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California’s Film Industry Faces Major Job Losses amid Strikes

Amidst the ongoing strikes, Hollywood productions face significant challenges.

News Summary

California’s film and television industry is suffering a dramatic downturn, losing approximately 40,000 jobs in 2023 primarily due to strikes by writers and actors. With a 58% decrease in television production since 2021, the situation remains critical, prompting discussions for enhanced tax incentives to revive the local industry. Governor Gavin Newsom has proposed increasing film and television tax credits to attract productions back to California. As job opportunities dwindle, many industry workers are exploring new careers to deal with the ongoing instability in Hollywood.

California is experiencing a significant downturn in its film and television industry, with approximately 40,000 jobs lost in 2023 due to strikes by writers and actors. This alarming trend represents a 58% decline in television production in the greater Los Angeles area since its peak in 2021, drastically affecting the livelihoods of those working in Hollywood.

Data from the U.S. Bureau of Labor Statistics highlights that the number of shoot days for television production fell from 18,560 in 2021 to 7,716 in 2024, reflecting a sharp decline in on-location production by 22.4% in the first quarter of 2025 compared to the same period the previous year. The concerning drop in production activity has sparked discussions around the need for increased tax incentives to prevent further job losses in the state.

Amidst the crisis, California Governor Gavin Newsom has proposed raising the state’s annual film and television tax credits from $330 million to $750 million. This proposal aims to reverse the ongoing decline and attract more productions back to California, which has seen many move to locations offering more substantial tax breaks, some as high as 40% from European countries.

Matthew Belloni, an industry analyst, describes the situation as a “triage situation,” indicating a critical need for emergency measures to revive the local industry. Despite the initiatives proposed at the state level, skepticism remains regarding California’s capacity to offer sufficient incentives to compete with other jurisdictions.

Workers in Hollywood are facing severe financial concerns. For instance, Phil Mangano, a film and television editor, has had to apply for jobs outside the industry due to dwindling opportunities. Similarly, Heather Fink, a freelance sound utility worker, experienced significant financial struggles after the strikes, although she managed to secure a role with the popular show “Grey’s Anatomy.” Many in the industry are now exploring new careers or taking on side jobs to cope with the ongoing instability and financial challenges.

While the Otis College report reveals that the entertainment industry added nearly 15,000 jobs last year, this is not enough to recoup from the losses sustained during the strikes, with employment still 25% below pre-pandemic levels. The overall number of filming days has decreased by 42% compared to 2022, indicating a continuing trend away from California-based production efforts.

Many industry professionals remain without work and are grappling with mental health challenges amid the ongoing uncertainty. The industry now appears to be settling into a “new normal,” characterized by lower production levels compared to those prior to the strikes. In light of these challenges, a local initiative called “Stay in L.A.” has emerged, pushing for measures to encourage emergency interventions to restore local filming activities and promote more on-site production in Los Angeles.

The ongoing situation reflects a larger trend in the entertainment industry, where productions are increasingly opting for locations with more generous tax incentives, thus threatening California’s position as a leading hub for film and television. As the industry continues to evolve, stakeholders are concerned about maintaining the viability and growth of California’s creative sector, which has long been a driving force in the region’s economy.