Why is Labor Day Celebrated in the U.S.?

Every year at the end of summer, Americans look forward to one of our favorite public holidays: Labor Day. While it’s often marked by fun outdoor activities, the meaning behind this beloved day off is much deeper.

Like other federal holidays, such as Memorial Day, Labor Day has inspirational origins. Its roots trace back to the labor movement, where Americans stood up in the face of poor working conditions, creating a legacy of dignity and respect for the American worker.

Learning about Labor Day's origins allows us to appreciate how ordinary citizens can produce lasting change.

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What is the Historical Significance of Labor Day? Why is Labor Day Celebrated?

Have you ever wondered why America has a 40-hour work week? What about the traditional eight-hour workday? These regulations didn’t just happen; they resulted from workers standing up to unfair conditions and creating a labor movement that would change the face of the American workforce forever.

Early History of American Labor

Modern labor unions in the U.S. have roots dating back to the European Industrial Revolution in the 1700s. By the late 19th century, the Industrial Revolution was in full force, and the need for unskilled and skilled workers in America grew, thanks in part to the abolition of slavery after the Civil War.

As industry continued to develop, factories and sweatshops became more common. Large corporations could get away with creating horrible working conditions, offering low wages, and providing no job security.

While there were many laws protecting companies, legal protections for workers were almost nonexistent. Many factory workers worked more than 12 hours, seven days a week, in horrible conditions. Workers weren’t offered regulated breaks, fresh air access, or clean bathrooms.

Without age regulations, children as young as five worked alongside adults. Wages were low, with many earning only $0.40 to $1. It became clear that the only way to fight for workers’ rights was to disrupt the status quo and band together.

The Rise of the Labor Movement

The idea of fair treatment began to spread like wildfire, and unions started to emerge. In 1869, the Order of the Knights of Labor opened its doors to all workers, including skilled and unskilled laborers, women, and African Americans. Their goal? To unionize all American workers and increase their negotiating power.

As wage cuts and poor working conditions spread, tensions grew to an all-time high. By the 1870s, violent strikes and battles occurred throughout the country. Notable events include:

• The Molly Maguires Uprising: This secretive labor group resorted to violence—murdering supervisors and burning company buildings to protest mistreatment.

• The Great Strike of 1877: Rail workers shut down the Eastern rail trunk lines, leading to widespread clashes with the militia and government forces.

• The Haymarket Affair (1886): The Knights of Labor, socialists, and trade unionists organized a rally in Chicago. It turned violent, resulting in several deaths and injuries.

While the violence would eventually subside, more labor organizations would continue to form. Some notable examples are the American Federation of Labor, which grew to include over 1.4 million union members, the United Brotherhood of Carpenters, with co-founders Peter J. McGuire and Gustav Luebkert, and the Central Labor Union behind leader Matthew Maguire.

Labor Day Beginnings

Before Labor Day became an official holiday, it began as a local movement. On September 5, 1882, New York City hosted the nation’s first Labor Day celebration. Ten thousand workers took unpaid leave to march from City Hall to Union Square in a powerful show of solidarity.

The idea quickly gained traction. States like Oregon, Colorado, and Pennsylvania started recognizing their own Labor Day. Still, it would take one more pivotal moment to bring the movement to the national stage.

When the Pullman Palace Car Company workers in Chicago went on strike in 1894, it triggered the American Railroad Union to boycott all Pullman railway cars. The Pullman strike caused railroad traffic across the country to grind to a halt. In response, the Federal Government dispatched troops to Chicago. Violent riots broke out, resulting in more than a dozen lives lost, including union leaders.

As a final attempt to repair ties with American workers, President Grover Cleveland passed an act creating Labor Day as a legal holiday. He declared that the first Monday of September would be a day to honor workers and celebrate their contribution to America.

What is the Legacy of the Labor Movement?

The labor movement forever changed the treatment and working conditions for the American people. The bravery of the early union members led to legal protections and regulations like the eight-hour workday and 40-hour workweek.

Corporations could no longer exploit child labor. The Labor movement gave a voice to all workers, fostering dignity, respect, and fairness in the workplace. Although union membership continues to decline, the hard-won standards, protections, and rights remain a lasting legacy for all Americans.

Should You Fly Your American Flag on Labor Day?

Labor Day is an official flag flying holiday. It honors the brave American workers who fought for equality, fairness, and recognition. Although the economy has changed since the 19th century, it’s still important to recognize how far our workforce has come as a nation.

Other Labor Day FAQs

As you celebrate the end of summer with a long weekend, think about these additional Labor Day facts.

Who created Labor Day?

There’s no solid consensus on who actually created Labor Day, but it’s believed to have either been Peter J. McGuire of the Brotherhood of Carpenters and Joiners or the machinist Matthew Maguire from the International Association of Machinists.

When is Labor Day Celebrated?

Americans officially celebrate Labor Day on the first Monday in September.

What is the difference between Labor Day and Memorial Day?

While both Labor Day and Memorial Day are national holidays, they have very different meanings. Labor Day celebrates the American worker and the advancements in workplace conditions. Memorial Day, meanwhile, honors the brave American servicemembers who gave their lives for our freedoms.

Celebrate Labor Day with a Flag

Celebrate the determination, grit, and the American spirit with Carrot-Top's stunning American flags. These American-made ensigns are masterfully crafted from the finest materials and built to last the test of time.

Labor Day celebrates the power of working together to build something that lasts — just like our flags.