Labor Day 2026: For millions of Americans, Monday, September 7, 2026, will mean one final long weekend before summer officially winds down. But while shoppers can still visit most major retailers, several important services will take a holiday break. Banks, government offices and US stock exchanges will close, while most grocery stores and national retailers will continue serving customers.
The holiday also comes as Americans face unusually high travel costs. Gasoline prices have climbed above $4 a gallon, while airfare to several popular domestic destinations is nearly 20% higher than last year. Despite those costs, Labor Day remains one of the busiest travel periods of the year.
Here is a complete guide to what Americans can expect on Labor Day 2026.
Is Labor Day a Federal Holiday?
Yes. Labor Day is a federal holiday observed across the United States on the first Monday of September.
The holiday grew out of the American labor movement in the late 19th century. The first Labor Day celebration took place in New York City on September 5, 1882, when about 10,000 workers took part in a parade organized by the Central Labor Union and the Knights of Labor.
Congress officially made Labor Day a legal holiday in 1894. President Grover Cleveland signed the legislation on June 28 of that year, establishing the first Monday of September as the national observance.
Government Offices, Post Offices and Courts
Most federal government offices will remain closed on Monday, September 7.
Post offices and federal courts will also observe the holiday. Americans who need government services should therefore plan their visits around the holiday schedule.
Schools will also generally remain closed for Labor Day, although school calendars can vary by district and state.
Are Banks Open or Closed on Labor Day 2026?
Most US banks will be closed on Monday, September 7, 2026.
Because Labor Day is a federal holiday, many traditional banking operations will pause for the day. Customers can still use ATMs, mobile banking and online banking services, although some transactions may not process until the next business day.
If you need to visit a bank branch, it is best to complete the visit before the holiday or check the branch’s individual schedule.
Is the US Stock Market Open on Labor Day?
No. The US stock market will be closed on Monday, September 7.
Both major US equity exchanges will observe Labor Day.
The Nasdaq lists September 7, 2026, as a full market holiday, while the New York Stock Exchange (NYSE) also lists Labor Day as a non-trading day.
Regular stock-market trading will resume after the holiday.
Are Walmart, Target and Other Stores Open?
Most major retailers will remain open on Labor Day.
National retailers and grocery chains typically use the holiday weekend to launch sales and promotions. Shoppers can therefore expect many stores to operate as usual, although individual locations may follow different opening and closing times.
Customers should check their local store before heading out because holiday hours can vary.
Is Costco Open on Labor Day 2026?
No. Costco will be closed on Labor Day.
Costco remains one of the major retail exceptions to the otherwise widespread Labor Day opening schedule. While many other national retailers will welcome shoppers, Costco warehouses will shut their doors for the holiday.
This makes it important for Costco members to complete their shopping before Monday or wait until the stores reopen.
Are FedEx and UPS Deliveries Running?
Standard FedEx and UPS pickup and delivery services will not operate on Labor Day.
However, some critical or specialised services may remain available at selected locations.
People expecting packages should therefore check their individual shipment status rather than assume that a delivery will arrive on September 7.
Labor Day Travel Could Be Expensive in 2026
The holiday weekend will also bring a major travel rush across the country.
Millions of Americans are expected to travel by road and air despite higher transportation costs. Rising fuel prices have become one of the biggest concerns for travellers this year.
AAA data cited by the Associated Press shows that domestic airfare to popular destinations is nearly 20% higher than last year, while hotel prices have also increased. The average price of regular gasoline has climbed to just under $4.10 per gallon, around 90 cents more than a year earlier.
Reuters separately reported that the national gasoline average was expected to reach about $4.03 per gallon, making this one of the most expensive Labor Day periods for US motorists.
Cruises Could Offer a Cheaper Travel Option
Not every form of travel has become more expensive.
AAA says cruises departing from US ports are around 4% cheaper than last year, giving travellers looking for a Labor Day getaway another option.
However, travellers should still compare fares, accommodation costs and transportation expenses before booking, particularly because fuel prices are putting pressure on many parts of the travel industry.
AAA Issues Road Trip Safety Advice
Americans planning to drive during the Labor Day weekend should prepare their vehicles before leaving.
AAA recommends checking:
- Tyres
- Battery
- Fluid levels
- Weather conditions along the route
Drivers should also carry an emergency kit with basic supplies such as water, snacks, a flashlight and jumper cables.
The advice comes as millions of motorists prepare for one of the busiest travel periods of the summer.
Labor Day 2026: Open vs Closed
| Service | Labor Day 2026 Status |
|---|---|
| Federal government offices | Closed |
| Post offices | Closed |
| Federal courts | Closed |
| Schools | Generally closed |
| Banks | Closed |
| NYSE | Closed |
| Nasdaq | Closed |
| FedEx standard services | Closed |
| UPS standard services | Closed |
| Costco | Closed |
| Most major retailers | Open |
| Most grocery stores | Open |
| Restaurants | Generally open |
Why Labor Day Still Matters
Although many Americans now associate Labor Day with shopping deals, barbecues and the final major summer getaway, the holiday began as a tribute to American workers.
The US Department of Labor describes Labor Day as an annual celebration of the social and economic achievements of American workers. Its roots stretch back to the labor movement of the 1880s, long before Congress established the holiday nationally in 1894.
In 2026, the holiday will combine that long-standing tradition with a busy travel weekend and a different economic backdrop, as higher fuel prices raise the cost of getting around the country.
For anyone planning to shop, travel or complete banking and government-related work, the key date to remember is Monday, September 7, 2026. Most essential retail services will continue, but Americans should complete banking, stock-market and government business before the holiday.
