Hollywood Job Crisis Worsens as Entertainment Industry Strike Causes $3B Economic Impact
The ongoing strikes in the entertainment industry have taken a severe toll on Hollywood, exacerbating the job crisis and causing a staggering $3 billion economic impact in California. With negotiations between the Writers Guild of America and the Alliance of Motion Pictures and Television Producers failing to yield a new contract, the situation has only worsened.
Josh Hornstein, a former rental agent at Quixote Studios, has been out of work since July when he was laid off. Reflecting on the dire situation, Hornstein said, Everyone is just trying to survive in this inferno. As a rental agent, Hornstein worked closely with studio departments and productions to ensure they had the necessary equipment. However, when the Writers Guild went on strike, everything came to a screeching halt. Everything was on fire. Jobs weren’t coming in. It got to the point where the company had 49 layoffs, explained Hornstein.
Adding to the industry’s woes, the Screen Actor Guild American Federation of Television and Radio Artist, the union representing actors, also went on strike in July. This dual strike has not only disrupted productions but has also upended thousands of jobs that support the entertainment industry.
The impact of the strikes goes beyond the entertainment industry itself. Todd Holmes, an associate professor of Entertainment Media Management at Cal State Northridge, estimates that the economic fallout has affected various related businesses, including caterers, florists, prop houses, and rental studios. According to Holmes, the economic cost is currently estimated at over $3 billion, and this number will continue to rise the longer the strike persists. Furthermore, the recovery period for the entertainment industry, which is still reeling from the effects of the COVID-19 shutdowns, may extend from three to six months. However, if the strike continues for another month or longer, the recovery period could extend closer to a year.
Amidst this crisis, individuals like Hornstein are doing their best to stay afloat. People like me and my roommate are looking for jobs and looking for anything that can come through, he said.
With the strikes causing such widespread disruption and economic hardship, the future of the entertainment industry remains uncertain. As the industry grapples with the impacts of both the strikes and the ongoing pandemic, it will require resilience, innovation, and support to bounce back and regain stability.
