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→Developments in the Late 19th and early 20th Century
In the United States, celebrations in September 5th in celebrating labor had occurred by 1882. The American Federation of Labor and the Central Labor Union were two organizations that had advocated for a day to celebrate labor. Canada in the 1880s had also developed organized celebrations of labor. Trade unions in the United States had proposed a September date for a holiday throughout the 1880s. However, there was widespread disagreement, as many larger organizations, which wanted to link themselves with their colleagues in Europe, wanted to celebrate May 1 as Labor Day, holding events of remembering labor and to demonstrate against conditions. In 1887, Oregon became the first state to celebrate Labor Day.
Throughout the 1890s, a national movement to commemorate labor developed. The Pullman Strike in 1894 occurred due to reduction in pay for workers as well as high costs associated with the Pullman rail company housing provided to the them at a cost. The Pullman Company controlled much of the freight rail at the time and had vast power but also became critical to the operations of the larger economy of the United States. A strike was seen as threatening the US wider economy, leading to the government sending federal troops to breakup the protests after the protesters refused a court order to disband(Figure 2). This attempt at breaking the strike led to riots and violence, which eventually did lead to the collapse of the strikes but also many deaths. In effect, the governments actions were effective but politically costly for then President Grover Cleveland.
The cost to the government was widespread discontent with how the strike was put down. Cleveland, along with Congress, proposed having a federal holiday to celebrate labor to gain some political support he may have lost, particularly from some of the trade unions. However, one stipulation for Cleveland was the date of the celebration be in September, that is the first Monday in September, as he wanted to avoid celebrating in May due to the events of Haymarket. Cleveland did not want the Haymarket events remembered and become a rallying cry for further demonstrations, strikes or even political turmoil. Additionally, already the US government began to be wary of political movements sponsored by labor movements and what were socialist organizations. In effect, it was a holiday that put the US in similar footing to what happened elsewhere but with a specific avoidance of a day that the US government feared could become a rallying cry for other riots or even political action.
[[File:Workers leave the Pullman Palace Car Works, 1893.jpg|thumbnail|Figure 2. Workers leaving the Pullman grounds in an organized strike.]]
As Labor Day became an official US holiday in 1894, much did not change from earlier celebrations of Labor Day at state and other levels. Parades were held commemorating labor and calls were made for better working conditions and fair wages. However, by the early 20th century, prosperity returned to many areas in the United States. Worker conditions did gradually improve, creating alternative opportunities for celebrations. Fairs began to develop around the holiday weekend and more family-oriented events began to be organized by communities as leisure time increased for people.