ManpowerGroup Inc
For the period ended Sep 30, 2024. Filed Nov 8, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 8, 2024
MAN$44.50-3.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-02.
0000950170-24-090022
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-08.
0000950170-24-124196
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 133 previous paragraphs and 136 current paragraphs.
33 unchanged; 72 reworded; 31 added; 27 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (31)
Current report
Our operating profit increased 1.5% in the third quarter of 2024 while our operating profit margin increased 10 basis points compared to the third quarter of 2023. Operating profit increased primarily due to a reduction in selling and administrative expenses as a percent of revenue, a reduction in corporate expense related to incentives and certain other health plan trends, and lower restructuring charges.
Current report
a revenue decrease in Northern Europe of -9.4% (-11.0% in constant currency) primarily driven by an $81.6 million decrease in demand for our Manpower and Experis staffing/interim services, a $21.0 million decrease in demand for our Experis solutions services and an $8.5 million decrease in demand for our permanent recruitment services, partially offset by the $15.0 million favorable impact of currency exchange rates and a $5.3 million increase in demand for our Talent Solutions outplacement services. Within our Northern Europe segment, we experienced revenue decreases in the United Kingdom of $25.7 million, the Nordics of $31.8 million, Germany of $19.6 million and Belgium of $6.0 million, which represented revenue decreases of -8.1%, -20.0%, -14.0% and -6.9%, respectively (-10.5%, -19.0%, -14.8% and -7.9%, respectively, in constant currency). These decreases were partially offset by a revenue increase in the Netherlands of $0.5 million, which represented a revenue increase of 0.6% (-0.4% in constant currency); and
Current report
a revenue decrease in APME of -0.3% (increase of 1.6% in constant currency and 3.0% in organic constant currency) primarily driven by the $11.1 million unfavorable impact of currency exchange rates, a $7.5 million decrease in demand for our permanent recruitment services and a $9.0 million decrease in demand for TBO, partially offset by a $26.8 million increase in demand for our Manpower staffing services.
Current report
The -5.4% decrease in selling and administrative expenses in the third quarter of 2024 (-4.4% in constant currency and -4.3% in organic constant currency) was primarily attributed to:
Current report
a $12.2 million, or -5.7% decrease (-5.0% in constant currency) in non-personnel costs primarily due to a $13.2 million decrease in office lease and other office costs;
Current report
a $7.5 million, or -1.2% decrease due to the impact of changes in currency exchange rates; and
Current report
the $37.6 million of restructuring costs, incurred in the third quarter of 2024 compared to $38.1 million incurred in the third quarter of 2023.
Current report
Operating Results - Nine Months Ended September 30, 2024 and 2023
Current report
a revenue decrease in Northern Europe of -10.5% (-11.7% in constant currency) primarily driven by a $264.2 million decrease in demand for our Manpower and Experis staffing/interim services, a $60.2 million decrease in demand for our Experis solutions services and a $26.9 million decrease in demand for our permanent recruitment services, partially offset by the $34.6 million favorable impact of currency exchange rates and a $9.5 million increase in demand for our Talent Solutions outplacement and MSP services. Within our Northern Europe segment, we experienced revenue decreases in the United Kingdom of $98.6 million, the Nordics of $133.6 million, Germany of $52.9 million, the Netherlands of $5.2 million and Belgium of $6.6 million, which represented revenue decreases of -10.0%, -21.6%, -12.5%, -1.8% and -2.8%, respectively (-12.3%, -21.2%, -12.8%, -2.1% and -3.1%, respectively, in constant currency); and
Current report
a revenue decrease in APME of -7.4% (-1.8% in constant currency and -0.5% in organic constant currency) primarily driven by the $99.0 million unfavorable impact of currency exchange rates, a $53.4 million decrease in demand for our permanent recruitment services and a $19.4 million decrease in demand for our TBO, partially offset by a $43.8 million increase in demand for our Manpower and Experis staffing/interim services.
Current report
The -7.0% decrease in selling and administrative expenses in the first nine months of 2024 (-5.4% in constant currency and -5.2% in organic constant currency) was primarily attributed to:
Current report
a $37.3 million, or -1.6% decrease due to the impact of changes in currency exchange rates;
Current report
restructuring costs of $37.6 million, in the first nine months of 2024 compared to $59.2 million incurred in the first nine months of 2023; and
Current report
a 20 basis point favorable impact as a result of lower restructuring costs incurred in the first nine months of 2024 compared to the first nine months of 2023; and
Current report
Selling and administrative expenses decreased -7.1% (-1.5% in constant currency) in the third quarter of 2024 compared to the third quarter of 2023, primarily driven by the $12.5 million favorable impact of currency exchange rates and a $3.2 million decrease in consulting and outside services costs.
Current report
Selling and administrative expenses decreased -6.0% (-0.8% in constant currency) in the first nine months of 2024 compared to the first nine months of 2023, primarily driven by the $33.7 million favorable impact of currency exchange rates and a $6.4 million decrease in consulting and outside services costs.
Current report
In Southern Europe, revenues from services decreased -3.6% (-3.5% in constant currency) in the first nine months of 2024 compared to the first nine months of 2023. In France, revenues from services decreased -4.7% (-5.0% in constant currency) in the first nine months of 2024 compared to the first nine months of 2023, primarily driven by a $185.3 million decrease in demand for our Manpower staffing services, partially offset by an $11.8 million increase in demand for our Talent Solutions outplacement services. In Italy, revenues from services decreased -2.7% (-3.0% in constant currency) in the first nine months of 2024 compared to the first nine months of 2023, primarily driven by a $37.3 million decrease in our Manpower staffing services and a $5.3 million decrease in demand for our permanent recruitment services, partially offset by a $3.9 million increase in demand for TBO. In Other Southern Europe, revenues from services decreased -1.4% (-0.4% in constant currency) during the first nine months of 2024 compared to the first nine months of 2023, primarily driven by the $14.1 million unfavorable impact of currency exchange rates and a $16.0 million decrease in demand for our Experis solutions services, partially offset by an $8.8 million increase in demand for TBO and a $5.6 million increase in demand for our Manpower and Experis staffing/interim services. Within our Other Southern Europe segment, we experienced revenue decreases in Switzerland of $36.4 million, or -10.0% (-12.0% in constant currency), partially offset by a revenue increase in Spain of $7.0 million, or 1.9% (1.6% in constant currency).
Current report
Selling and administrative expenses decreased -0.9% (-1.9% in constant currency) during the third quarter of 2024 compared to the third quarter of 2023, primarily due to a $2.6 million decrease in bonuses and sales commissions and a $2.2 million decrease in salary-related costs, partially offset by the $2.2 million unfavorable impact of currency exchange rates.
