What Is Labor Day? Everything You Need to Know About Its Origins, What Is Open on Labor Day and the Top Labor Day Sales

Labour Day is a federal holiday in the United States, celebrated each year on the first Monday of September. This year, it falls on 1 September and is observed nationwide.

The day honours American workers, recognising their contributions to the nation's growth and prosperity.

Originating in the labour movement of the late 19th century, it is now marked across the country with parades, family gatherings, community events and retail sales.

Federal offices, banks and stock markets will close, while many retailers will offer some of the year's biggest discounts.

The Origins of Labour Day

The first Labour Day parade took place in New York City on 5 September 1882, organised by the Central Labor Union.

Around 10,000 workers marched through the streets to call attention to the need for better working conditions.

The origins of the holiday are often attributed to Peter J. McGuire, a union leader, although others credit Matthew Maguire, a machinist, with the idea.

By 1894, momentum had grown as several states had already begun observing the holiday. In June that year, President Grover Cleveland signed legislation making Labour Day a federal holiday.

Early commemorations featured parades, rallies and speeches highlighting workers' rights and the importance of fair wages and reasonable working hours.

How Labour Day Is Observed Today

Over the decades, Labour Day has shifted from primarily a workers' rights demonstration to a mix of leisure and commemoration.

Modern traditions include parades, barbecues, picnics and the start of the American football season.

Communities also host festivals such as the Bread and Roses Heritage Festival in Massachusetts, which reflects on the cultural history of labour struggles.

The holiday remains politically significant. In 2025, more than 100 people gathered in Eugene, Oregon, to protest on labour and political issues, showing that the holiday still provides a platform for modern activism.

What Is Open on Labour Day 2025?

The holiday impacts services, with widespread closures. Federal government offices and many state agencies will be closed, alongside banks across the country.

The New York Stock Exchange, Nasdaq and bond markets will not open. Postal services will be suspended, with FedEx and UPS operating only limited services.

Costco warehouses nationwide will also remain closed.

Most retail outlets, supermarkets and restaurants will remain open, though holiday hours may apply. Shopping centres are expected to draw large crowds, boosted by Labour Day sales across a wide range of products.

The Top Labour Day Sales and Deals

Labour Day has become one of the most important retail weekends of the year, with sales positioned as the unofficial end of summer.

In 2025, Amazon has highlighted significant discounts on home décor items, with prices ranging from $10 (£7.40) to $40 (£29.59).

According to Yahoo Life, editors also uncovered up to 75% off deals at Amazon, Walmart and other major retailers, reinforcing that this holiday weekend is one of the biggest for bargain hunters.

Steep markdowns are available on appliances, electronics, furniture and clothing as retailers extend online and in-store promotions with doorbuster deals and limited-time offers.

Current Issues and Public Concerns

This year's Labour Day arrives with added challenges. Environmental health officials have issued warnings about faecal contamination at beaches in several states, prompting some coastal communities to caution holiday-goers.

At the same time, debates about workers' rights in the gig economy and renewed calls for unionisation have placed the spotlight back on labour issues. For many, the holiday remains both a day of rest and a reminder of the continuing relevance of workers' struggles in the United States.