Hooray for Hollywood : Entertainment business is one of few bright spots in L.A. County economy
The recent news from the California Employment Development Department was predictably bleak for Los Angeles County. In the San Fernando Valley, for example, jobs in general manufacturing and high-tech manufacturing had declined by 28% since 1987. The construction industry was so far down the toilet that not even post-earthquake rebuilding work could square things.
But there was one bright spot--call it a boomlet after the major boom and bust of the Cold War-driven defense and aerospace industries. Despite all of the talk of show business desertion to Florida, British Columbia and elsewhere, jobs in our entertainment industry were up 61% since 1987.
And many were not in the typical five-and-dime wage category. In movie production, for example, average weekly earnings were up 78% since 1987, to $1,146 a week. That dwarfed the progress made in aircraft and parts manufacturing salaries (up 27.8% to $827 a week) and earnings in the electronic equipment trade (up 30% to $538 a week).
What it all means is simple: The kind of job creation that can help steady Southern California’s ailing tax revenue base and spur recovery is being provided by the entertainment industry.
This is most evident in Burbank, where NBC studios, Walt Disney and Warner Bros. are enjoying an explosion of production activity, as well as in the demand from overseas markets and cable television. Disney, Warner Bros. and MCA/Universal Studios are also engaged in long-term local expansion plans. DreamWorks SKG, a new studio, plans to build its feature animation division in Glendale.
The effects clearly spread to Los Angeles, where many studio employees live. They are unlikely to be defaulting on mortgages and other loans, and some of their pay will end up in black ink on the books of restaurants, new car agencies and similar consumer outlets.
As with all development, of course, there is a downside. Cash-strapped cities prepared to give away the store to bring in the entertainment industry and its dollars should be advised that these projects are accompanied by increased traffic, noise and other nuisances. That’s show business.