Current report
Selling and administrative expenses decreased -3.3% (-3.4% in constant currency) during the first nine months of 2024 compared to the first nine months of 2023, primarily due to an $8.2 million decrease in salary-related costs, a $6.6 million decrease in restructuring related expenses, a $4.4 million decrease in bonuses and sales commissions and a $3.9 million decrease in consulting and outside services costs associated with our technology and back-office transformation initiatives.
Current report
In the Northern Europe region, revenues from services decreased -10.5% (-11.7% in constant currency) in the first nine months of 2024 compared to the first nine months of 2023, primarily driven by a $264.2 million decrease in demand for our Manpower and Experis staffing/interim services, a $60.2 million decrease in demand for our Experis solutions services and a $26.9 million decrease in demand for our permanent recruitment services, partially offset by the $34.6 million favorable impact of currency exchange rates and a $9.5 million increase in demand for our Talent Solutions outplacement and MSP services. Within our Northern Europe segment, we experienced revenue decreases in the United Kingdom of $98.6 million, the Nordics of $133.6 million, Germany of $52.9 million, the Netherlands of $5.2 million and Belgium of $6.6 million, which represented revenue decreases of -10.0%, -21.6%, -12.5%, -1.8% and -2.8%, respectively (-12.3%, -21.2%, -12.8%, -2.1% and -3.1%, respectively, in constant currency).
Current report
Gross profit margin remained flat in the third quarter of 2024 compared to the third quarter of 2023, primarily due to decreased activity in our permanent recruitment business, particularly Talent Solutions RPO, which decreased 60 basis points, offset by improvement in our staffing/interim margins, which had a 60 basis point offsetting impact.
Current report
Selling and administrative expenses increased 1.1% (2.4% in constant currency and 3.7% in organic constant currency) in the third quarter of 2024 compared to the third quarter of 2023. The increase is primarily due to the $2.2 million in restructuring costs incurred in the third quarter of 2024 compared to $0.8 million in third quarter of 2023 and a $0.9 million increase in consulting and outside services costs associated with our technology and back-office transformation initiatives, partially offset by the $0.9 million favorable impact of currency exchange rates and a $0.9 million decrease in software and software maintenance costs.
Current report
OUP in APME decreased -4.4% (increases of 3.3% in constant currency and 4.6% in organic constant currency), in the first nine months of 2024, which represents a 4.1% OUP margin, an increase from 4.0% in the first nine months of 2023. This OUP decrease was primarily driven by the decreased activity in our permanent recruitment business, partially offset by a decrease in selling and administrative expenses, as noted above.
Current report
Occasionally, we dispose of parts of our operations based on risk considerations and to optimize our global strategic and geographic footprint and overall efficiency. On September 29, 2023, we disposed of our Philippines business in our APME segment for total consideration of $6.5 million. In connection with the disposition, we recognized a one-time net loss on disposition of $1.3 million.
Current report
Application of Critical Accounting Policies
Current report
In accordance with the accounting guidance for goodwill, we perform an annual impairment test of goodwill at our reporting unit level during the third quarter, or more frequently if events or circumstances change that would more likely than not reduce the fair value of our reporting units below carrying value.
Current report
Estimated cash flows and goodwill are grouped at the reporting unit level, which the company has determined to be a component of the operating segments for which discrete financial information is available and for which segment management regularly reviews the reporting results.
Current report
We evaluate the recoverability of goodwill utilizing an income approach that estimates the fair value of the future discounted cash flows to which the goodwill relates. This approach reflects management’s internal outlook of the reporting units, which is believed to be the best determination of value due to management’s insight and experience with the reporting units. Significant assumptions used in our goodwill impairment test during the third quarter of 2024 included: expected future revenue growth rates, operating unit profit margins, working capital levels, discount rates, and a terminal value multiple. The expected future revenue growth rates and operating unit profit margins were determined after taking into consideration our historical revenue growth rates and operating unit profit margins, our assessment of future market potential, and our expectations of future business performance.
Current report
We believe that the future discounted cash flow valuation model provides the most reasonable and meaningful fair value estimate based on the reporting units’ projections of future operating results and cash flows and is consistent with our view of how market participants would value the company’s reporting units in an orderly transaction.
Current report
In the event the fair value of a reporting unit is less than the carrying value, including goodwill, we would record an impairment charge based on the excess of a reporting units’ carrying amount over its fair value.
Current report
We performed our annual impairment test of our goodwill during the third quarter of 2024 and there was no impairment of our goodwill. Refer to Note 1 for results of our annual goodwill impairment testing.
Removed paragraphs (27)
Previous report
Our operating profit decreased -6.1% in the second quarter of 2024 while our operating profit margin remained the same compared to the second quarter of 2023. Excluding the loss of $2.9 million in operating profit due to operational losses from our Proservia business in Germany in the second quarter of 2024 that we are exiting and restructuring costs of $14.5 million incurred in the second quarter of 2023, our operating profit decreased -14.8%. Operating profit margin decreased 20 basis points compared to the second quarter of 2023. The operating profit margin decreased primarily due to a decrease in gross profit margin, as noted above.
Previous report
a revenue decrease in Northern Europe of -12.1% (-12.0% in constant currency) primarily driven by a $92.5 million decrease in demand for our Manpower and Experis staffing/interim services, a $20.9 million decrease in demand for our Experis solutions services and a $7.8 million decrease in our permanent recruitment services. Within our Northern Europe segment, we experienced revenue decreases in the United Kingdom of $37.7 million, the Nordics of $42.6 million, Germany of $24.8 million, the Netherlands of $2.4 million and Belgium of $4.0 million, which represented revenue decreases of -11.5%, -20.2%, -17.6%, -2.5% and -4.9%, respectively (-12.2%, -19.4%, -16.6%, -1.3% and -3.8%, respectively, in constant currency); and
Previous report
a revenue decrease in APME of -9.7% (-2.0% in constant currency and 0.7% in organic constant currency) primarily driven by the $46.3 million unfavorable impact of currency exchange rates and a $20.4 million decrease in demand for our permanent recruitment services, partially offset by a $17.4 million increase in demand for our Manpower staffing services.
Previous report
The -9.3% decrease in selling and administrative expenses in the second quarter of 2024 (-6.5% in constant currency and -6.4% in organic constant currency) was primarily attributed to:
Previous report
a $20.4 million, or -2.8% decrease due to the impact of changes in currency exchange rates;
Previous report
the non-recurrence of restructuring costs in the second quarter of 2024 compared to $14.5 million incurred in the second quarter of 2023; and
Previous report
a $13.3 million, or -8.7% decrease (-5.8% in constant currency) in non-personnel costs, primarily due to a $6.4 million decrease in office lease and other office costs, a $5.5 million decrease in consulting and outside services costs associated with our technology and back-office transformation initiatives and a $1.4 million decrease in advertising and promotional expenses.
