Hollywood Disaster: Jobs Crater By 30% As LA's Entertainment Industry Destroys Itself With Politics

The entertainment industry has, for decades, been the driver of the Los Angeles economy. But after years of self-inflicted wounds driven by Hollywood's own incompetence, ego, arrogance, and the politicization of their films and content, a new report has revealed that there are concerning signs that jobs and careers in LA's signature industry are drying up.

The Wall Street Journal published a story this week about the concerning trends in Los Angeles, and just how drastic entertainment industry cuts have become. 

While the first few decades in Hollywood saw films shot almost exclusively in sound stages or locations in Southern California, other states and countries have been more aggressive with incentives and tax cuts to move productions, movies, and offices out of LA. Noah Wyle, called it "a near cratering of our once thriving industry" in recent witness testimony. 

And the actual numbers on employment are even worse. 

Since late 2022, the US Labor Department estimates that there's been a 30% drop in employment for the professions responsible for actually making and producing films and television. And it's creating concerns that LA is on its way to becoming the next Detroit, a town that saw its most important industry decline. 

The Writers Guild of America West building in Los Angeles, California, US on Monday, Sept. 25, 2023. Striking Hollywood screenwriters reached a tentative new labor agreement with studios including Walt Disney Co. and Netflix Inc., settling one of two walkouts that have shut down film and TV production. Photographer: Eric Thayer/Bloomberg via Getty Images

LA Destroyed Itself With Politics, Hypocrisy

As the Journal writes, "The nightmare scenario is playing out in Los Angeles, where a century-old entertainment economy is evaporating with no signs of a turnaround on the horizon. Many worry Hollywood will soon resemble Detroit after the decline of the auto industry, with corporate headquarters still located here, but little of the actual work."

Instead, movies and shows are being filmed in the United Kingdom, Canada, and Australia, where tax incentive programs can provide a 50% discount on production costs. As well as cheaper labor costs in places like Hungary.

The Journal found that on-location television production days in Los Angeles went from 18,560 in 2021 to 6,582 in 2025. 

So why did this happen? Well, ironically, despite their left-wing ideology, entertainment executives are the most capitalist members of society. Instead of helping employees and locals in LA, they chase wherever they can save money. If it sounds hypocritical, it's because it is. 

Studios also gave control of the creative process over to ideologues, who view political activism as their calling, not quality storytelling. Unsurprisingly, it hasn't worked. Box office revenues have plummeted, leading to fewer movies starting production. Streaming shows, once viewed as the savior of the industry, have also declined, as audiences tuned out of atrocious projects like "She-Hulk," "The Acolyte," and "Star Trek: Starfleet Academy." 

Put it all together, and LA has the largest population loss of any county in the country. 

It's just one of many problems that the industry has inflicted upon itself. Hypocrisy, politicization, activism, and short-sighted policy. And LA, while it might never be Detroit because of other advantages such as weather and recreational opportunity, it may not be that far off. A stunning outcome considering where it was not too long ago.