Hollywood loses 42,000 jobs as film productions leave Los Angeles
Box office hits are returning, but Los Angeles has lost tens of thousands of entertainment jobs as studios move productions elsewhere.
Market · Source: Commercial Observer
What happened
The movie industry had a strong summer at the box office. Ticket sales reached 4.76 billion dollars, a 26 percent increase from last year. Five films earned over a billion dollars. However, this financial success is not creating jobs for workers in Los Angeles. The physical workplace of Hollywood is shrinking rapidly.
Los Angeles County lost 42,000 entertainment jobs over the last two years. Total film and television employment in the United States dropped from a peak of over 455,000 in July 2022 to just 344,000 in March 2026. The United States also saw its share of global production fall from 52 percent to 38 percent. In 2025, 45 percent of all American films and scripted television shows were shot outside the country.
Studios are leaving California to find cheaper production costs and better tax incentives in places like the United Kingdom and Canada. The 2023 strikes and the rise of artificial intelligence also contributed to the decline. California expanded its film tax credit program to 750 million dollars a year to retain projects, and Congress is drafting a bill for a 20 percent federal incentive. However, experts and studio owners note these credits have not brought enough filming back to offset the massive job losses. Television production remains down 50 percent from its five-year average.
By the numbers
- 42,000 — entertainment jobs lost in Los Angeles County over the last two years
- 344,000 — motion picture and sound recording jobs in the US as of March 2026
- 45% — share of US films and scripted TV shows shot outside the United States in 2025
- $750 million — annual California tax credit program for film and television
- 50% — drop in television shoot days compared to the five-year average
Why it matters
The entertainment industry is fundamentally changing where and how it hires workers. Traditional studio jobs in Los Angeles are disappearing as productions move to places like the United Kingdom, Canada, and states with higher tax incentives. Job seekers can no longer rely on a centralized Hollywood ecosystem for steady employment. The industry is also making fewer traditional shows as audiences shift their attention to platforms like YouTube and TikTok.
This shift creates a severe ripple effect across local real estate and small businesses. Soundstages in Los Angeles are sitting empty, and major studio landlords are reporting massive financial losses. Lenders recently took control of the 1.2 million-square-foot Radford Studio Center. As the traditional industry shrinks, workers are forced to take survival jobs outside their field or relocate to new production hubs just to find work.
Who this hits
Below-the-line crew members
Production crews have lost 45 million work hours since 2022. These workers face severe economic hardship as major studio projects move overseas to take advantage of aggressive foreign subsidies.
Digital and independent creators
Small crews are seeing some new opportunities in Los Angeles as traditional formats decline. Digital production shoot days jumped 47 percent in the second quarter as studios book more online creators.
Studio real estate owners
Landlords who bought physical lots before the pandemic are struggling to find tenants. Hudson Pacific Properties posted a 105 million dollar loss, and other famed production complexes are currently up for sale.
Reality television workers
Reality television was once considered a safe bet for steady local work. However, reality production dropped 12 percent in the last year as more of these shows shoot overseas.
What to do this week
- Look for roles in digital content creation and short-form video, which are growing faster than traditional television.
- Expand your job search to production hubs outside of California, such as Atlanta, New York, or international markets.
- Target independent film projects that utilize new low-impact permits for small crews in Los Angeles.
- Diversify your skills to include high-end commercial work or technical roles in virtual production.
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My take
I see a clear disconnect between box office success and actual job creation in Hollywood. Tax incentives alone cannot force an industry to stay where costs are too high. If you want to work in entertainment, you have to follow the cameras to new locations or pivot to digital content.