Hollywood’s Downturn Hits L.A.’s Entertainment Economy Hard
*Los Angeles is facing a dramatic shift in its entertainment economy. Once a global hub for film and TV, the city is now losing jobs, productions, and talent at an alarming rate. Industry experts say this crisis is unlike anything Hollywood has seen in decades.
After the 2023 writers’ and actors’ strikes, many expected a rebound. But by late 2025, the L.A. entertainment economy is still shrinking. Studios are cutting budgets, and productions are heading elsewhere, leaving behind empty sets and closed businesses.
Job Losses Crush L.A.’s Creative Middle Class
The most visible sign of collapse is in employment. L.A. County saw motion picture and sound recording jobs drop from about 142,000 in 2022 to around 100,000 by late 2024. That’s a massive hit to the backbone of Hollywood’s workforce.
Writing and acting roles are down nearly 40% compared to 2022. Nationally, actor employment fell 17% and writers 14% since May 2023. The result is a thinning creative middle class struggling to stay afloat in an industry that once offered steady careers.
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Production in L.A. Plummets Across Film and TV
FilmLA reported a more than 20% drop in on-location shoot days between early 2024 and early 2025. Q1 of 2025 logged only 5,295 shoot days, far below the previous year’s 6,823.
TV production in L.A. is now 36–58% lower than pre-pandemic levels. The city’s share of global scripted production fell from 21.9% in 2022 to 18.3% in 2024. That decline shows how far L.A. has fallen behind its competitors.
Runaway Productions Favor Cheaper, Incentivized Locations
Productions are fleeing Los Angeles for places with better tax breaks and lower costs. States like Georgia and New Mexico, and countries like the UK, Ireland, and Canada are gaining ground.
In 2024, only 157 scripted projects were filmed in L.A., while the UK saw a major increase in television production. As L.A. struggles with high housing, labor, and permit costs, other areas are stepping up with better infrastructure and cash incentives.
Business Closures Reveal Widespread Industry Pain
It’s not just sets and stages being affected. Ancillary businesses like catering, post-production, and scoring studios are shuttering. In 2025, scoring stage bookings dropped to just 11 days compared to 127 in 2022.
Mid-level creatives are leaving the city for more affordable lives elsewhere. Many are changing careers entirely. This exodus is hollowing out L.A.’s core entertainment community, forcing some to rely on help from groups like the Entertainment Community Fund.
Structural Problems Run Deeper Than the 2023 Strikes
The dual strikes in 2023 froze production, but the root issues are structural. The end of the streaming boom forced studios to cut content and staff, aiming for profit over growth.
Technological changes like AI, plus shorter series formats, are also slashing demand. High California costs and 2025 wildfires only added pressure, delaying shoots and draining resources.
Is Recovery Possible for L.A.’s Entertainment Economy?
There are signs of hope. California raised its annual film and TV tax credits to $750 million for 2024–2025. That move brought some indie projects back by late 2024, offering a glimmer of recovery.
Gov. Gavin Newsom called the industry “on life support” and pushed for stronger support. Still, analysts warn that many jobs may never return, and global production may remain decentralized for years to come.
Why L.A.’s Crisis Matters Beyond Hollywood
This is not just an economic problem—it’s a cultural one. L.A. built its identity around film and TV. As that foundation erodes, the entire city is feeling the loss.
From iconic studios to small businesses, the impact is being felt citywide. As the Guardian reported, Los Angeles is facing an “existential crisis” in its entertainment economy, reshaped by technology, globalization, and cost pressures.
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