Previous report
a 10 basis point favorable impact as personnel costs decreased as a percent of revenues, primarily due to percent of revenue decreases in salaries, bonuses and sales commissions as we saw the effects of restructuring actions taken in 2023; and
Previous report
Operating Results - Six Months Ended June 30, 2024 and 2023
Previous report
Experis staffing/interim services and a $12.5 million decrease in demand for our permanent recruitment services, partially offset by a $4.6 million increase in demand for our Talent Solutions outplacement services;
Previous report
a revenue decrease in Northern Europe of -11.1% (-12.1% in constant currency) primarily driven by a $182.5 million decrease in demand for our Manpower and Experis staffing/interim services, a $39.2 million decrease in demand for our Experis solutions services and an $18.4 million decrease in our permanent recruitment services, partially offset by the $19.6 million favorable impact of currency exchange rates and a $7.7 million increase in demand for our Talent Solutions outplacement and MSP services. Within our Northern Europe segment, we experienced revenue decreases in the United Kingdom of $72.9 million, the Nordics of $101.8 million, Germany of $33.3 million, the Netherlands of $5.7 million and Belgium of $0.6 million, which represented revenue decreases of -10.9%, -23.2%, -11.8%, -2.9 and -0.4%, respectively (-13.2%, -22.5%, -11.8%, -2.9% and -0.4%, respectively, in constant currency); and
Previous report
a revenue decrease in APME of -10.7% (-3.4% in constant currency and -2.2% in organic constant currency) primarily driven by the $87.9 million unfavorable impact of currency exchange rates, a $45.8 million decrease in demand for our permanent recruitment services and a $10.4 million decrease in demand for our Experis solutions services, partially offset by a $19.3 million increase in demand for our Manpower and Experis staffing/interim services.
Previous report
The -7.8% decrease in selling and administrative expenses in the first half of 2024 (-5.8% in constant currency and -5.7% in organic constant currency) was primarily attributed to:
Previous report
a $29.8 million, or -2.0% decrease due to the impact of changes in currency exchange rates;
Previous report
the non-recurrence of restructuring costs in the first half of 2024 compared to $21.1 million incurred in the first half of 2023; and
Previous report
a 20 basis point favorable impact as a result of restructuring costs incurred in the first half of 2023 that did not recur in the first half of 2024; and
Previous report
a 10 basis point unfavorable impact as non-personnel costs as a percent of revenues increased, primarily due to percent of revenue decreases in office leases and consulting and outside services; and
Previous report
Selling and administrative expenses decreased -7.6% (-2.3% in constant currency) in the second quarter of 2024 compared to the second quarter of 2023, primarily driven by the $11.5 million favorable impact of currency exchange rates and a $2.8 million decrease in consulting and outside services costs associated with our technology and back-office transformation initiatives.
Previous report
Selling and administrative expenses decreased -5.4% (-0.5% in constant currency) in the first half of 2024 compared to the first half of 2023, primarily driven by the $21.2 million favorable impact of currency exchange rates and a $1.7 million decrease in salaries from a reduction in headcount.
Previous report
In Southern Europe, revenues from services decreased -5.0% (-4.6% in constant currency) in the first half of 2024 compared to the first half of 2023. In France, revenues from services decreased -5.9% (-5.8% in constant currency) in the first half of 2024 compared to the first half of 2023, primarily driven by a $140.4 million decrease in demand for our Manpower staffing services and a $4.2 million decrease in demand for our permanent recruitment services, partially offset by a $6.5 million increase in demand for our Talent Solutions outplacement services. In Italy, revenues from services decreased -4.6% (-4.6% in constant currency) in the first half of 2024 compared to the first half of 2023, primarily driven by a $40.6 million decrease in our Manpower staffing services and a $3.6 million decrease in demand for our permanent recruitment services, partially offset by a $2.6 million increase in demand for our Manpower solutions services. In Other Southern Europe, revenues from services decreased -3.3% (-1.6% in constant currency) during the first half of 2024 compared to the first half of 2023, primarily driven by the $15.8 million unfavorable impact of currency exchange rates and a $11.4 million decrease in demand for our Experis solutions services. Within our Other Southern Europe segment, we experienced revenue decreases in Spain and Switzerland of $6.6 million, or -2.8% and $23.6 million, or -9.8%, respectively (-2.7% and -11.9%, respectively, in constant currency).
Previous report
Selling and administrative expenses decreased -6.6% (-5.2% in constant currency) during the second quarter of 2024 compared to the second quarter of 2023, primarily due to the non-recurrence of $6.0 million in restructuring costs, the $3.3 million favorable impact of currency exchange rates, and a $2.4 million decrease in salary-related costs.
Previous report
Selling and administrative expenses decreased -4.5% (-4.2% in constant currency) during the first half of 2024 compared to the first half of 2023, primarily due to the non-recurrence of $6.4 million in restructuring costs, a $6.0 million decrease in salary-related costs, a $2.3 million decrease in consulting and outside services, and a $1.8 million decrease in bonuses and sales commissions.
Previous report
In the Northern Europe region, revenues from services decreased -11.1% (-12.1% in constant currency) in the first half of 2024 compared to the first half of 2023. Within our Northern Europe segment, we experienced revenue decreases in the United Kingdom of
Previous report
$72.9 million, the Nordics of $101.8 million, Germany of $33.3 million, the Netherlands of $5.7 million and Belgium of $0.6 million, which represented revenue decreases of -10.9%, -23.2%, -11.8%, -2.9 and -0.4%, respectively (-13.2%, -22.5%, -11.8%, -2.9% and -0.4%, respectively, in constant currency). The revenue decrease in Northern Europe was primarily driven by a $182.5 million decrease in demand for our Manpower and Experis staffing/interim services, a $39.2 million decrease in demand for our Experis solutions services and a $18.4 million decrease in our permanent recruitment services, partially offset by the $19.6 million favorable impact of currency exchange rates and a $7.7 million increase in demand for our Talent Solutions outplacement and MSP services.
Previous report
Gross profit margin decreased 160 basis points in 2024 compared to 2023 primarily due to decreased activity in our permanent recruitment business, particularly Talent Solutions RPO, which contributed 240 basis points to the decrease, a decrease in gross profit across training solutions services, which contributed 20 basis points to the decrease, and the unfavorable impact of currency exchange rates, which contributed 10 basis points to the decrease. These contributions were partially offset by improvement in our staffing/interim margins, which had a 90 basis point offsetting impact, and increased activity in our higher-margin Right Management outplacement services, which had a 20 basis point offsetting impact.
Previous report
Selling and administrative expenses decreased -22.8% (-16.3% in constant currency) in the second quarter of 2024 compared to the second quarter of 2023. The decrease is primarily due to a $5.6 million decrease in salary related costs, the $5.2 million favorable impact of currency exchange rates and a $3.3 million decrease in consulting and outside services.
Previous report
OUP in APME decreased -3.8% (increases of 6.0% in constant currency and 7.0% in organic constant currency), in the first half of 2024, which represents a 4.2% OUP margin, in the first half of 2024, an increase from 3.9% in the first half of 2023 This OUP decrease was primarily driven by the impact of currency exchange rates, partially offset by a decrease in selling and administrative expenses, as noted above.
