- by cnn
- 02 Dec 2023
As studios and writers return to the bargaining table Wednesday, the economic impact of the months-long writers' and actors' strikes has surpassed a staggering $5 billion, and the pain is increasingly being felt across multiple industries, according to economists.
In New York alone, the disruption of 11 major productions, which applied for the state's tax credit program, has resulted in a loss of $1.3 billion and 17,000 hires in the state, according to Empire State Development.
Across the U.S., "we are definitely moving towards $6 billion in costs, but I cannot say for certain we are there yet," says Kevin Klowden, the Milken Institute's chief global strategist. Klowden says major impacts are coming from a rise in evictions, which is also tied to the end of eviction moratoriums in California. Klowden said he's also observing a lot of staffing cuts in restaurants and service firms, as well as expenditure cutbacks at studios.
Todd Holmes, an associate professor of entertainment media management at Cal State Northridge, points to the U.S. Bureau of Labor and Statistics (BLS), which recorded a drop of 34,800 employees in the motion picture and sound recording industries between May and August.
"There's no doubt that a lot of that is due to the strikes," Holmes says, adding that there could be more strike-related losses recorded in other BLS categories, including those in makeup, catering, custodial work, and other businesses that support productions. "It's been a real mess, and it just gets worse each day as the strikes continue," he added.
Many job losses are from entertainment industry adjacent businesses like History for Hire, a prop shop whose owner, Pam Elyea, feels the ripple effect on those that rely on the entertainment industry.
Elyea's company works to dress the sets of movies, TV shows, commercials and music videos, renting out everything from sports equipment to battle gear for period pieces.
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