I have the option to either do a one-year Masters in Economics or a one-year vocational diploma in Embedded Systems Development (C/C++, CPU programming, hardware, operation systems, architecture etc).
The diploma includes a 6-week internship.
The Masters has the expected courses in advanced microeconomics, econometrics etc. Plus a thesis.

My previous studies:
Bachelor of International Business/Bachelor of Commerce (Economics).
Diploma in Programming (C/C++, SQL, Visual Basic)...this was a long time ago.
Previous jobs: nothing that has much to do with either of the above.

I'm at my wits end as to what I should choose, I'm desperate enough to just flip a coin.
I've done the whole 'pro vs cons' list but it ended up useless, as they tend to.

The main consideration for me is my age, at 35 I want a feasible career change.
I know that here in Sweden 'age' is a big hindrance for getting into the IT field, its a fact, so that's an obvious concern.
It feels pointless to do the Diploma and still end up in sales, a job I don't really need this diploma for and a job I could get with the Masters degree anyway.

Any kind of constructive angle or perspective is much appreciated, maybe you'll mention something I haven't considered. Like I said, age is my biggest concern, I have studied programming and economics before.

Edit: I've enjoyed studying economics and programming to an equal degree...worth mentioning perhaps. They both have characteristics that were fun and interesting to learn.

Depends on which offers you better prospects to get hired. Here in Romania IT clearly is better. Economics is regarded as fluff and most graduates work either as bank tellers or in a completely different domain...

I don't know about sweden, but in here germany IT is the way better choice.

I'll be blunt. I think neither is best, if it's career change you want and need, then don't study anymore at all...

I was in a kind of similar situation to you though at a younger age, as I studied Physics and then never did anything else related. So I started late compared to peers in my current environment, can relate to your implied concerns, and sympathize with your situation.

If you kind of see my point I'll be more than happy to talk a bit and give you ideas to chew on. That's predicated on your agreement that your Economy or IT choice is kind of a trap...

I think you know what I'm implying and is likely better long term, but having kind of been there, well, I was quite afraid what would happen, yet it turned out well...

Depends how good are you at subject.
Somethings are beautiful as a hobby, but a painful as a profession.
If you are good at economics and don't bother about your creativity then go for economics.
Look for current trends in your country.
If there is less competition in technical field then go for it.
I would suggest you to pay a small visit to nearby college or school and just have a small chat with a professor.
Sometimes they give an honest opinion.
My personal opinion is take admission in diploma in Embedded Systems Development.
You may kickstart your own business later.

Learn what you're interested in, not what you think will get you a job. Also note that whatever you learn will have to be something you study on your own. College isn't going to teach you anything, but they'll take all of the credit once you pass.

True.

Thanks for the input guys, I've gotten some new perspectives already.
I've talked to my family and friends but their advice is split 50/50.

IT.

If you have bachelor degree in economics it is enough for all but most advanced and fancy positions on the market (which you will not get right after study). On the other hand if you start learning new discipline - you will get great flexibility After you graduate - I would recommend looking for a job which somehow connects IT&economics (let's say you can program micro chips on credit cards). Interdisciplinarity is the key here. And just one advice: you should take some additional courses on SQL and various database systems. It's very useful nowadays.

EDIT: Moreover - take a look on banking sector. People are being replaced by IT systems at a great rate. Job's market for degree in economics is shrinking. And if you think about a future - do you expect there will be more computers in our life - or less?

Sadly, unemployment has made me feel like I'm more or less forced to add something to my CV, something new and more relevant than my dusty old certificates.

The other idea I have is to start my own business or franchise together with my brother, who is very keen on starting up a business. I really like the idea of being my own boss but the whole idea of starting a business is very intimating.

Learning Economics as a science is for scientists and scientists only. No econ-related job other than university professor requires anything more than what you can pick up by reading random crap. Remember that economic decisions are essentially sorcery, and when you're called to make one and justify it, any justification you might provide will be treated by your business bosses as such. You can't prove yourself right in the Greek sense and have your work stand on its own merits in business; if you make a quality scientific model and correctly point out the flaws in someone else's model, no one without a solid background in econ will be able to tell whether you are actually correct or honestly wrong or an ass-pulling hack.

Also, micro is masturbation.

So unless you want to be Krugman (note that age is also a hindrance in building a university career from the ground up), go for programming.

go IT, economics is already perverted by politicians and states beyond the point of no return, with no chance whatsoever to return to the simple and healthy teachings of the austrian school and the libertarian ways.

Why these two particular options?

Anyway, I'm leaning towards the programming course, simply because it looks more practical for a job and includes internship, which would mean (I assume) you will be familiar with a least one company in the field.

Do you have any idea what other companies are in this field and have any in mind where you might want to work?

Hmmm... Are you not getting to interviews at all? Not being chosen? What kind of positions have you been applying for? Feel free to PM if you don't want it to be too public.

You see, I wonder how seriously, if at all, you have considered international moves or working for megacorps ... my experience in Poland is your skills would land you a job easy, surely not greatly paid, but then... that is the main obstacle right there with unemployment. Expectations not aligned with market values... My point being I can see several competitive advantages you would have that would not require further study, and it's a starting point, not an end point to a career.

Starting your own business is both much easier and harder than usually considered. Easier because you set the rules, no need to adjust to org structures. Harder because you depend on the market absolutely, no cushion of a constant paycheck if things go a bit ooopsie.

Anyway, in furtherance to what others have been saying. IT is probably the broader option, just it is a very competitive job market as you have mentioned yourself. Sure, there is an internship include, but do you have metrics for intern retention by the diploma provider? That said, despite most here pointing to IT (if you put a gun to my head I would as well tell you to go IT) consider you are on a forum where there is a bias towards IT backgrounds anyway.

For your situation, I would go with the IT certificate, because IT employers are looking for familiarity with the newest software/hardware. It's almost "flavor-of-the-month", unlike economics.

(Also, PM sent.)