Hollywood suffers job losses

Jobs in Hollywood fell by 11.8%

Hollywood lost 18,000 jobs over the last year because more and more films are being made away from Los Angeles, according to a report.

The research from the University of California (UCLA) warns that many of those jobs will not come back to the area.

In a few years, Hollywood will be like San Francisco's Silicon Valley where the ideas are generated but the products are made in Asia

Economist Christopher Thornberg

Hollywood workers are up in arms about the growing number of films being made in other cities such as Vancouver, Toronto and Sydney.

Studios are taking advantage of filmmaking subsidies and non-unionised workers to make films in countries including Canada.

The report said that jobs in motion picture production fell 11.8% to 133,600 in February from 151,400 in March last year.

UCLA economist Christopher Thornberg doubted the jobs will come back to Los Angeles.

He said: "It's a reflection of the large changes in the business, with more of the jobs in Los Angeles in management, administration and design rather than production.

Keanu Reeves' The Matrix was shot in Sydney

"We're evolving from a production centre to a design centre.

"In a few years, Hollywood will be like San Francisco's Silicon Valley where the ideas are generated but the products are made in Asia."

The report said the Los Angeles area had been partially shielded from the US recession by its healthy film business, which saw record box office takings last year.

UCLA business forecasters, who predicted last year's US economic downturn, also warned the American economy would enjoy only a weak recovery.

UCLA's Edward Leamer, who is director of the research, said that the 11 September attacks should not be considered a significant factor in the nationwide recession.

"I am getting really irritated by the extent to which the terrorists are given credit for the recession," Mr Leamer said.