As the US observes Labor Day on September 2, 2024, major retailers like Walmart, Target, Lowe’s, and Macy’s are open and offering discounts of up to 50%. This holiday, which marks the unofficial end of summer, has seen 45% of Americans planning to take advantage of Labor Day sales, despite 26% of consumers indicating they will cut back on spending due to financial constraints. Labor Day, celebrated on the first Monday of September, has its roots in the late 19th-century labor rights movement, with the first state to recognize it being Oregon on February 21, 1887. The U.S. Congress made it a legal holiday on June 28, 1894, signed by President Grover Cleveland. As of July 2024, there are 161.3 million Americans employed, with an unemployment rate of 4.3%, up from 3.5% a year ago. The average private sector non-farm employee earns $1,199.39 weekly, reflecting the economic significance of this holiday for American workers.
While many retailers are open, grocery stores like Aldi will operate on limited hours, whereas Trader Joe’s and Kroger will maintain regular hours. Costco will be closed for the holiday, but Sam’s Club and BJ’s Wholesale will remain open. Additionally, banks, stock markets, and postal services will be closed today, allowing consumers to focus on shopping. In 2023, the grocery sector employed 2.8 million workers, gas stations 976,000, airlines 480,000, and hotels over 1.5 million, highlighting the significant employment impact of these industries during holiday seasons.
In the context of the stock market, the NYSE and Nasdaq are closed today, with trading set to resume on September 3, 2024. The S&P 500 saw a rise of 5.65% in August, while the Nasdaq increased by 5.59% and the Dow Jones climbed by 4.59%. These gains come amid expectations of potential interest rate cuts from the Federal Reserve, with Chair Jerome Powell indicating that upcoming payroll data on September 6 could significantly influence the Fed's meeting on September 18. Investors are closely monitoring these developments as they could impact market dynamics in the coming weeks.
In addition to the stock market updates, the TSA is expecting nearly 20 million travelers during the Labor Day period, reflecting the holiday's significance for travel and leisure. The first Labor Day parade was a protest march on September 5, 1882, which laid the groundwork for the celebration of American workers. Interestingly, Americans consumed 818 hot dogs per second between Memorial Day and Labor Day in 2021, showcasing the cultural aspects of this holiday. Overall, this Labor Day presents a mix of shopping opportunities and market closures, reflecting both consumer behavior and broader economic trends.