Reworded paragraphs (72)
Previous wording
Our business is cyclical in nature and is sensitive to macroeconomic conditions generally. Client demand for workforce solutions and services is dependent on the overall strength of the labor market and secular trends toward greater workforce flexibility within each of the segments where we operate. Improving economic growth typically results in increasing demand for labor, resulting in greater demand for our staffing services while demand for our outplacement services typically declines. During periods of decreased demand, as we experienced in the second quarter of 2024, our operating profit is generally impacted unfavorably as we experience a deleveraging of selling and administrative expenses, which may not decline at the same pace as revenues. By contrast, during periods of increased demand, we are generally able to improve our profitability and operating leverage as our cost base can support some increase in business without a similar increase in selling and administrative expenses.
Current wording
Our business is cyclical in nature and is sensitive to macroeconomic conditions generally. Client demand for workforce solutions and services is dependent on the overall strength of the labor market and secular trends toward greater workforce flexibility within each of the segments where we operate. Improving economic growth typically results in increasing demand for labor, resulting in greater demand for our staffing services while demand for our outplacement services typically declines. During periods of decreased demand, as we continued to experience in the third quarter of 2024, our operating profit is generally impacted unfavorably as we experience a deleveraging of selling and administrative expenses, which may not decline at the same pace as revenues. By contrast, during periods of increased demand, we are generally able to improve our profitability and operating leverage as our cost base can support some increase in business without a similar increase in selling and administrative expenses.
Previous wording
In the second quarter of 2024, we continued to observe decreased demand for staffing services and permanent recruitment services primarily due to increased economic uncertainty, and we expect this trend to continue. The economic uncertainty is particularly high in Europe and the United States, driven by elevated inflation and higher interest rates. As a result of these factors, we expect the business environment will continue to be challenging for us in future periods, especially in the United States and Europe, with many companies delaying hiring decisions or reducing their demand for contingent labor. The current economic uncertainty is exacerbated by increasing geopolitical tensions, which could further negatively impact our operations in future periods.
Current wording
In the third quarter of 2024, we continued to observe decreased demand for staffing services and permanent recruitment services primarily due to continued economic uncertainty, and we expect this trend to continue. The economic uncertainty is particularly high in Europe and the United States. Inflation has eased in Europe and the United States resulting in both markets reducing interest rates during the quarter. However, employers are continuing their cautious approach with many employers retaining their current workforce, delaying hiring decisions or reducing their demand for contingent labor as they remain focused on managing the macro-economic and geopolitical challenges impacting their businesses. Many employers are still hesitant to increase their spend and expand their workforce until they perceive a significant improvement in economic outlook. As a result of these factors, we expect the business environment will continue to be challenging, which could further negatively impact our operations in future periods.
Previous wording
During the second quarter of 2024, the United States dollar was generally stable, on average, relative to the currencies in most of our markets, and overall had a slight unfavorable impact on our reported results. The changes in the foreign currency exchange rates had a -3.4% unfavorable impact on revenues from services and an approximately $0.05 per share unfavorable impact on net earnings per share – diluted in the quarter. Substantially all of our subsidiaries derive revenues from services and incur expenses within the same local currency and generally do not have cross-currency transactions, and therefore, changes in foreign currency exchange rates primarily impact reported earnings and not our actual cash flow unless earnings are repatriated. To understand the performance of our underlying business, we utilize constant currency or organic constant currency variances for our consolidated and segment results.
Current wording
During the third quarter of 2024, the United States dollar was generally stable, on average, relative to the currencies in most of our markets, and overall had a slight unfavorable impact on our reported results. The changes in the foreign currency exchange rates had a -1.3% unfavorable impact on revenues from services and an approximately $0.03 per share unfavorable impact on net earnings per share – diluted in the quarter. Substantially all of our subsidiaries derive revenues from services and incur expenses within the same local currency and generally do not have cross-currency transactions, and therefore, changes in foreign currency exchange rates primarily impact reported earnings and not our actual cash flow unless earnings are repatriated. To understand the performance of our underlying business, we utilize constant currency or organic constant currency variances for our consolidated and segment results.
Previous wording
During the second quarter of 2024 compared to the second quarter of 2023, we experienced a -3.1% revenue decrease in the Americas, primarily driven by the unfavorable impact of currency exchange rates and decreased demand for our permanent recruitment services, partially offset by increased demand for our Manpower staffing services. During the second quarter of 2024 compared to the second quarter of 2023, we experienced a -5.8% revenue decrease in Southern Europe, primarily due to decreased demand for our Manpower staffing services, the unfavorable impact of currency exchange rates and decreased demand for our permanent recruitment services. During the second quarter of 2024 compared to the second quarter of 2023, we experienced a -12.1% revenue decrease in Northern Europe, primarily due to a decreased demand for our Manpower and Experis staffing/interim services, decreased demand for our Experis Solutions services, and decreased demand for our permanent recruitment services. We experienced a -9.7% revenue decrease in APME in the second quarter of 2024 compared to the second quarter of 2023 primarily due to the unfavorable impact of currency exchange rates and decreased demand for our permanent recruitment services.
Current wording
During the third quarter of 2024 compared to the third quarter of 2023, we experienced a -5.5% revenue decrease in the Americas, primarily driven by the unfavorable impact of currency exchange rates and decreased demand for our Experis interim services, partially offset by increased demand for our Manpower staffing services and increased demand for Talent Based Outsourcing (TBO). During the third quarter of 2024 compared to the third quarter of 2023, we experienced a -0.6% revenue decrease in Southern Europe, primarily due to decreased demand for our Manpower staffing services and decreased demand for our permanent recruitment services, partially offset by the favorable impact of currency exchange rates and increased demand for our Talent Solutions outplacement services. During the third quarter of 2024 compared to the third quarter of 2023, we experienced a -9.4% revenue decrease in Northern Europe, primarily due to a decreased demand for our Manpower and Experis staffing/interim services, decreased demand for our Experis Solutions services, and decreased demand for our permanent recruitment services, partially offset by the favorable impact of currency exchange rates and increased demand for our Talent Solutions outplacement services. We experienced a -0.3% revenue decrease in APME in the third quarter of 2024 compared to the third quarter of 2023 primarily due to the unfavorable impact of currency exchange rates and decreased demand for TBO and decreased demand for our permanent recruitment services, partially offset by increased demand for our Manpower staffing services.
Previous wording
From a brand perspective, we experienced revenue decreases in Manpower, Experis and Talent Solutions in the second quarter of 2024 compared to the second quarter of 2023. In our Manpower brand, the revenue decrease was primarily due to decreased demand for staffing services and our permanent recruitment services. The revenue decrease in our Experis brand was primarily due to decreased demand for interim services, our Experis Solutions services and our permanent recruitment services. On an overall basis, the revenue decrease in our Talent Solutions brand, which includes RPO, MSP and our Right Management offerings, was primarily due to decreased demand for our RPO permanent recruitment offerings. This revenue decrease in Talent Solutions was partially offset by an increase in demand for our Right Management outplacement services and our MSP business.
