Is May 1st Labor Day or Loyalty Day?

It depends on where you live.
If you live in the United States of America then May 1st is Loyalty Day. It is a holiday created around 1958 when Americans reaffirm loyalty to the American way. Curiously many people in the U.S. do not know anything about this holiday that is though observed in certain places but not everywhere. In other words, May 1st is not observed in the U.S.
May 1st is Labor Day in most countries, not the U.S., though curiously enough it all began with events happening in Chicago at the end of the nineteen century when workers claimed for eight-hour workdays which did not exist at the time. The protesters were shot by the  Police sent to control the situation. As a way to pay homage to all those workers Labor Day was instituttionalized  only not in the States.
There is a Labor Day in the U.S. calendar though and it is celebrated on the first Monday in September. It is believed that the idea to separate that day and celebrate it as Labor Day was done so as not to relate it with Communism in any manner. It is called International Workers´ Day in the United States.      
For the rest of us who live in other countries and still for a long time to come May 1st will stay as Labor Day.

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