The origins of Labor Day can be traced to the labor movement of the late 19th century in the United States. There is some uncertainty as to who deserves credit for the idea; most cite either Peter J. McGuire, a union leader who founded the United Brotherhood of Carpenters in 1881, or Matthew Maguire, a machinist and secretary of the Central Labor Union (CLU). One of the men suggested to the CLU that there be a celebration honoring American workers. On September 5, 1882, some 10,000 workers, under the sponsorship of the Knights of Labor, held a parade in New York City. There was no particular significance to the date. McGuire said that it was chosen because it fell roughly halfway between the Fourth of July holiday and Thanksgiving. In 1884 the Knights of Labor adopted a resolution that the first Monday in September be considered Labor Day. The idea quickly spread, and by the following year Labor Day celebrations were being held in a number of states.
So how did Labor Day become a federal holiday in the United States? The answer involves the Pullman Strike of 1894, which was a widespread railroad strike and boycott that severely disrupted rail traffic in the Midwest. Amid the unrest—which eventually led to a federal government injunction—U.S. President Grover Cleveland decided to make a conciliatory gesture to the labor movement. He proposed creating a national public holiday to commemorate workers. The most obvious choice was either Labor Day or May Day. However, the latter’s socialist origins and its association with various workers’ riots, notably Chicago’s Haymarket Affair of 1886, made May Day unacceptable. So, Labor Day was selected, and on June 28, 1894, Cleveland signed legislation making it an official federal holiday.