Study Documents Runaway Production

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California has lost about 36,000 jobs related to film and television production over the last 13 years, according to a study released Thursday from the Milken Institute.

The study, “Film Flight: Lost Production and Its Economic Impact on California,” found that 10,600 direct jobs in the film and television industry have been lost to other states and countries between 1997 and 2008. That in turn led to the loss of 25,500 jobs at companies that depend on film and TV, such as caterers.

In dollar terms, the study pegged the loss in wages during that period at $2.4 billion.

“Those benefits would still be here boosting the economy if the state had been able to maintain the share of industry employment it enjoyed in 1997,” the report stated. “Instead, these jobs have been going to places like New York, Vancouver, and even New Mexico, Louisiana and Georgia.

However, the numbers are smaller than many had expected given widely reported anecdotes of runaway production, especially considering a total state workforce of 18 million.

The study noted that a state tax credit enacted in 2009 for small productions appeared to be having a “positive effect” in slowing down or reversing the trend of runaway production. Film industry employment in Los Angeles County has risen by 20,000 jobs in the last year to about 140,000, according to figures released last week by the state Employment Development Department.

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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