The US jobs market continued to cool in August as the ongoing double strike in Hollywood last month impacted the jobs report for the first time.
According to data released Friday morning by the Bureau of Labor Statistics, employment in the film and sound recording industry fell by 17,000 “due to strike activity”.
The writers’ strike enters its fifth month, while the actors picket their second month.
An end to the double work stop is currently not in sight after the studio negotiations stalled last week. At the time, the Writers Guild of America (WGA) criticized the studios’ counter-proposal and complained that it didn’t even come close to meeting the authors’ demands. Talks have not resumed since then.
Striking writers and actors demonstrate in front of Paramount Studios in Los Angeles on Friday, July 14, 2023. (` Photo/Chris Pizzello, file)
Industry observers say the “double” work stoppage has already had severe economic repercussions. According to estimates by the Los Angeles County Economic Development Corp. the 2007-2008 strike cost the Los Angeles County economy a whopping $2.5 billion. This time, that will likely double.
Kevin Klowden, chief global strategist at the Milken Institute, estimated that the current strikes will soon cost the economy over $5 billion and revised upwards his previous estimate of $4 billion.
“The biggest thing we really consider is the lost wages,” Klowden said in an interview with Yahoo Finance Live this week. Klowden noted that California will be affected, but other popular filming locations such as New York, Atlanta, Albuquerque and Pittsburgh will also be affected.
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Overall, the US economy added 187,000 jobs in August, while unemployment unexpectedly rose to 3.8%, up from 3.5% in the previous month and the highest since February 2022.
Greg Daco, EY’s chief economist, noted Friday that external labor market events had a “tangible impact” on payrolls in August, with strikes in Hollywood, about 1,800 southern California hotel workers on strike and the bankruptcy of trucking giant Yellow for the loss August was responsible for nearly 50,000 jobs.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on Twitter @allie_canal, LinkedIn and email her at [email protected].
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