Labor Day, which is a federal holiday in the US, is observed on the first Monday of September in honour of the American labour movement.
Labor Day came into existence as trade unions like the Central Labor Union and movements like the Knights of Labor pushed for a day to be designated to celebrate the contributions of labourers. It became an official federal holiday in 1894 after President Grover Cleveland signed the law. By this time, 32 of the 45 US states were already observing the holiday.
Canada also celebrates its "Labour Day" on the first Monday of September.
How is US Labor Day different from May Day?
Unlike the US Labor Day, several countries observe the International Workers' Day on a fixed date, which is May 1. It is popularly referred to May Day.
Everyone who comes to New York City knows the meaning of hard work. Their grit and hustle is what's made us the greatest city in the world.
— Mayor Eric Adams (@NYCMayor) September 1, 2025
Happy Labor Day to all, and know that New York City will always fight for working people. pic.twitter.com/NGQAoYTPma
The US Labor Day unofficially marks the end of summer. On the other hand, May Day has its origins in ancient Europe and marks the beginning of summer. The date is also halfway between the spring equinox on March 20 and summer solstice on June 21.
May 1 was picked as International Workers' Day to mark the 1886 Haymarket massacre, when four civilians and seven police officers were killed in a dynamite bombing on May 4 at Haymarket Square in in Chicago. This happened during a rally by labourers who demanded an eight-hour work day.
Today, more than 150 countries observe May 1 as Labour Day or International Workers' Day, including India. However, it is not a national holiday in India. It is a state holiday in Assam, Bihar, Goa, Karnataka, Kerala, Manipur, Puducherry, Telangana, Tamil Nadu, Tripura, West Bengal. The exceptions are Maharashtra and Gujarat, where May 1 is also the founding day of those states and hence a state holiday.
What is open and shut on Labor Day in the US?
In the US, banks, post office, FedEx, UPS and Costco will remain closed in Labour Day. The US stock markets will also be closed for the day.
However, businesses like , Walmart, Target, Trader Joe, Walgreens, CVS, Sam's Club and Albertsons & Albertsons family will be opened.
Grocery stores like Kroger, Stop & Shop, Wegmans and Whole Foods will also remain open on September 1.
Stores like TJ Maxx, Macy's, Kohl's, Marshalls, Dollar General and Home Depot will also operate as normal.
Fast-food chains and restaurants like KFC, Burger King, McDonald's, Starbucks, Subway, Taco Bell, Wendy's, Applebee's, Sonic, Dunkin', Yard House and LongHorn Steakhouse will be open to customers.