L.A.'s 'Ecosystem' Beginning to Crack Under Hollywood Strike

The Hollywood writer's strike is beginning to have ripple effects throughout the Los Angeles economy, and has already cost the city $1.4 billion in lost wages.

2 minute read

January 18, 2008, 11:00 AM PST

By Michael Dudley


"Hollywood is on strike and it is beginning to hurt the city built around the entertainment industry. People are out of work, the local economy is suffering and the biggest blow to both revenue and prestige could be yet to come - the cancellation of the Oscars. As the writers' strike cuts deep, thousands of people who rely on LA's entertainment industry face financial ruin. And the city which has already lost $1.4bn may now lose the Oscars

The writers' union that is leading the strike told The Observer it would not back down even if it meant that the Academy Awards would suffer the same fate as the Globes. The cost to the city would be $130m (£66m), according to the Los Angeles Economic Development Corp, with tens of millions more wiped off advertising revenues.

The strike has already cost the Los Angeles area $1.4bn in lost wages, according to Jack Kyser, chief economist for the Los Angeles Economic Development Corp. The ripple effect is being felt by carpenters, caterers, make-up artists, stagehands, truck drivers and numerous other workers who find themselves out of work and struggling to meet mortgage payments.

'The delicate ecosystem in this town is starting to break down,' said Orla Brady, an Irish actress based in the city. 'My husband and I are seeing friends for dinner tomorrow night. It will be at their house instead of a restaurant because they both work in the film business and they're worried, so they've had to let their nanny go. Then you wonder how the nanny is going to make a living.'

For the rest of the community, there is growing unease and uncertainty. Celebrity stylist Phillip Bloch, who has tentatively started work for the Oscars, said the strike would make itself felt more and more widely. 'Right now it affects you but doesn't paralyse you: it's not like the garbage not being collected or the subway [trains] going on strike. But it could go on a very long time. Imagine a world with no new movies. Then people would notice.'"

Sunday, January 13, 2008 in Observer (UK)

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Aerial view of single-family homes with swimming pools in San Diego, California.

San Diego to Rescind Multi-Unit ADU Rule

The city wants to close a loophole that allowed developers to build apartment buildings on single-family lots as ADUs.

March 9, 2025 - Axios

Canadian flag in foreground with blurred Canadian Parliament building in background in Ottawa, Ontario, Canada.

Has President Trump Met His Match?

Doug Ford, the no-nonsense premier of Canada's most populous province, Ontario, is taking on Trump where it hurts — making American energy more expensive.

March 11, 2025 - Toronto Star

Close-up of green ULEZ sign in London, UK.

Study: London ULEZ Rapidly Cleaning up Air Pollution

Expanding the city’s ultra low-emission zone has resulted in dramatic drops in particle emissions in inner and outer London.

March 10, 2025 - Smart Cities World

Burned car and home in Los Angeles after 2019 wildfire.

The Unseen Aftermath: Wildfires’ Lasting Health and Emotional Burden

Wildfires in Los Angeles not only pose immediate physical health risks but also lead to long-term respiratory problems and mental health struggles, underscoring the need for a coordinated public health response to mitigate their lasting effects.

3 hours ago - UCLA Health

View of Central Park lake with people sitting on lakeside rocks and NYC high-rises in background.

Public Parks as Climate Resilience Tools

Designed with green infrastructure, parks can mitigate flooding, reduce urban heat, and enhance climate resilience, offering cost-effective solutions to environmental challenges while benefiting communities.

5 hours ago - Grist

Cyclists and a red T train on the Longfellow Bridge in Boston, MA at sunset.

What the Proposed Federal Budget Means for Transit, Rail

The proposed FY 2025 budget keeps spending for public transit and passenger rail essentially the same as in 2024.

7 hours ago - American Public Transportation Association

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.