I'm 32 and I was in a similar situation a few years ago, so I decided to do a masters with focus on embedded systems hoping that would help me land a job in that area. I've been applying for positions in the embedded industry (mostly entry-level) for the last 5 months and haven't gotten a single invitation to interview yet. The answers I get are similar to what the OP described.
At this point I'm feeling like those two years could have been better spent working on side projects.