Much like the rest of the world, the Covid-19 virus shut down America’s economy as businesses were forced to close and their workers were forced to isolate. Los Angeles in particular felt this impact the hardest; the pandemic caused the booming film industry to shut, putting a great majority of people out of work.
As Hollywood is responsible for the majority of worldwide film profits, it is clear to see how Los Angeles’ economy was disproportionately affected compared to other regions in America. One year later and the world seems to be spinning again, films are being made and released into cinemas that this time last year stood empty. But has California recovered from its economic slump?
From March 2021, employment in Los Angeles has recovered 64% of the losses that it experienced in the first three months of the pandemic. This is compared to 59% state-wide, which seems to be promising for the City of Angels. Despite this though, unemployment is at a high 10.9% which is considerably higher than the wider state employment of 8.2%. These numbers show that while growth is slow, Los Angeles is in a much better position than it was during the early months of the pandemic. And while it underwent a steep job loss beginning in February of last year, it is clear that there has been a fast recovery period.
As already stated, Hollywood is a key reason why the Los Angeles economy seems to be recovering. Since the State of California has deemed film production cast and crew as essential workers, movies are now able to ramp up production at rates not seen since before the pandemic. One way the industry evolved can be seen by its backing of animated films. In an environment that saw people having to stay apart, the ability to work remotely on films was a godsend to the industry and is no doubt a key factor in why the industry has experienced a bounce back. The highly successful launch of Disney+ has also contributed to an increased demand for animators, creating new job opportunities within the industry.
It should be said that the return to normality could not have come at a better time. Throughout the pandemic, with their favourite shops closed and no new films releasing, people took to more easily accessible forms of entertainment in their leisure time. An increase in console gaming and online gambling like on these betting sites has led to respective growth in their industries. Now Hollywood is thriving once again, and a slate of new blockbusters are due to be released soon, a clear path for Los Angeles recovery has been laid, and is already being tread on. With the hospitality and travel industries also bouncing back, there is no doubt that the Los Angeles economy will soon return to its natural state.