While it does seem that "The First Day of School" has become the more important early September holiday, the vast majority of stores and businesses are still closed on Labor Day. This gives the worker, the 'Labor' in the day's title, with some ability to take the day off. It likely won't last too much longer, with stores being open on Thanksgiving and even Christmas Day becoming much more common. Labor Day can't be too far behind.
I remember when the only businesses that where open on Labor Day were a few gas stations. Now it seems like the only places that are closed on Labor Day are government offices. Maybe we should change the date to "Government Labor Day", and for everybody else business as usual.
Originally, Labor Day celebrated the American workforce. The first was celebrated in the late 1880s. Since then, its meaning has diminished as far as the American public is concerned. In our decade, many Americans wonder what Labor Day represents, but have no will or necessity to research the topic. Therefore, the original concept is lost.
No I do not think that labor day holiday currently represents what is was intended to. It was intended to honor working people in the country. When labor day comes around on the first day of September every year, people use this as a day to get together with family and grill or picnic.