented. The invention of electricity created the electrical engineering profession. Advances in computer technology have created demand for all sorts of ICT professionals. The rise of Artificial intelligence is going to destroy some jobs and create new ones at the same time. A prudent professional would be wise to study the changes in the world so they can position themselves appropriately.
Of course, in any market, we see imperfections. The job doesn’t always go to the most competent person, and qualified people may stay unemployed for ages. You can be a qualified accountant, but the market is only looking for plumbers. We may also see very low wages for highly skilled people. Some of these issues are systematic issues that can only be solved at the policy level. As an individual, you can protect yourself by studying the market and only entering fields with favorable prospects.
The best job, however, is one which is a combination of your unique interests, passions, experience, knowledge, and skills, serving an interested and appreciative clientele. Such a job is unique to you and can’t be replicated by anyone. This job has no clear job description, and only you can perform it. This job is created by following your unique interests and building a career out of it. Think of the creative geniuses and artists we have seen. No one taught Thomas Edison how to create a light bulb. No one gave Bill Gates a job description on how to build Microsoft. These geniuses followed their curiosity and created amazing products for humanity. Each one of us has been blessed with this potentiality, and it is up to us to express it fully.
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