Hollywood, once the shining symbol of the global entertainment industry, is facing a major job crisis. As more film productions leave California for cheaper and more tax-friendly locations, the ripple effects are being felt across thousands of jobs. Industry experts say the situation has become one of the worst in recent memory—comparable only to the pandemic shutdowns of 2020.
Several of 2025’s biggest movie productions are now being filmed outside of California. Rising production costs, labor disruptions, and more appealing tax incentives elsewhere are pulling projects to states like Georgia, Texas, and Tennessee—and even overseas.
What’s being called a “mass migration” is impacting everything from major studio projects to mid-sized streaming series. Industry professionals say this shift is putting the state’s middle-class entertainment workforce at serious risk.
According to FilmLA, the nonprofit that tracks local filming activity, the first quarter of 2025 saw a 22.4% decline in on-location filming compared to last year. It marks one of the worst periods on record—just slightly better than the catastrophic decline during the early months of the pandemic.
Experts describe the trend as alarming, with no quick rebound in sight unless California changes how it competes for productions.
The people feeling this downturn most are not movie stars or high-level executives, but rather the everyday professionals who make productions happen: set designers, electricians, camera operators, costume workers, grips, makeup artists, and drivers.
“It used to be five days of work a week, now I’m lucky to get one or two,” said one veteran crew member. Many are now taking on multiple jobs or leaving the industry altogether due to the lack of consistent work.
Some production workers have relocated to states offering better opportunities. Others are stuck in California, unable to move because of family commitments, mortgages, or other financial responsibilities.
West Bailey, who owns a studio support company that provides lighting and rigging equipment, said his business has dropped by 40% over the last two years.
“We’ve downsized staff and are barely scraping by,” Bailey explained. “This used to be a business where people could count on a steady living. That’s not the case anymore.”
At the center of the issue is California’s film and TV tax credit program. Critics argue that it is not competitive with other states or countries, many of which offer better deals and fewer restrictions to filmmakers.
To address this, Governor Gavin Newsom recently proposed a new $750 million-a-year tax credit plan, along with two companion bills now moving through the state legislature. The goal is to update and expand the current program so it can once again attract big-budget productions.
The entertainment industry has historically been one of California’s strongest economic pillars, offering high-quality jobs across a broad range of skill levels. But the continued flight of productions threatens to unravel that stability.
“There’s still a strong audience for film and television,” said one analyst. “The demand hasn’t gone away. But the industry’s geographic center is shifting—and fast.”
Some remain hopeful that California will step up and reclaim its title as the entertainment capital of the world. Others fear the worst: that Los Angeles could become the next Detroit, a former giant hollowed out by decades of economic shifts.
For now, the studios may still carry the Hollywood name—but much of the work is happening somewhere else.
