Manpower also reported a third-quarter net loss on Tuesday, reflecting slowing labor markets in the United States and Western Europe and a large charge for an investment in its Right Management consulting division.

Milwaukee-based Manpower, the world's second-biggest staffing company behind Swiss-based Adecco SA said U.S. weakness has now spread abroad and the full impact of the economic slowdown has yet to be felt by the labor market.

"While we do believe that the severity of the global financial crisis has not been completely revealed, particularly in Europe, we are confident that we will be able to manage through this effectively," Chief Executive Jeff Joerres said on a conference call.

The labor market downturn was starting to show up in Japan, Joerres said, and would also affect emerging markets like India and China. It was also likely to last longer than past downturns, but the eventual recovery may be quicker.

The company forecast fourth-quarter earnings, including a negative impact from currency, of 97 cents to $1.01 per share. That was well below average estimates of $1.43 per share.

"We think very weak fourth-quarter guidance may cause shares to trade off near term," Credit Suisse analyst Kelly Flynn said in a research note.

Shares fell $2.96 to $27.98 on the New York Stock Exchange in early trading.

Manpower said it did not expect to repurchase shares in the current credit environment, but would continue to look for possible acquisitions.

Manpower reported a third-quarter net loss of $43.2 million, or 55 cents per share, compared with a profit of $131.7 million, or $1.57 per share a year earlier.

Stripping out an impairment charge related to the Right Management segment, Manpower earned $1.42 per share, 1 cent below Wall Street forecasts, according to Reuters Estimates.

Revenue rose 7 percent to $5.67 billion, below forecasts for $5.87 billion. . (Reporting by Nick Zieminski, editing by Dave Zimmerman)