Labor Day is a U.S. federal holiday celebrated on the first Monday of September. It honors the contributions of workers and has its origins in the labor movement of the late 19th century. The first Labor Day parade took place in New York City in 1882, with about 10,000 workers marching in a demonstration organized by labor groups. The holiday was officially established in 1894 by President Grover Cleveland, who signed a congressional act to recognize the day.
On Labor Day, many government buildings, including offices, post offices, courts, and schools, are closed. U.S. stock markets and banks also observe the holiday, and standard delivery services from companies like FedEx and UPS are not available. However, some critical services may still be offered at select locations, depending on the need.
Most major national retailers and grocery stores remain open on Labor Day, often offering special sales to draw in customers. Costco, however, is closed on this day. Store hours can vary by location, so it's a good idea to check with local businesses for specific details.
Despite rising fuel prices and the start of the school year, many Americans are expected to travel over Labor Day. The American Automobile Association (AAA) reports that flight prices to popular domestic destinations are nearly 20% higher than last year, and hotel prices have also increased. The average price for a gallon of regular gasoline is about $4.10, up 90 cents from the same time last year. However, cruise lines are offering slightly lower prices, with departures from U.S. ports about 4% cheaper than in previous years.
Although AAA does not provide a detailed travel forecast for Labor Day like it does for other major holidays, it offers general travel advice. Travelers are encouraged to check the weather, inspect their vehicles’ tires, battery, and fluid levels before a road trip, and to pack an emergency kit with essentials like water, snacks, a flashlight, and jumper cables. These precautions can help ensure a safer and more enjoyable holiday travel experience.
Labor Day 2025: Businesses, Travel, and Holiday Observances
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