On September 5, 1882, some 10,000 workers assembled in New York City to participate in America's first Labor Day parade. After marching from City Hall, past reviewing stands in Union Square, and then uptown to 42nd Street, the workers and their families gathered in Wendel's Elm Park for a picnic, concert, and speeches. This first Labor Day celebration was eagerly organized and executed by New York’s Central Labor Union, an umbrella group made up of representatives from many local unions.
Labor Day, the first Monday in September, is a creation of the labor movement and is dedicated to
the social and economic achievements of American workers. It constitutes a yearly national tribute
to the contributions workers have made to the strength, prosperity, and well-being of our country.
Debate continues to this day as to who originated the idea of a workers' holiday, but it definitely emerged from the ranks of organized labor at a time when they wanted to demonstrate the strength of their burgeoning movement and inspire improvements in their working conditions.
Through the years the nation gave increasing emphasis to Labor Day. The first governmental recognition came through municipal ordinances passed during 1885 and 1886. From these, a movement developed to secure state legislation. The first state bill was introduced into the New York legislature, but the first to become law was passed by Oregon on February 21, 1887. During the year four more states — Colorado, Massachusetts, New Jersey, and New York — created the Labor Day holiday by legislative enactment. By the end of the decade Connecticut, Nebraska, and Pennsylvania had followed suit. By 1894, 23 other states had adopted the holiday in honor of workers. Finally, in response to a groundswell of support for a national holiday celebrating the nation’s workers, Sen. James Henderson Kyle of South Dakota introduced S. 730 to the 53rd Congress to make Labor Day a legal holiday on the first Monday of September each year. It was approved on June 28, 1894.
Information from this post excerpted from:
The Library of Congress, American Memory [Website]
The United States Department of Labor [Website]