Current wording
From a brand perspective, we experienced revenue decreases in Manpower and Experis and a revenue increase in Talent Solutions in the third quarter of 2024 compared to the third quarter of 2023. In our Manpower brand, the revenue decrease was primarily due to decreased demand for staffing services and our permanent recruitment services. The revenue decrease in our Experis brand was primarily due to decreased demand for interim services, our Experis Solutions services and our permanent recruitment services. On an overall basis, the revenue increase in our Talent Solutions brand, which includes RPO, MSP and our Right Management offerings, was primarily due an increase in demand for our Right Management outplacement services and our MSP business, partially offset by decreased demand for our RPO permanent recruitment offerings.
Previous wording
In the second quarter of 2024, our gross profit margin decreased 40 basis points compared to the second quarter of 2023, primarily due to declines in our higher-margin permanent recruitment businesses, partially offset by growth in our higher-margin Talent Solutions outplacement business and our MSP businesses.
Current wording
In the third quarter of 2024, our gross profit margin decreased 30 basis points compared to the third quarter of 2023, primarily due to declines in our higher-margin permanent recruitment business and mix shifts and lower volumes in our staffing/interim businesses, partially offset by growth in our higher-margin Talent Solutions outplacement business.
Previous wording
The year-over-year decrease in revenues from services of -6.9% (-3.5% in constant currency and -3.3% in organic constant currency) was attributed to:
Current wording
The year-over-year decrease in revenues from services of -3.1% (-1.8% in constant currency and -1.7% in organic constant currency) was attributed to:
Previous wording
a revenue decrease in the Americas of -5.7% (increase of 1.9% in constant currency) primarily driven by the $170.1 million unfavorable impact of currency exchange rates and a $9.9 million decrease in demand for our permanent recruitment services, partially offset by increased demand of $34.8 million for our Manpower and Experis staffing/interim services and a $9.6 million increase in demand for our Manpower solutions services. The United States, our largest market in the Americas, experienced a revenue decrease of -5.1% primarily driven by a $58.3 million decrease in demand for our Manpower and
Current wording
a revenue decrease in the Americas of -5.5% (increase of 1.5% in constant currency) primarily driven by the $77.8 million unfavorable impact of currency exchange rates and a $45.8 million decrease in demand for our Experis interim services, partially offset by a $66.0 million increase in demand for our Manpower staffing services and a $7.7 million increase in demand for TBO. The United States, our largest market in the Americas, experienced a revenue decrease of -4.5% primarily driven by a $33.4 million decrease in demand for our Experis interim services;
Previous wording
a revenue decrease in Southern Europe of -5.8% (decrease of -4.4% in constant currency) primarily driven by a $90.3 million decrease in demand for our Manpower staffing services, the $31.8 million unfavorable impact of currency exchange rates and a $6.8 million decrease in demand for our permanent recruitment services, partially offset by a $4.7 million increase in demand for our Talent Solutions outplacement services. France, the largest market in Southern Europe, experienced a revenue decrease of -7.3% (-6.2% in constant currency) primarily driven by an $80.5 million decrease in demand for our Manpower staffing services and the $13.9 million unfavorable impact of currency exchange rates, partially offset by a $4.6 million increase in demand for our Talent Solutions outplacement services. Italy, our second-largest market in Southern Europe, experienced a revenue decrease of -5.0% (-3.9% in constant currency) primarily driven by an $18.6 million decrease in our Manpower staffing services and the $4.9 million unfavorable impact of currency exchange rates, partially offset by a $3.0 million increase in demand for our Manpower solutions services;
Current wording
a revenue decrease in Southern Europe of -0.6% (-1.3% in constant currency) primarily driven by a $24.6 million decrease in demand for our Manpower staffing services and a $5.4 million decrease in demand for our permanent recruitment services, partially offset by the $14.7 million favorable impact of currency exchange rates and a $6.1 million increase in demand for our Talent Solutions outplacement services. France, the largest market in Southern Europe, experienced a revenue decrease of -2.5% (-3.3% in constant currency) primarily driven by a $44.9 million decrease in demand for our Manpower staffing services, partially offset by the $9.6 million favorable impact of currency exchange rates and a $5.3 million increase in demand for our Talent Solutions outplacement services. Italy, our second-largest market in Southern Europe, experienced a revenue increase of 1.3% (0.5% in constant currency) primarily driven by the $3.5 million favorable impact of currency exchange rates and a $1.3 million increase in demand for TBO, partially offset by a $1.7 million decrease in demand for our permanent recruitment services;
Previous wording
The year-over-year 40 basis point decrease in gross profit margin was primarily attributed to:
Current wording
The year-over-year 30 basis point decrease in gross profit margin was primarily attributed to:
Previous wording
a 60 basis point unfavorable impact from decreases to permanent recruitment, including Talent Solutions RPO, as permanent hiring demand continued to soften and experienced reduced levels; and
Current wording
a 20 basis point unfavorable impact from decreases to permanent recruitment, including Talent Solutions RPO, as permanent hiring demand continued to soften and experienced reduced levels;
Previous wording
a 10 basis point unfavorable impact from the decrease in staffing/interim margins due to mix shifts and lower volumes while pricing remained stable; partially offset by
Current wording
a 10 basis point unfavorable impact from the decrease in staffing/interim margins due to mix shifts and lower volumes while pricing remained stable; and
Previous wording
a 10 basis point favorable impact due to the effects of currency exchange rates.
Current wording
a 10 basis point unfavorable impact due to the effects of currency exchange rates; partially offset by
Previous wording
a 10 basis point favorable impact from increased career transition activity in Right Management as outplacement activity increased; and
Current wording
a 10 basis point favorable impact from increased career transition activity in Right Management as outplacement activity increased.
Previous wording
a $50.8 million, or -6.9% decrease (-5.0% in constant currency) in personnel costs primarily due to a $37.7 million decrease in salary costs as we saw the effects of restructuring actions taken in 2023;
Current wording
a $16.1 million, or -3.3% decrease (-2.1% in constant currency) in personnel costs primarily due to an $8.0 million decrease in bonuses and sales commission costs and a $4.9 million decrease in salaries as we saw the effects of restructuring actions taken in 2023;
Previous wording
Selling and administrative expenses as a percent of revenues decreased 40 basis points in the second quarter of 2024 compared to the second quarter of 2023 due primarily to:
Current wording
Selling and administrative expenses as a percent of revenues decreased 40 basis points in the third quarter of 2024 compared to the third quarter of 2023 due primarily to:
Previous wording
a 10 basis point favorable impact as non-personnel costs decreased as a percent of revenues, primarily due to percent of revenue decreases in office leases and consulting and outside services; partially offset by
Current wording
a 30 basis point favorable impact as non-personnel costs decreased as a percent of revenues primarily due to percent of revenue decreases in office leases and other office costs; and
Previous wording
a 30 basis point favorable impact as a result of the restructuring costs incurred in the second quarter of 2023;
Current wording
a 10 basis point favorable impact as a result of the decrease in restructuring costs incurred in the third quarter of 2024 compared to the third quarter of 2023.
