Decline in Hollywood Jobs Raises Concerns
In recent years, Hollywood has seen a significant decrease in job opportunities, prompting fears that Los Angeles’ vibrant entertainment industry may be facing a downturn reminiscent of what Detroit experienced with the auto industry.
The U.S. Department of Labor reports that employment in film and television has plummeted by around 30% since 2022. Experts suggest that Los Angeles might be heading down the same path as Detroit, known for its previous automotive boom.
According to recent statistics, as of March 2026, employment in the film and recording industry stands at 344,000, down from over 455,000 in July 2022.
During a March Congressional hearing, California Senator Adam Schiff engaged with industry leaders to rally support for a bill that aims to provide federal tax incentives for films produced in the United States.
Schiff highlighted that Los Angeles County has lost approximately 42,000 jobs related to entertainment within the last two years.
“These are valuable jobs, and we want to maintain them,” Schiff stated. “How to achieve that isn’t complicated. It’s mostly a draft and needs bipartisan backing. We’re striving for that support.”
Actor Noah Wyle, known for his role in the series The Pit, voiced his concerns about the job losses, emphasizing the necessity of incentives. “It’s tough for families; this situation shouldn’t lead to the downfall of an industry,” Wyle remarked. “Supporting these incentives is crucial as they represent an investment in our city’s most important resource—its people.”
The International Alliance of Theatrical Stage Employees (IATSE) noted that the most severe job losses are impacting behind-the-scenes workers. They indicated that employment for minimum wage roles has decreased by 45 million hours since 2022, while the United States’ share of global film production has dropped from 52% to 38%. Many lucrative productions have shifted to the UK.
IATSE Chairman Matthew D. Loeb expressed that the industry faces urgent challenges from international competition. “Foreign governments have successfully attracted film companies away from our shores through appealing tax incentives,” he stated.
Loeb added that many films originally set to debut in the U.S. are increasingly being filmed overseas, impacting American workers. “In just a few years, our members have lost tens of thousands of jobs, affecting countless families and small businesses across the nation.”
Multiple factors contribute to the decline, one being the rising production costs in Los Angeles, which have prompted studios to look towards filming in locations like New York, New Jersey, or even overseas where costs are lower. This has resulted in fewer shows and movies, as audience preferences shift toward platforms like YouTube and TikTok.
The rise of artificial intelligence is also affecting job opportunities, as studios adopt AI for tasks once handled by human workers. Furthermore, last year’s writers’ and actors’ strike added to the turmoil.
Despite these challenges, FilmLA, the city and county’s film office, reported some signs of improvement. They noted a slight uptick in soundstage filming for certain categories, indicating a possible recovery in the sector.
“This report reflects Los Angeles’ resilient production environment,” stated FilmLA spokesperson Philip Sokolowski. “Recent positive developments in film-friendly policies at both state and local levels suggest a potential growth in local production.”
Last year, California Governor Gavin Newsom introduced a $750 million tax credit program aimed at enticing film productions. However, experts warn this initiative may not be sufficient to halt the trend of productions leaving the state.
During the hearing, Schiff pointed out that, even with these incentives in place, film activity in Los Angeles last year was still down by 13.2% from July to September compared to the same period in 2024.
