For nearly a year after the first lockdowns in March 2020 in the United States, economic productivity across the arts sector ground to a halt as the closures hit employment and revenues at museums, theaters and arts spaces across the country. The impact of COVID-19 on the arts has been undeniable, but new data released last week by the National Endowment for the Arts (NEA) quantifies the extent of the damage: Between 2019 and 2020, the arts economy shrank at almost twice the rate the US economy as a whole.
The arts represent a broad and diverse sector of local, institutional, and national organizations, and the majority of artists working in the US are either self-employed or independent. The NEA says arts and culture production fell 6.4% in inflation-adjusted terms, compared to a 3.4% contraction in the overall economy. The value added of self-employed artists, writers and performers fell by 20.6% and the unemployment rate across all arts and culture sectors rose from 3.7% in 2019 to 10.3% in 2020, according to NEA analysis.
The NEA reports that while the arts and culture industry has regained some ground in 2021, it has not yet returned to 2019 levels of income and activity. Several independently owned arts and culture spaces that originally closed in 2020 never reopened after suffering irreparable economic losses, and others have been held on by a thread of support from government subsidies and community aid.
As expected, with theaters and live performance spaces closed for almost a year, the film and performing arts industries were among the hardest hit. The film industry lost approximately 136,000 workers when COVID-19 halted all production, and although many studios have since resumed in-person work, many safety protocols have been maintained.
The government’s arts and culture contributions have remained stable during the pandemic. Despite the reduced production, arts and culture managed to add US$876.7 billion to the national GDP in 2020, compared to US$919.7 billion in 2019. The results also show that the revenues of the performing arts doubled in the third quarter from $834 million in 2020 to $1.7 billion in 2021, but that amount falls short of the $12.7 billion earned in 2019.
“While the arts and culture industries and workers have suffered severe losses across the country, the sector continues to play an outsized role in the US economy, new data shows,” said NEA Chair Dr. Maria Rosario Jackson in a statement.
Rosario Jackson points to an interesting trend within the sector: This summer of self-isolation and the start of remote work catalyzed a mass transition to digital art programs. Gallery openings and live performances that were once purely personal affairs could be accessed from the comfort of one’s home, and this proliferation of digital media engagement increased economic value by 14.3% between 2019 and 2020 and employed 12,000 people.
The Arts and Cultural Production Satellite Account (ACPSA) has compiled datasheets that illustrate the value that the arts and cultural sectors have added to local economies across the 50 states in 2020. In New York alone, art contributed $126.7 billion, or 7.3%. of the state’s total economic value, and independent artists contributed a total of about $5 million. While the toll of COVID-19 on the creative industries has been significant, for the NEA the sustained value creation is a clear indicator of progress and a reason to advocate for greater support for the creative industries.
“NEA is committed to being a key partner in the recovery of this sector, recognizing not only its economic value but also the ability of art to transform the lives of individuals and communities in other ways, contributing to health, well-being and overall resilience” , added Rosario Jackson.
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