Previous wording
Interest and other expenses, net is comprised of interest, foreign exchange gains and losses and other miscellaneous non-operating income and expenses, including those associated with noncontrolling interests. Interest expense, net was $13.4 million in the second quarter of 2024 compared to $11.6 million in the second quarter of 2023 primarily due to increased revolver and other short term borrowings at a higher interest rate during the period. Foreign exchange loss, net was $1.8 million in the second quarter of 2024 compared to $5.1 million in the second quarter of 2023 primarily due to a reduction in foreign currency exchange losses year over year. Miscellaneous income, net was $6.5 million in the second quarter of 2024 compared to $4.9 million in the second quarter of 2023.
Current wording
Interest and other expenses, net is comprised of interest, foreign exchange gains and losses and other miscellaneous non-operating income and expenses, including those associated with noncontrolling interests. Interest expense, net was $16.9 million in the third quarter of 2024 compared to $13.0 million in the third quarter of 2023 primarily due to increased revolver and other short-term borrowings during the period. Foreign exchange loss, net was $1.0 million in the third quarter of 2024 compared to $6.0 million in the third quarter of 2023 primarily due to a reduction in foreign currency exchange losses year over year. Miscellaneous income, net was $6.3 million in the third quarter of 2024 compared to $3.9 million in the third quarter of 2023.
Previous wording
We recorded income tax expense at an effective rate of 34.9% for the three months ended June 30, 2024, as compared to an effective rate of 31.9% for the three months ended June 30, 2023. The 2024 rate was unfavorably impacted by the lower level and overall mix of earnings and partially offset by the scheduled reduction in the French business tax rate from 0.38% to 0.28% effective January 1, 2024. The 34.9% effective tax rate for the second quarter of 2024 was higher than the United States Federal statutory rate of 21% primarily due to the French business tax, tax losses in certain countries for which we did not recognize a corresponding tax benefit due to valuation allowances, and the overall mix of earnings.
Current wording
We recorded income tax expense at an effective rate of 61.5% for the three months ended September 30, 2024, as compared to an effective rate of 44.7% for the three months ended September 30, 2023. The 2024 rate was unfavorably impacted by the lower level and overall mix of earnings, a discrete valuation allowance recorded against deferred tax assets in Sweden, and a 2023 rate that included benefits from the effective settlement of an income tax audit. The higher 2024 rate was partially offset by the scheduled reduction in the French business tax rate from 0.38% to 0.28% effective January 1, 2024. The 61.5% effective tax rate for the third quarter of 2024 was higher than the United States Federal statutory rate of 21% primarily due to tax losses in certain countries for which we did not recognize a corresponding tax benefit due to valuation allowance, the French business tax, and the overall mix of earnings.
Previous wording
Net earnings per share - diluted was $1.24 in the second quarter of 2024 compared to $1.29 in the second quarter of 2023. Losses related to our Proservia Germany wind down in the second quarter of 2024 unfavorably impacted net earnings per share - diluted by approximately $0.06, net of tax, in the second quarter of 2024.
Current wording
Net earnings per share - diluted was $0.47 in the third quarter of 2024 compared to $0.60 in the third quarter of 2023. Restructuring costs recorded in the third quarter of 2024 unfavorably impacted net earnings per share - diluted by approximately $0.82, net of tax, in the third quarter of 2024. Restructuring costs recorded in the third quarter of 2023 unfavorably impacted net earnings per share - diluted by approximately $0.68, net of tax, in the third quarter of 2023.
Previous wording
Weighted average shares - diluted decreased to 48.4 million in the second quarter of 2024 from 50.7 million in the second quarter of 2023. This decrease was due to the impact of share repurchases completed since the second quarter of 2023, partially offset by grants of share-based awards.
Current wording
Weighted average shares - diluted decreased to 48.1 million in the third quarter of 2024 from 50.1 million in the third quarter of 2023. This decrease was due to the impact of share repurchases completed since the third quarter of 2023, partially offset by grants of share-based awards.
Previous wording
The following table presents selected consolidated financial data for the six months ended June 30, 2024 as compared to 2023.
Current wording
The following table presents selected consolidated financial data for the nine months ended September 30, 2024 as compared to 2023.
Previous wording
The year-over-year decrease in revenues from services of -7.1% (-4.5% in constant currency and -4.3% in organic constant currency) was attributed to:
Current wording
The year-over-year decrease in revenues from services of -5.8% (-3.6% in constant currency and -3.4% in organic constant currency) was attributed to:
Previous wording
a revenue decrease in the Americas of -3.1% (increase of 5.0% in constant currency) primarily driven by the $88.8 million unfavorable impact of currency exchange rates and a $3.6 million decrease in demand for our permanent recruitment services, partially offset by increased demand of $61.9 million for our Manpower staffing services. The United States, our largest market in the Americas, experienced a revenue decrease of -1.7% primarily driven by a $5.3 million decrease in demand for our permanent recruitment services and a $3.9 million decrease in demand for our Manpower and Experis staffing/interim services;
Current wording
a revenue decrease in the Americas of -5.7% (increase of 1.8% in constant currency) primarily driven by the $247.9 million unfavorable impact of currency exchange rates, a $116.3 million decrease in demand for our Experis interim services and a $10.2 million decrease in demand for our permanent recruitment services, partially offset by a $158.8 million increase in demand for our Manpower staffing services, a $17.3 million increase in demand for TBO and an $8.2 million increase in demand for our Talent Solutions outplacement services. The United States, our largest market in the Americas, experienced a revenue decrease of -4.9% primarily driven by a $100.7 million decrease in demand for our Manpower and Experis staffing/interim services and a $12.2 million decrease in demand for our permanent recruitment services, partially offset by a $7.1 million increase in demand for our Talent Solutions outplacement services;
Previous wording
a revenue decrease in Southern Europe of -5.0% (-4.6% in constant currency) primarily driven by a $185.0 million decrease in demand for our Manpower and Experis staffing/interim services, the $17.1 million unfavorable impact of currency exchange rates, a $12.0 million decrease in demand for our permanent recruitment services and a $9.7 million decrease in demand for our Manpower and Experis solutions services, partially offset by a $7.1 million increase in demand for our Talent Solutions outplacement services. France, the largest market in Southern Europe, experienced a revenue decrease of -5.9% (-5.8% in constant currency) primarily driven by a $140.4 million decrease in demand for our Manpower staffing services and a $4.2 million decrease in demand for our permanent recruitment services, partially offset by a $6.5 million increase in demand for our Talent Solutions outplacement services. Italy, our second-largest market in Southern Europe, experienced a revenue decrease of -4.6% (-4.6% in constant currency) primarily driven by a $40.6 million decrease in our Manpower staffing services and a $3.6 million decrease in demand for our permanent recruitment services, partially offset by a $2.6 million increase in demand for our Manpower solutions services;
