A single chart has revealed the shocking decline of the film and entertainment industry in Hollywood.
Known as the entertainment capital of the U.S., television and film jobs in Los Angeles dropped to 22 percent of the nationwide total in August, compared to 33 percent just two years prior, 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 linked to one key aspect: Money.
Following the 118-day SAG-AFTRA union strike in 2023, during which members demanded better pay and treatment, producers have been left with cheaper budgets and high labor costs under new contracts.
Industry workers have also found other locations across the country and world that will support their dreams without destroying their pockets compared to high-priced LA.
A new chart shows the astonishing truth for the entertainment industry in Hollywood, Los Angeles as jobs have hit an all time low, according to a study of Bureau of Labor Statistics figures conducted by Patrick Adler and Taner Osman of Westwood Economics & Planning Associates
The Union SAG-AFTRA that lasted 118 days in 2023, where members threatened studios into chaos over better pay, severely impacted the industry
Adler told Business Insider that it really wasnt until after the strike that Tinseltowns started to suffer and the rest of the country started to benefit.
There really is a rise of the rest. You really didnt see this in the jobs data until a little bit after the strikes. This is where things are really starting to pick up, he said.
The strike, which saw actors including Jane Fonda and Jack Black take to the street in protest, allowed SAG-AFTRA to reach a tentative agreement for a new three-year deal with studios.
The new contract has made it hard for producers to properly allocate funds for movies and television shows.
While they have agreed to pay more money to workers, their budgets have been cut, forcing filmmakers to look elsewhere to create their projects at affordable prices.
Workers have also found other locations across the country and the world that will support their dreams without destroying their pockets in high-priced LA
Along with the directors and producers, actors and crew members have also relocated to other states and countries - including Georgia, Arizona, Kentucky, and even Canada - that have been granted large film incentives to take on the industry.
New York, the next strongest market for jobs in entertainment, has seen employment drop only slightly over the past two years.
The rest of the U.S. has seemed to thrive, with jobs outside LA and NY making up 69 percent of the countrys total, compared to 54 percent in 2022.
The analysis showed that for most of 2022, entertainment and film jobs nationwide remained flat before rising a bit the following year, then dropping back down because of the strike.
Now that the industry is back up and running in LA, advocates have been trying to pioneer a new plan to attract more film and TV projects.
FilmLA, a not-for-profit public benefit group based in the city, has suggested that the states film-incentive program needs to be reviewed and redeveloped.
Right behind Los Angeles came the second largest city known for its entertainment job market. In two years time, New York City employment in the industry has dropped slightly
Because of the monumental strike, that saw iconic actors and actresses, including Jane Fonda (pictured), and Jack Black, take to the street 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 shoots in the third quarter were supported by the film-incentive program.
Californias film incentive is a proven jobs creator that studies show provides a net positive return on every allocated dollar, Paul Audley, FilmLAs president, said.
Audley added that the current program does not have funding and eligibility criteria that reflect the outputs of the industry in 2024.
Despite Hollywood starting to lose its luster, another popular sector has blossomed in the past decade.
Instead, gaming and social media, or the modern entertainment industry, has taken over, with jobs rising 149 percent from 2013-2024, according to Otis College Report on the Creative Economy.