WGA Strike Cost to Los Angeles: $2.5 Billion

Today, the Hollywood Reporter has a story highlighting the economic effects the recently settled WGA strike has had on the local Los Angeles economy. Citing an Economic Forcast Report set to be released today by Jack Kyser, noted LA Economist and head of the LA Economic Development Corp, the article paints a somewhat grim picture of the post-strike LA economic situation.
Among the points made by Keyser in the 71-page report is that the strike, which started November 5 and was settled earlier this month, has already cost LA an estimated $2.5 billion in lost revenue. That figure includes lost wages from TV shows that were canceled and films that were put on hold as well as losses by a vast array of support services from, according to the article, "limo drivers to florists."
Kyser also suggested in the report that the cancellation of the Golden Globes alone resulted in a $60 million loss to the LA economy. In addition, other factors will contribute to the economic situation in LA including, according to the article, that leaders of the Screen Actors Guild are "talking tough," so there is growing concern they will go on strike after the union’s labor contract with the studios expires on June 30.




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