Current wording
a revenue decrease in Southern Europe of -3.6% (-3.5% in constant currency) primarily driven by a $220.8 million decrease in demand for our Manpower and Experis staffing/interim services, a $17.5 million decrease in demand for our permanent recruitment services and a $4.8 million decrease in demand for our Manpower and Experis solutions services, partially offset by a $13.1 million increase in demand for our Talent Solutions outplacement services. France, the largest market in Southern Europe, experienced a revenue decrease of -4.7% (-5.0% in constant currency) primarily driven by a $185.3 million decrease in demand for our Manpower staffing services, partially offset by an $11.8 million increase in demand for our Talent Solutions outplacement services. Italy, our second-largest market in Southern Europe, experienced a revenue decrease of -2.7% (-3.0% in constant currency) primarily driven by a $37.3 million decrease in our Manpower staffing services and a $5.3 million decrease in demand for our permanent recruitment services, partially offset by a $3.9 million increase in demand for TBO;
Previous wording
The year-over-year 60 basis point decrease in gross profit margin was primarily attributed to:
Current wording
The year-over-year 50 basis point decrease in gross profit margin was primarily attributed to:
Previous wording
a $22.4 million, or -7.2% decrease (-4.5% in constant currency) in personnel costs primarily due to a $14.2 million decrease in salary costs as we saw the effects of restructuring actions taken in 2023;
Current wording
a $61.1 million, or -5.7% decrease (-4.1% in constant currency) in personnel costs primarily due to a $39.8 million decrease in salary costs as we saw the effects of restructuring actions taken in 2023;
Previous wording
a $16.4 million, or -6.0% decrease (-3.7% in constant currency) in non-personnel costs, primarily due to a $9.4 million decrease in office lease and other office costs and an $8.0 million decrease in consulting and outside services costs associated with our technology and back-office transformation initiatives.
Current wording
a $22.2 million, or -5.1% decrease (-3.4% in constant currency) in non-personnel costs, primarily due to an $8.0 million decrease in office lease and other office costs and a $5.2 million decrease in consulting and outside services costs associated with our technology and back-office transformation initiatives.
Previous wording
Selling and administrative expenses as a percent of revenues decreased 10 basis points in the first half 2024 compared to the first half of 2023 due primarily to:
Current wording
Selling and administrative expenses as a percent of revenues decreased 20 basis points in the first nine months of 2024 compared to the first nine months of 2023 due primarily to:
Previous wording
Interest and other expenses, net is comprised of interest, foreign exchange gains and losses and other miscellaneous non-operating income and expenses, including those associated with noncontrolling interests. Interest expense, net was $25.7 million in the first half of 2024 compared to $22.2 million in the first half of 2023 primarily due to increased revolver and other short-term borrowings at a higher interest rate during the period. Foreign exchange loss, net was $4.2 million in the first half of 2024 compared to $8.2 million in the first half of 2023 primarily due to a reduction in foreign currency exchange losses year over year. Miscellaneous income, net was $12.8 million in the first half of 2024 compared to $11.1 million in the first half of 2023.
Current wording
Interest and other expenses, net is comprised of interest, foreign exchange gains and losses and other miscellaneous non-operating income and expenses, including those associated with noncontrolling interests. Interest expense, net was $42.6 million in the first nine months of 2024 compared to $35.2 million in the first nine months of 2023 primarily due to increased revolver and other short-term borrowings at a higher interest rate during the period. Foreign exchange loss, net was $5.2 million in the first nine months of 2024 compared to $14.2 million in the first nine months of 2023 primarily due to a reduction in foreign currency exchange losses year over year. Miscellaneous income, net was $19.1 million in the first nine months of 2024 compared to $15.0 million in the first nine months of 2023.
Previous wording
We recorded income tax expense at an effective rate of 33.4% for the six months ended June 30, 2024, as compared to an effective rate of 30.6% for the six months ended June 30, 2023. The 2024 rate was unfavorably impacted by the lower level and overall mix of earnings and partially offset by the scheduled reduction in the French business tax rate from 0.38% to 0.28% effective January 1, 2024. The 33.4% effective tax rate for the first half of 2024 was higher than the United States Federal statutory rate of 21% primarily due to the French business tax, tax losses in certain countries for which we did not recognize a corresponding tax benefit due to valuation allowances, and the overall mix of earnings.
Current wording
We recorded income tax expense at an effective rate of 41.4% for the nine months ended September 30, 2024, as compared to an effective rate of 33.6% for the nine months ended September 30, 2023. The 2024 rate was unfavorably impacted by the lower level and overall mix of earnings, a discrete valuation allowance recorded against deferred tax assets in Sweden, and a 2023 rate that included benefits from the effective settlement of an income tax audit. The higher 2024 rate was partially offset by the scheduled reduction in the French business tax rate from 0.38% to 0.28% effective January 1, 2024. The 41.4% effective tax rate for the nine months ended September 30, 2024 was higher than the United States Federal statutory rate of 21% primarily due to tax losses in certain countries for which we did not recognize a corresponding tax benefit due to valuation allowances, the French business tax, and the overall mix of earnings.
Previous wording
Net earnings per share - diluted was $2.05 in the first half of 2024 compared to $2.80 in the first half of 2023. Losses related to our Proservia Germany wind down in the first half of 2024 unfavorably impacted net earnings per share - diluted by approximately $0.19, net of tax, in the first half of 2024.
Current wording
Net earnings per share - diluted was $2.53 in the first nine months of 2024 compared to $3.42 in the first nine months of 2023. Restructuring costs recorded in the first nine months of 2024 unfavorably impacted net earnings per share - diluted by approximately $0.82, net of tax, in the first nine months of 2024. Losses related to our Proservia Germany wind down in the first nine months of 2024 unfavorably impacted net earnings per share - diluted by approximately $0.19, net of tax, in the first nine months of 2024. Restructuring costs recorded in the first nine months of 2023 unfavorably impacted net earnings per share - diluted by approximately $1.00, net of tax, in the first nine months of 2023.
Previous wording
Weighted average shares - diluted decreased to 48.7 million in the first half of 2024 from 51.0 million in the first half of 2023. This decrease was due to the impact of share repurchases completed since the first half of 2023, partially offset by grants of share-based awards.
Current wording
Weighted average shares - diluted decreased to 48.5 million in the first nine months of 2024 from 50.7 million in the first nine months of 2023. This decrease was due to the impact of share repurchases completed since the first nine months of 2023, partially offset by grants of share-based awards.
