Labor Day was promoted by the Central Labor Union and the Knights of Labor, who organized the first parade in New York City. After the Haymarket Massacre in Chicago on May 4, 1886, U.S. President Grover Cleveland feared that commemorating Labor Day on May 1 could become an opportunity to commemorate the affair. Therefore, in 1887, the United States holiday was established in September to support the Labor Day that the Knights favored.
In 1882, Matthew Maguire, a machinist, first proposed the holiday while serving as secretary of the CLU (Central Labor Union) of New York. Others argue that it was first proposed by Peter J. McGuire of the American Federation of Labor in May 1882,[3] after witnessing the annual labour festival held in Toronto, Canada. Oregon was the first state to make it a holiday on February 21, 1887. By the time it became a federal holiday in 1894, thirty states officially celebrated Labor Day.
The September date originally chosen by the CLU of New York and observed by many of the nation's trade unions for the previous several years was selected rather than the more widespread International Workers' Day because Cleveland was concerned that observance of the latter would be associated with the nascent socialist and anarchist movements that, though distinct from one another, had rallied to commemorate the Haymarket Affair in International Workers' Day. All U.S. states, the District of Columbia, and the territories have made it a statutory holiday.