For one of the top federal holidays that Americans take off, ask people what comes to mind with the mention of “Labor Day,” and you will most likely hear two responses: “Back to school” and “Can’t wear white.”
This is a far cry from the holiday’s founders’ intent and makes one wonder whether Labor Day has lost its relevance. I believe it’s a holiday that begs to be made relevant in 2025 as we think about ways we can take back our lives and adjust our work-life balance.
First, a brief history of the holiday’s original intent and why it was created.
Labor Day was first designated in 1882 when labor union leader Peter McGuire proposed to the New York Central Labor Union to honor workers in New York with their own holiday. Twelve years later, President Grover Cleveland upgraded this to a national holiday.
America was in the midst of the Industrial Revolution, marked by 12-hour workdays, child labor and abysmal working conditions. Then, in 1894, the Pullman strike occurred. At the heart of the strike was a 25 percent wage reduction for workers belonging to the American Railway Union. The depression of 1893 had caused George Pullman, the CEO, to reduce wages. He did not, however, lower rents within the company town he built for his workers, leaving workers barely able to feed their families.
When leaders of the ARU requested a meeting with Pullman, Pullman refused and fired the leaders. This caused thousands of workers to walk off the job, and a massive disruption to rail traffic ensued.
With both sides dug in, politicians turned to the courts for help. A court injunction was granted, requiring an end to the strike. President Cleveland sent in troops to enforce the ruling. Riots ensued, civilians were killed and a railroad yard was burned.
President Cleveland worked to diffuse the tension by calling for a national holiday to celebrate workers. He also hoped it would keep labor squarely behind him. Thus began our commemoration of Labor Day, usually marked with parades, barbeques and occasional fireworks.
For most of us, the day means the end of summer break and the marking of a new school year.
As we celebrate the holiday in 2025, it has lost its original significance for many reasons. In 1971, the Occupational Safety and Health Administration was established to ensure a safer workplace. With mandated standards, random inspections and hefty penalties for noncompliance, the workplace is vastly improved.
Also affecting the significance of Labor Day is the much lower participation rate in labor unions. The steep decline has gone from a peak of 35 percent in 1954 to 9.9 percent in 2024. Within the private sector, union participation has dwindled to 5.9 percent in 2025, partly due to the decline in U.S. manufacturing. Fewer union employees have meant less enthusiasm for the day.
No doubt the attitude of millennials has affected the holiday, as they are not typically big union supporters. In the past, union members gladly ceded authority to the union and followed marching orders because benefits ensued — more generous pensions, improved working conditions and the like. Today’s millennials view the world differently. They’ve grown up in a gig economy, tend to be skeptical of those in power, and appreciate their independence. The “union drum” is not their beat.
This does not mean Labor Day can’t be relevant in 2025, but a reframing is needed. Can we view the day through a more modern lens, considering topics including the effect of globalization, AI and automation on the workforce?
When the holiday began, unions benefited by having their shifts reduced from 12 hours to eight. Today, connected to multiple digital devices, we work around the clock, which can lead to fatigue and burnout. Our work-life boundaries range from small to non-existent. The promise offered by Work from Home, once considered a boon, hasn’t been freeing at all.
What if in 2025, while we’re sitting at that picnic table, we use Labor Day to engage in conversation with our families and explore how we can lead a life with more intentionality, less digital grind and more balance?
But don’t forget to pack away your wardrobe of whites! That aspect of the holiday has not changed.
