Employment in California’s creative economy took a hit in 2023, but ‘museums were leading the way’ for growth

In California, the creative economy is one of its most vital, but in 2023 it shrank by about 8% according to the latest. Otis College Report on the Creative Economy, released on June 6. The report was presented in person and online from a stage at Sony Pictures Studios in Culver City, a place connected to the most powerful drivers of the state’s creative economy — film, television and music. These sectors were heavily impacted by the overall decline in the creative economy, particularly due to last year’s strikes by actors’ and writers’ unions.

“The last 12 months have been a relatively difficult period for the creative economy in the state,” said Taner Osman, one of the founders of the company responsible for the report, Westwood Economics and Planning Associates, “but it’s worth reminding ourselves that California is still a leader national, if not global, in the creative economy.”

Since 2007, the report, commissioned by the Otis College of Art and Design, has provided a snapshot of California’s creative economy backed by statistics. The report puts the number of people employed in the state’s creative economy last year at 849,000, so the loss of 8% represents about 71,000 jobs, while the entire country experienced a 4% drop in employment in this sector. Another reason for the decline is that film and television production has gradually moved to other states in search of lower costs and different locations.

Some important changes in report formatting and delivery have been made, Osman added, including the availability of an online dashboard. with periodic updates and the ability to create different charts using their data. Through the dashboard, for example, numbers can be viewed by county or sector over time.

Another important change is the way they are dividing the creative economy sectors from the previous six to nine sectors in this edition. The four that are unchanged are “Architecture and related services”, “Creative goods and products”, “Fashion” and “Fine and performing arts”. Meanwhile, “Entertainment” has been divided into “Film, TV and Sound” and “Independent Managers, Artists and Performers”, while “Media and Digital Media” has already been divided into “New Media”, “Traditional Media” and “Advertising”. .

All but one sector experienced a decline in employment last year. The report’s authors explained that this was due to a combination of factors. “Architecture suffered as the commercial real estate industry continued its slowdown from the pandemic,” the report said in a summary section, “while the advertising industry fell victim to a tightening environment in corporate America, particularly in late 2022 and early of 2023.”

The only sector that took a hit in employment was Fine and Performing Arts—from 49,746 workers in 2022 to 53,975 in 2023—due to more jobs in museums and art schools. “In the data we’re reporting, museums were leading the way,” Patrick Adler, a partner at West Economics, told The Art Newspaper. “We’ve opened new museums, it could be that simple.” He added, “This is the sector most supported by the state, and this is the one that during this period of crisis is really standing.

In Los Angeles alone, museums are being built, expanded, and staffed—construction projects are underway or nearing completion at the Natural History Museum, the Los Angeles County Museum of Art, the Institute of Contemporary Art, the Broad, and the Museum of Narrative Lucas Art. The latest edition of PST Art hosted by Getty, Art and Science collidekicks off in September at museums and art spaces throughout the southern part of the state.

According to the report, “the creative economy includes a group of industries for which the primary production (or product) has symbolic value. These industries include a set of activities through which ideas are transformed into cultural and creative goods and services.” Under this broad definition, about 849,000 Californians were directly employed by the creative economy in 2023, and another 639,000 were employed in industries that support that economy. Adding those two numbers suggests that about one in ten jobs in the state are part of the creative economy, a large share that is made heavier than those directly employed in the creative economy tend to be compensated — earning an average of $192,000 per year. (Of course, this number is inflated due to certain individuals such as studio executives and star actors receiving extremely high salaries.)

After the presentation on June 6, a moderator and four panelists from different parts of the creative economy held a wide-ranging discussion about life in the trenches. Despite a certain tendency towards decentralization, most agreed that the existence of the metropolis was still important. “Artists love to be together,” said Kristin Sakoda, director of the Los Angeles County Department of Arts and Culture. “Artists collaborate”.

Amy Homma, director and newly appointed president of the Academy of Motion Picture Museum and panelist for the museum sector, agreed. “It’s a very exciting time for Los Angeles and the museum landscape,” she said. “It gives more opportunities for artists to appear. Museums continue to be a hub and a space of networking and gathering.” She added: “Ten, 20 years ago people went to museums and just wanted to read and be passive, but there’s been a change and now people want to engage, have a conversation.”