# Construction jobs analysis¶

The Los Angeles Times conducted an analysis of federal data to evaluate the makeup and pay of construction work.

The analysis found that wages have been in decline nationwide for several decades. In LA County, this has coincided with a shift to a workforce made up overwhelmingly of Latinos, which leads a nationwide trend in the industry toward employing more Latino workers.

Those results were published in the April 20, 2017 story "Immigrants flooded California construction. Worker pay sank. Here’s why".

The story cities other studies by UCLA, unionstats.com and other sources that are not reproduced here.

## How we did it¶

Downloaded data on wages from the Bureau of Labor Statistics' Current Employment Statistics Program and prepared it for analysis.

In [1]:
%%capture
%run bls/02-transform.ipynb


Downloaded U.S. Census data tracking the hispanic ethnicity of adult workers in Los Angeles by industry from the University of Minnesota's IPUMS online data analysis system and prepared it for analysis.

In [96]:
%run ipums/01-transform.ipynb


### Finding 1: Construction workers make more than 5 dollars an hour less today than they did in 1972, when pay in the field peaked¶

In [1]:
import cpi
import calculate
import pandas as pd
import matplotlib.pyplot as plt

In [2]:
import warnings
warnings.filterwarnings("ignore")

In [3]:
%matplotlib inline


Read in BLS data that tracks a number of metrics by industry

In [4]:
bls = pd.read_csv("./bls/output/bls_ce_transformed.csv")


Filter down to unadjusted data, as recommended by BLS staff

In [5]:
bls = bls[bls.seasonal == 'U']


Filter down to records that track large sectors of the economy the BLS calls "super sectors." Construction is one of them.

In [6]:
bls = bls[bls.supersector_name == bls.industry_name]


Filter down to data tracking the average hourly pay for non-supervisors in each supersector

In [7]:
bls = bls[
bls.data_type_text == 'AVERAGE HOURLY EARNINGS OF PRODUCTION AND NONSUPERVISORY EMPLOYEES'
]


Filter down to annual totals

In [8]:
bls = bls[bls.period == 'M13']


Adjust the wages for inflation to 2016 dollars using the Consumer Price Index

In [9]:
bls['value_2016_dollars'] = bls.apply(
lambda x: cpi.to_2016_dollars(x.value, x.year),
axis=1
)


Trim that data down and chart the change in Construction pay

In [10]:
bls_construction = bls[
bls.supersector_name == 'Construction'
].set_index("year")

In [11]:
bls_construction[['value_2016_dollars']].plot()

Out[11]:
<matplotlib.axes._subplots.AxesSubplot at 0x7f5daad84490>

Output data for a graphic

In [42]:
bls_construction[['value_2016_dollars']][bls_construction.index > 1972].to_csv("./bls/output/graphic.csv")


What as the peak year?

In [12]:
bls_construction.sort_values(
"value_2016_dollars",
ascending=False

Out[12]:
year
1972    31.866958
Name: value_2016_dollars, dtype: float64

How much do they make today?

In [13]:
bls_construction.sort_index(
ascending=False

Out[13]:
year
2016    25.97
Name: value_2016_dollars, dtype: float64

How much has pay declined between the two years?

In [14]:
max_construction_pay = bls_construction.at[1972, 'value_2016_dollars']

In [15]:
construction_pay_today = bls_construction.at[2016, 'value_2016_dollars']

In [16]:
construction_pay_today - max_construction_pay

Out[16]:
-5.8969581339712924

### Finding 2: At its peak, construction paid almost 10 dollars more than the average hourly job in the private sector. But as real pay steadily declined for decades, much of that gap was erased.¶

Pull the same time series for the private sector as a whole

In [17]:
bls_overall = bls[
bls.supersector_name == 'Total private'
].set_index("year")


Compare the two

In [18]:
bls_comparison = pd.merge(
bls_construction.reset_index()[['year', 'value_2016_dollars']],
bls_overall.reset_index()[['year', 'value_2016_dollars']],
on="year",
suffixes=["_construction", "_private"]
).set_index("year")

In [19]:
bls_comparison.plot()

Out[19]:
<matplotlib.axes._subplots.AxesSubplot at 0x7f5da9ad68d0>

Measure the difference

In [23]:
bls_comparison['diff'] = bls_comparison.apply(
lambda x: x.value_2016_dollars_construction - x.value_2016_dollars_private,
axis=1
)


What year was the gap the greatest?

In [24]:
bls_comparison.sort_values("diff", ascending=False).head(1)

Out[24]:
value_2016_dollars_construction value_2016_dollars_private diff
year
1972 31.866958 22.392998 9.473961

What is the gap today?

In [25]:
bls_comparison.sort_index(ascending=False).head(1)

Out[25]:
value_2016_dollars_construction value_2016_dollars_private diff
year
2016 25.97 21.54 4.43

### Finding 3: Even as homebuilding exploded from 2011 to 2016, hourly wages for construction laborers rose slower than average pay.¶

Extract out the pay for those two years

In [26]:
bls_11v16 = bls_comparison[
(bls_comparison.index == 2011) |
(bls_comparison.index == 2016)
]


Calculate the percentage increase for construction

In [27]:
calculate.percentage_change(*bls_11v16.value_2016_dollars_construction)

Out[27]:
2.9157056562594472

Do the same for the overall private sector

In [28]:
calculate.percentage_change(*bls_11v16.value_2016_dollars_private)

Out[28]:
3.8461236753022447

### Finding 4: Seventy percent of construction workers in Los Angeles are Latino.¶

Read in construction industry worker totals by hispanic status, retrieved from the University of Minnesota's IPUMS compilation of U.S. Census data.

In [29]:
la_hispanics = pd.read_csv("./ipums/output/hispanics_la_combined.csv")


Plot it by year

In [30]:
la_hispanics[['year', 'latino_percent']].reset_index().set_index("year").latino_percent.plot()

Out[30]:
<matplotlib.axes._subplots.AxesSubplot at 0x7f5daa636710>

Output the totals

In [31]:
la_hispanics[['year', 'latino_percent']]

Out[31]:
year latino_percent
0 1980 24.155741
1 1990 43.102641
2 2000 53.354025
3 2005 68.171001
4 2010 66.138752
5 2015 69.562059

Output data for a graphic

In [43]:
la_hispanics[['year', 'latino_percent']].to_csv("./ipums/output/graphic.csv", index=False)