The number of jobs in the British film industry fell by 20% last year, UK Film Council figures show.
In 2004, 24,816 people were employed in the movie and video production sector, compared with 31,264 in 2003.
The decline reflects the fact that fewer films are being made in an industry hit by uncertainty over UK tax changes, the council said. In July, the government announced formal consultations on new tax incentives.
Big-budget Hollywood productions have been particularly scarce, with only two – The Da Vinci Code and Basic Instinct II – shooting at Pinewood studios since the start of the year.
As well as almost 25,000 people employed in production, about 20,000 more worked in cinemas.
The general trend has been upward for the past decade, however, with the film and video industry workforce 46% higher in 2004 than it was a decade ago.