The Struggles Have Become a Painful, Recurring Story Line in Hollywood
The economic outlook of the Los Angeles area, with a population larger than most states, has been clouded in recent years by events that have upended the entertainment industry. Market saturation led to a shakeout among direct-to-streaming providers. The Covid-19 pandemic shut down production. And strikes by writers and actors last year had a lasting impact.
When the strikes ended, workers in Hollywood had hoped their schedules would finally fill up again. But for many, things only got worse. In the third quarter of 2024, film production levels declined by 5 percent from the same stretch in 2023, according to a report from FilmLA, the official film office of the City and County of Los Angeles.
Since May 2023, when the Writers Guild of America strike began, motion picture and sound recording jobs in the Los Angeles area have declined 15 percent, according to the Bureau of Labor Statistics. Makeup artist Deborah Huss Humphries, a 30-year veteran of the industry, has seen the industry evolve, with productions initially leaving the city, then the state, and eventually going overseas.
With the cost of living growing in L.A. relative to other locations, studio executives have been re-evaluating their costs and testing filming in other locations, such as New Mexico and Georgia. As a result, many workers are struggling to make ends meet, with some dipping into their savings to cover expenses. A recent report found that the film and TV industries made up 64 percent of Los Angeles County’s broader entertainment industry in 2013, but that portion has fallen to 52 percent.
To mitigate the decline, Gov. Gavin Newsom and Mayor Karen Bass of Los Angeles have proposed more than doubling the state’s film tax incentive program to $750 million annually. The plan, if approved, could take effect in July. Some 38 states offer some form of tax incentive, including Georgia, which has an uncapped tax incentive program that has given billions of dollars to Hollywood studios. New Mexico has also been successful in luring productions with tax incentives and its proximity to California.
Vince Gervasi, president of Triscenic Production Services, fears that too much damage has already been done, and some workers have been decimated financially. For now, some, like Mrs. Huss Humphries, are accepting a new reality and working to support their colleagues through a biweekly food bank. As the struggles continue, the region’s economy feels the pain.