An illustration of the first Labor Day parade, held on Sept. 5, 1882, in New York City. The holiday was organized by the Central Labor Union to exhibit “the strength and esprit de corps of the trade and labor organizations” of the community, and to host a festival for the workers and their families.
New York, New Jersey and Colorado were among the first states to approve state legal holidays. In response to support for a national holiday, Sen. James Henderson Kyle of South Dakota introduced a bill to make Labor Day a legal holiday on the first Monday of September each year. It was approved June 28, 1894.
Children march in the 1963 New York City Labor Day parade. Since the very first celebration, Labor Day has been a time for families to relax and have fun.
http://www.dol.gov/laborday/history.htm

