Strikes Take Toll on Hollywood: About 17,000 Jobs Lost in California’s Entertainment Industry

The Hollywood strikes are taking a toll on jobs in California’s entertainment industry. The ongoing strikes by the Writers Guild of America and SAG-AFTRA are starting to have a significant impact on the labor pool in Hollywood.

What the BLS report shows

Recent figures from the U.S. Bureau of Labor Statistics, released on Friday, reveal that the film, TV, and music industries collectively lost 17,000 jobs last month. The broader sector encompassing the entertainment industry saw relatively little change in employment in August, with a decrease of 15,000 jobs.

The decline in employment within the motion picture and sound recording industries, accounting for a loss of 17,000 jobs, is directly attributed to the strike activity. Additionally, there were job losses in the telecommunications sector, totaling 4,000.

The wider August jobs picture

The BLS released this information as part of its August employment report. The overall U.S. unemployment rate increased from 3.5 percent to 3.8 percent. However, the report still showed stronger-than-expected job growth, with a net gain of 187,000 jobs.

The health care, leisure and hospitality, and construction sectors primarily led this growth. The rise in the unemployment rate came primarily from approximately 700,000 people entering the labor force.

How the Hollywood strikes unfolded

The BLS report is among the initial reliable sources to quantify the broader job impact of these strikes. The Writers Guild of America initiated their strike in May, with some film and TV production continuing in the following weeks. However, the SAG-AFTRA strike, which began in mid-July, appears to have had a more substantial impact on the industry.

Beyond the striking workers themselves, the strikes have also resulted in layoffs at various other businesses in Hollywood. These include production companies, talent agencies, and enterprises that traditionally relied on the Hollywood studio system for their income.

What the striking writers and actors want

The striking writers and actors are advocating for employment agreements that they believe will better serve their union members, offering more reliable income and a stronger safety net. Union leaders emphasize that they made the decision to strike with a deep understanding of the broader economic consequences.

On a related note, California State Treasurer Fiona Ma recently penned a letter to the studios, urging them to return to the negotiating table. In her letter, she stated, “The impact of these two strikes paralyzes Hollywood and reverberates across the state, affecting countless businesses, thousands of pension fund beneficiaries, and millions of Californians.” The BLS report now puts an early numerical estimate on the concerns surrounding the strike’s economic impact.

For more background, learn more about the 2023 Hollywood labor disputes on Wikipedia.

Key takeaways

• The U.S. Bureau of Labor Statistics says the film, TV, and music industries collectively lost 17,000 jobs last month.
• The 17,000-job decline in the motion picture and sound recording industries is directly attributed to strike activity.
• The overall U.S. unemployment rate rose from 3.5 percent to 3.8 percent, while the economy gained a net 187,000 jobs.
• The strikes have also led to layoffs at production companies, talent agencies, and other Hollywood businesses.
• California State Treasurer Fiona Ma urged the studios to return to the negotiating table.

Related reading on Creative Geniusess

Meanwhile, these related stories on Creative Geniusess follow the strikes.

• A Striking Industry: Hollywood’s Labor Dispute Spurs Closures and Actor Departures looks at an exodus of talent and permanent closures.
• Major Breakthrough Writers Set to Return to Work on 09/27/2023 After Lengthy Strike reports on writers returning after 148 days of striking.
• Hollywood Strike Resolved: SAG-AFTRA and Studios Reach Tentative Deal covers a preliminary agreement after 118 days of the actors guild being on strike.
• Tensions Rise as SAG-AFTRA Grants Interim Agreements Amid Hollywood Strikes examines solidarity among union members.