Film Subsidies Fail to Deliver Local Jobs, Report Finds

Only 30% of production spending goes to in-state workers in some regions, while California leads in local hiring

Apr. 9, 2026 at 4:05pm

Got story updates? Submit your updates here. ›

A minimalist studio still life photograph featuring a stack of film reels, a director's clapperboard, and a vintage microphone arranged on a clean, monochromatic background, conceptually representing the complex economic realities of the film industry's reliance on state subsidies.A new report suggests that film production subsidies may primarily benefit the industry itself rather than local economies, raising questions about the cost-effectiveness of these programs.Los Angeles Today

A new report suggests that many regions offering generous film production subsidies are not actually creating as many local jobs as their high spending figures imply. The report found that only 30% of production spending in Oklahoma goes to in-state workers, while other hotspots like Ontario, New Mexico, and Georgia also have relatively low local hire rates compared to their subsidy programs. In contrast, California leads in local job creation, with 98% of production spending going to below-the-line crew.

Why it matters

The findings challenge the common justification for film production incentives - that they will boost local economies and create middle-class jobs. The report indicates that the subsidies may primarily benefit the film industry itself, rather than the states and cities providing the incentives. This raises questions about the cost-effectiveness of these programs and whether they are the best use of public funds.

The details

The report, published by workforce training operator Kalison Studios, evaluated the effectiveness of film subsidy programs in creating local employment. It found that only 30% of the $100 million Oklahoma sees in annual production spend goes to in-state workers. Other regions with relatively low local hire rates compared to their subsidy amounts include Ontario (86%), New Mexico (82%), Australia (82%), Georgia (72%), and Hungary (68%). Factors contributing to the low local hiring include rapid production growth outpacing workforce development, subsidy programs not prioritizing local hiring, and senior roles being filled by experienced workers from other regions.

  • In 2023, Oklahoma saw a surge in film production as it poured more money into its rebate program.
  • In 2025, production spending in Georgia plummeted to $2.3 billion across 245 productions after peaking in 2022 at $4.4 billion across 412 productions.
  • In 2021, there were more than 141,000 workers in California's film and TV recording industry, but those figures dropped to 121,000 workers in 2024.

The players

Kalison Studios

A workforce training operator that published the report evaluating the effectiveness of film subsidy programs in creating local employment.

Glenn Kalison

The founder of Kalison Studios.

Gavin Newsom

The Governor of California, who has pushed for higher filming subsidies in the state.

Noah Wyle

The star and executive producer of the TV series The Pitt, who testified at a congressional hearing in support of film production incentives.

Got photos? Submit your photos here. ›

What they’re saying

“Georgia is surprisingly low. At the same time, it has greatest opportunity for improvement. And it's doing the most to address that. So I think that's in their favor. But there has been a transient class moving out of Georgia and folks flying in from L.A.”

— Glenn Kalison, Founder, Kalison Studios

“It is vital to the strength of industry and city to support these incentives. It's an investment in the city's most precious commodity and asset. it's an investment in its people.”

— Noah Wyle, Star and Executive Producer, The Pitt

What’s next

The report's findings are expected to fuel ongoing debates about the effectiveness and cost-benefit analysis of film production incentive programs in various states and regions.

The takeaway

While film production subsidies are often touted as a way to boost local economies and create jobs, this report suggests that the reality is more complex. Regions need to carefully evaluate the true local economic impact of these programs and prioritize policies that maximize in-state hiring and wages rather than just chasing high-profile productions.