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California’s film and television industry is facing a drastic decline, with around 40,000 jobs lost in 2023 due to strikes by writers and actors. Production activities dropped by 58% in the Greater Los Angeles area compared to 2021, raising concerns among industry professionals. Governor Gavin Newsom has proposed increasing tax credits to $750 million to revive local productions. However, skepticism surrounds California’s ability to compete with states and countries offering better incentives. Many workers are struggling with job instability and exploring alternative careers as the industry faces a potential ‘new normal.’

California is experiencing a significant downturn in its film and television industry as job losses continue to escalate following strikes by writers and actors earlier this year. The U.S. Bureau of Labor Statistics reported a staggering loss of approximately 40,000 jobs in the state’s entertainment sector during 2023 due to these strikes. This has led to heightened calls for increased tax incentives to revive local productions.

The decline in television production has been striking. According to data from FilmLA, there was a 58% drop in production activities in the Greater Los Angeles area since its peak in 2021. The number of shoot days for television productions has plummeted from 18,560 in 2021 to just 7,716 in 2024. Compounding this issue, on-location production in Los Angeles saw a 22.4% decrease in the first quarter of 2025 when compared to the same period in the previous year. This rapid decline has raised concerns among industry professionals and workers who rely heavily on consistent employment.

Industry expert Matthew Belloni noted the serious implications of this downturn, describing the current state of Hollywood as a “triage situation.” Productions are relocating to states and countries that extend more enticing tax incentives, adding to California’s woes. For instance, some European nations are offering tax incentives as high as 40% to attract film and television productions. In response to these challenges, California Governor Gavin Newsom has proposed an increase in the state’s annual film and television tax credits from $330 million to $750 million, aiming to stimulate local production.

Despite this proposal, skepticism looms over California’s capability to compete with alternative filming locations that offer superior incentives. Many crew members in the industry are left grappling with job instability. Phil Mangano, a film and television editor, revealed that he had to apply for a job at Costco amid financial concerns resulting from the current lack of work. Freelance workers like Heather Fink have also reported financial struggles, although Fink managed to secure a job with a long-running show.

The fallout from the strikes extends beyond just financial hardships. A growing number of crew members are pivoting to new careers or taking on side jobs to counteract the ongoing instability within their primary industry. While some individuals are finding temporary employment, numerous others remain jobless, facing significant challenges to their mental health amidst the uncertainty.

A report from Otis College underscored the current circumstance, revealing that jobs within California’s entertainment industry in 2024 were still 25% below the peak levels observed in 2022 right after pandemic-related disruptions. Moreover, shooting days in Los Angeles County fell by 42% compared to 2022, further emphasizing the issue of reduced activities in film and television production. Although the entertainment sector added nearly 15,000 jobs last year, this figure was insufficient to recover from the losses incurred during the strikes.

The industry may be settling into a potential “new normal” characterized by reduced production levels compared to those seen prior to the strikes. The continued shift toward filming in regions with more favorable tax policies is likely to perpetuate a decline in California-based work. Moreover, the decline in film and television employment has been quantified at roughly 20% compared to 2022.

In view of these challenges, a local initiative known as “Stay in L.A.” has been launched, aiming to promote emergency measures that would restore local filming and foster greater production activities within Los Angeles. This initiative reflects the urgency felt by industry professionals and community members alike, highlighting the critical need for action to reinvigorate the local entertainment economy.

California’s Film Industry Faces Severe Job Losses Amid Strikes

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Author: HERE Hollywood