Hollywood Film & TV Jobs Down 20% — Strikes Only Played A Small Part

WGA and SAG-AFTRA picketers outside Netflix offices in L.A. on July 14, Courtesy of TIFFANY TAYLOR/THR STAFF.

Despite the now-resolved writers and actors strikes that shut down Hollywood productions for several months, according to a new study, the loss of tens of thousands of jobs this year appears to be part of a larger economic situation.

“Entertainment Industry employment in Los Angeles this year peaked in April, when 142,652 workers were employed by the Industry,” says Otis College of Art and Design’s “The Day After Tomorrow” study, produced by Westwood Economics and Planning Associates. “As of October, there were 24,799 fewer workers employed by the Industry than there were in April (17% drop).”

Actors Adam Sandler and Ben Stiller among the protests, Courtesy of GOTHAM/GC IMAGES.

The report released Thursday estimates that Greater Los Angeles Entertainment Industry workers lost roughly $1.4 billion in wages between April and September 2023 — 0.5% of the industry’s annual economic activity.

During the WGA and SAG-AFTRA strikes, which ended in late September, the California economy overall took a $6.5 billion hit and over 45,000 jobs were lost from when the 12,000-strong writer’s guild hit the picket lines in early May, followed by the 160,000-strong actor’s guild in July (Bureau of Labor Statistics). This was the largest walkout in four decades.

“Beyond the short-term impact, the strikes should be understood within the context of a broader restructuring of the Industry: employment was contracting in the Industry even before the strikes,” the Otis College report declares. “Employment in the Industry peaked in May of 2016, and reached nearly the same level in August of 2022. Since this time, employment has shrunk by 26%”.

Aubrey Plaza joining the strike, Courtesy of JACOB LEE GREEN/SIPA USA/AP.

The report also suggests that everything won’t be returning to “normal,” but rather negatively impacted the industry. However, Patrick Adler, Principal at Westwood Economics and Planning Associates and Assistant Professor at the University of Hong Kong, says “normal” had left the industry way before the strikes started

“The end of the strikes means there’s a possibility of reversing the steady and steep employment declines of the last year,” Dr. Adler told Deadline. “But it’s an open question if all of the lost jobs over the past year are coming back. — We show that the industry’s business model is at a serious inflection point. Fundamental questions about how much content will be produced and how it will be paid for are less resolved now than they were ahead of the last SAG-AFTRA deal. The industry’s employment level hangs in the balance. We should resist the urge to see ratification as an end to some great reckoning.”

He continued:

“Almost all of Hollywood production is controlled by publicly traded companies, and Wall Street has exerted more pressure on the industry since interest rates spiked in 2022. Basically, one dollar of production money is much more expensive today than it was in 2021, and so the street expects higher return.”

In regards to streaming services as revenue streams, the 18-page report is quoted: “The bigger picture reveals that Peak TV, rather than the strikes, represents the more enduring threat to employment in the Industry. An arms race among streaming platforms heralded a surge in production between 2016 and 2022, as platforms pursued subscriber growth at all costs. As this business model has transitioned into one which emphasizes profitability and sustainability, we have likely reached the highwater mark in production.”

The WGA and SAG-AFTRA have reached new contracts with the studios, and IATSE and the Teamsters will be entering negotiations with the AMPTP next year.