Berkeley's creative economy—once a regional leader in job growth—faced a prolonged post-pandemic decline that diverged sharply from the city's broader economic recovery. With employment still 17% below its 2018 peak and year-over-year losses continuing through 2024, city leadership needed a rigorous baseline study to understand the sector's current contributions and inform future policy. The last comprehensive analysis dated to 2017, leaving decision-makers without reliable data on how the pandemic had reshaped an ecosystem heavily reliant on live performance, nonprofit structures, and gig-based work arrangements particularly vulnerable to disruption.

CVL Economics developed a customized Multi-Regional Input-Output model using IMPLAN to capture Berkeley's unique creative economy structure, including its high concentration of self-employed and gig workers often missed by traditional payroll datasets. The analysis integrated federal employment data, IRS nonprofit filings, city business license records, and cultural attendance data. Regional benchmarking against San Francisco, Oakland, and San Jose contextualized Berkeley's trajectory, while fiscal impact modeling quantified tax contributions across municipal, county, and state levels. The team also assessed return on investment for the city's Civic Arts Grant Program, linking public funding to measurable economic activity.