Theater

Although professional, non-profit theater alone contributes more than $2.3 billion to the U.S. economy, according to the Theatre Communications Group (TCG), the total economic contribution is much higher when Broadway and other for-profit shows are considered. Millions of people attend profit and non-profit performances each year and often produce indirect economic benefits by eating out before a show, purchasing show music afterward, or traveling and staying in hotels to attend a show.

For such a large economic product, the theater field employs a small number of people on a full-time basis. According to the U.S. Department of Labor (DOL), theater and performing arts companies employed about 135,030 people as of May 2023. Many people are attracted by the glamour and excitement of the industry, so there is fierce competition for most jobs, especially for those with well-known production companies or theaters.

Theater will continue to offer employment opportunities to skilled artists, designers, producers, directors, stage managers, and musical directors. However, it is important to remember that there are very few stars in the theater. There are always three or four failures for every one hit. People who aspire to careers in the performing arts should recognize that although the possibilities of success exist and excite the imagination, the possibilities of disappointment are all too real.

As of late 2024, the U.S. live performance theaters industry was valued at $5.7 billion, with 3,135 businesses and total employment of 27,673 people, according to research group IBISWorld. Reflecting the difficulties caused by the COVID-19 pandemic, the industry had contracted 10.4 percent since 2019, including a 0.01 percent decline in 2024. The researcher indicated that profitability had become a struggle, with approximately 80 percent of Broadway productions not recovering initial investments. Despite this, IBISWorld forecast growth for the market through 2029.

Typically, theater professionals make ends meet by branching out. They find a job here, a job there, in television, film, radio, or the industrial arena. During the summer they may hope to connect with a stock company at a resort or with musical or dramatic road companies. Dinner theaters, outdoor dramas, cruise ship productions, and similar venues are additional alternatives for theater performers seeking to find work in nontraditional ways.

Even those that are able to obtain work with a production often don't earn enough income to support themselves. Acting unions report that about 80 percent of registered actors make an insufficient income from acting, and at least 30 percent of registered actors make no money from acting at all in any given year. Many people well trained in music, drama, or dance find work as teachers in arts schools or as private instructors in order to make a living. For those who do succeed, a career path often includes a variety of jobs.

According to the Actors' Equity Association, the organization’s members collectively worked 271,562 work weeks nationwide during the 2023–2024 season. This was a decrease of 1.9 percent from 276,757 work weeks in 2022–2023. Compared to conditions prior to the COVID-19 pandemic, work weeks stood at approximately 83 percent of those recorded in 2018–2019 (328,788). However, the organization indicated that its members’ earnings were 99 percent of those from 2018–2019. This was encouraging, even though the value of a dollar in 2024 was less than in 2019, because of inflation.

Overall, growth for the most common jobs in the industry will vary, according to the DOL. The number of producer and director jobs is expected to increase faster than the average through 2033. The DOL notes that “demand for theater producers and directors will depend on funding availability. If there is a steady revenue stream, these workers may be in demand. However, opportunities for theater producers and directors may be limited in theaters with funding challenges.” Compared to the theater, directors and producers will find more opportunities with film and television productions, which are experiencing strong growth.

The number of set designer positions will increase at an average pace (5%) through 2033. Each year, an average of 2,400 job openings are expected. Most opportunities will occur as existing workers move to different occupational roles or retire. In recent years, large theaters and production companies have hired fewer full-time designers, choosing instead to hire them on a project-by-project or contract basis. Freelance set designers may find better opportunities in this environment. Specialized design firms that offer set design services on a contract basis will also be a source of opportunities for set designers in the theater industry.

The group of professionals that attracts the most potential employees, actors, also will experience average (5%) employment growth through 2033. Small and midsize theaters will likely continue to have trouble funding productions, which leads to fewer performances and a corresponding reduction in the need for actors. Actors will find more opportunities, but also increased competition, for jobs at larger production companies. They may also find more jobs at other performance venues or decide to open their own acting studios for children or adults.

The expansion of cable and satellite television, the growth of online and mobile programming, the growth of the market for direct-to-DVD or video movies, and the demand for syndicated television shows, should create employment opportunities outside the theater for actors, directors, producers, costume and set designers, and other support positions. In theater itself, the outlook is mixed, as cultural budgets may be slashed and many theaters, particularly in the nonprofit sector, are unable to survive.

Government funding has declined slightly over the past few years, but support from contributors, including trustees, foundations, and individuals, has grown. Citing figures from the National Assembly of State Arts Agencies in August 2024, the Americans for the Arts ACTION Fund reported that state legislative appropriations to the 56 State and Special Jurisdiction Arts Agencies totaled $611.1 million in 2024. In 2025, this figure was expected to decline by 5.8 percent, to $575.6 million. However, this was still higher than levels recorded prior to the pandemic, and 31 percent more than the $396.1 million received in 2021.

Touring productions of Broadway plays and other large shows usually offer new opportunities for actors and directors, and there is a rising foreign demand for American productions, so the outlook is mixed and varied. Small and mid-sized theaters and production groups may continue to struggle for funding and support.