Stunning chart shows shocking decline of one of America’s most iconic industries
A single graph has revealed the shocking decline of Hollywood’s film and entertainment industry.
Known as the entertainment capital of the US, television and film jobs in Los Angeles fell to 22 percent of the national total in August, compared to 33 percent just two years earlier, according to a new analysis of Bureau of Labor Statistics figures conducted by Patrick. Adler and Taner Osman of Westwood Economics & Planning Associates.
The reason for the shocking decline appears to be related to one key aspect: money.
After the 118-day SAG-AFTRA union strike in 2023, in which members demanded better pay and treatment, producers under new contracts were left with cheaper budgets and high labor costs.
Industry workers have also found other locations around the country and the world that will fulfill their dreams without destroying their wallets compared to expensive LA.
A new graph shows the startling truth for the entertainment industry in Hollywood and Los Angeles as employment has hit record lows, according to a survey of Bureau of Labor Statistics data conducted by Patrick Adler and Taner Osman of Westwood Economics & Planning Associates .
The Union SAG-AFTRA that lasted 118 days in 2023, where members threw studios into chaos over better wages, had serious consequences for the industry
Adler said Business insider that it was only after the strike that Tinseltown began to suffer and that the rest of the country began to benefit.
‘There really is a rise of the rest. You didn’t see this in the jobs data until shortly after the strikes. This is where things really start to improve,” he said.
The strike, which saw actors like Jane Fonda and Jack Black take to the streets in protest, allowed SAG-AFTRA to reach a tentative agreement for a new three-year deal with studios.
The new contract has made it difficult for producers to properly allocate money to films and television shows.
Although they have agreed to pay more money to workers, cuts have been made, forcing filmmakers to look elsewhere to make their projects at affordable prices.
Employees have also found other locations across the country and around the world that will make their dreams come true without destroying their wallets in expensive LA
Along with the directors and producers, actors and crew members have also moved to other states and countries – including Georgia, Arizona, Kentucky and even Canada – which have received major film incentives to tackle the industry.
New York, the next strongest market for entertainment jobs, has seen employment decline only slightly over the past two years.
The rest of the US appears to be booming, with jobs outside LA and NY making up 69 percent of the country’s total, up from 54 percent in 2022.
The analysis found that entertainment and film jobs across the country remained flat for most of 2022, before rising slightly the following year and then falling again due to the strike.
Now that the industry is back in business in LA, advocates have been trying to come up with a new plan to attract more film and TV projects.
FilmLA, a nonprofit public benefit organization based in the city, has suggested that the state’s film incentive program should be overhauled and redeveloped.
Right after Los Angeles came the second largest city known for its entertainment job market. In two years, manufacturing employment in New York City has fallen slightly
Due to the monumental strike, which saw iconic actors and actresses, including Jane Fonda (pictured) and Jack Black, take to the streets in protest, SAG-AFTRA reached a tentative agreement for a new three-year deal with studios.
The organization told Business Insider that a quarter of TV drama filming in the third quarter was supported by the film incentive program.
“California’s film incentive is a proven job creator and research shows it delivers a net positive return on every dollar awarded,” said Paul Audley, president of FilmLA.
Audley added that the current program does not have “funding and eligibility criteria that reflect industry outcomes in 2024.”
Although Hollywood is starting to lose its luster, another popular sector has blossomed over the past decade.
Instead, gaming and social media, or the “modern entertainment industry,” have taken over, with jobs increasing 149 percent between 2013 and 2024, according to Otis College report on the creative economy.