Previous wording
In the Americas, revenues from services decreased -3.1% (increase of 5.0% in constant currency) in the second quarter of 2024 compared to the second quarter of 2023. In the United States (which represents 65% of the Americas' revenues), revenues from services decreased -1.7% in the second quarter of 2024 compared to the second quarter of 2023, primarily driven by a $5.3 million decrease in demand for our permanent recruitment services and a $3.9 million decrease in demand for our Manpower and Experis staffing/interim services. In Other Americas, revenues from services decreased -5.7% (increase of 17.1% in constant currency) in the second quarter of 2024 compared to the second quarter of 2023, primarily driven by the $88.8 million unfavorable impact of foreign currency exchange rates, partially offset by a $56.3 million increase in demand for our Manpower and Experis staffing/interim services. The constant currency increase in Other Americas was primarily due to inflation in Argentina. Within our Other Americas segment, we experienced decreases in Argentina and Canada of $19.6 million, or -39.2%, and $9.1 million, or -10.2%, respectively (+132.5% and -8.5%, respectively, in constant currency), partially offset by a revenue increase in Mexico of $6.4 million, or 10.9% (8.1% in constant currency).
Current wording
In the Americas, revenues from services decreased -5.5% (increase of 1.5% in constant currency) in the third quarter of 2024 compared to the third quarter of 2023. In the United States (which represents 66% of the Americas' revenues), revenues from services decreased -4.5% in the third quarter of 2024 compared to the third quarter of 2023, primarily driven by a $33.4 million decrease in demand for our Experis interim services. In Other Americas, revenues from services decreased -7.3% (increase of 13.1% in constant currency) in the third quarter of 2024 compared to the third quarter of 2023, primarily driven by the $77.8 million unfavorable impact of foreign currency exchange rates, partially offset by a $41.1 million increase in demand for our Manpower and Experis staffing/interim services and a $7.9 million increase in demand for TBO. The constant currency increase in Other Americas was primarily due to inflation in Argentina. Within our Other Americas segment, we experienced decreases in Argentina, Canada and Mexico of $14.7 million, or -32.7%, $10.7 million, or -12.2% and $5.8 million, or -9.5%, respectively (+105.2%, -10.7% and +0.4%, respectively, in constant currency).
Previous wording
In the Americas, revenues from services decreased -5.7% (increase of 1.9% in constant currency) in the first half of 2024 compared to the first half of 2023. In the United States, revenues from services decreased -5.1% in the first half of 2024 compared to the first half of 2023, primarily driven by a $58.3 million decrease in demand for our Manpower and Experis staffing/interim services and a $12.5 million decrease in demand for our permanent recruitment services, partially offset by a $4.6 million increase in demand for our Talent Solutions outplacement services. In Other Americas, revenues from services decreased -7.0% (increase of 14.8% in constant currency) in the first half of 2024 compared to the first half of 2023, primarily driven by the $170.1 million unfavorable impact of foreign currency exchange rates, partially offset by a $98.8 million increase in demand for our Manpower and Experis staffing/interim services. The constant currency increase in Other Americas was primarily due to inflation in Argentina. Within our Other Americas segment, we experienced decreases in Argentina and Canada of $38.4 million, or -39.9%, and $29.1 million, or -15.6%, respectively (+144.4% and -14.9%, respectively, in constant currency), partially offset by a revenue increase in Mexico of $17.6 million, or 15.5% (8.9% in constant currency).
Current wording
In the Americas, revenues from services decreased -5.7% (increase of 1.8% in constant currency) in the first nine months of 2024 compared to the first nine months of 2023. In the United States, revenues from services decreased -4.9% in the first nine months of 2024 compared to the first nine months of 2023, primarily driven by a $100.7 million decrease in demand for our Manpower and Experis staffing/interim services and a $12.2 million decrease in demand for our permanent recruitment services, partially offset by a $7.1 million increase in demand for our Talent Solutions outplacement services. In Other Americas, revenues from services decreased -7.1% (increase of 14.2% in constant currency) in the first nine months of 2024 compared to the first nine months of 2023, primarily driven by the $247.9 million unfavorable impact of foreign currency exchange rates, partially offset by a $139.9 million increase in demand for our Manpower and Experis staffing/interim services and a $17.6 million increase in demand for TBO. The constant currency increase in Other Americas was primarily due to inflation in Argentina. Within our Other Americas segment, we experienced decreases in Argentina and Canada of $53.1 million, or -37.6%, and $39.7million, or -14.5%, respectively (+131.9% and -13.6%, respectively, in constant currency), partially offset by a revenue increase in Mexico of $11.7 million, or 6.7% (+5.9% in constant currency).
Previous wording
Gross profit margin decreased 60 basis points in the second quarter of 2024 compared to the second quarter of 2023 primarily due to decreased margins in our staffing and interim services, particularly within Experis, which contributed 50 basis points to the decrease, decreased activity in our permanent recruitment business which contributed 50 basis points to the decrease and decreased margins in our Talent Solutions outplacement business which contributed 10 basis points to the decrease. These contributions were partially offset by the favorable impact of currency exchange rates, which had a 50 basis point offsetting impact.
Current wording
Gross profit margin decreased 30 basis points in the third quarter of 2024 compared to the third quarter of 2023. This decrease was primarily due to decreased margins in our staffing and interim services, which contributed 70 basis points to the decrease. These decreases were partially offset by increased activity in our permanent recruitment business which had a 20 basis point impact and increased margins in our Talent Solutions outplacement business which had a 20 basis point impact.
Previous wording
Gross profit margin decreased 70 basis points in the first half of 2024 compared to the first half of 2023 primarily due to decreased margins in our staffing and interim services, particularly within Experis, which contributed 80 basis points to the decrease, and decreased activity in our permanent recruitment business which contributed 50 basis points to the decrease. These contributions were partially offset by increased demand in our higher-margin Right Management outplacement business, which had a 10 basis point offsetting impact and the favorable impact of currency exchange rates, which had a 50 basis point offsetting impact.
Current wording
Gross profit margin decreased 60 basis points in the first nine months of 2024 compared to the first nine months of 2023. This decrease was primarily due to decreased margins in our staffing and interim services, which contributed 80 basis points to the decrease, and decreased activity in our permanent recruitment business which contributed 30 basis points to the decrease. These contributions were partially offset by increased demand in our higher-margin Right Management outplacement business, which had a 10 basis point impact and the favorable impact of currency exchange rates, which had a 40 basis point impact.
Previous wording
Operating Unit Profit (“OUP”) increased 4.4% (10.9% in constant currency), in the second quarter of 2024, which represents a 4.2% OUP margin, an increase from 3.9% in the second quarter of 2023. This increase was primarily due to increased profitability in our United States business of $4.3 million, which experienced decreases to selling and administrative expenses, partially offset by decreases in higher-margin permanent recruitment revenues, as noted above. In the United States, OUP margin increased to 3.9% in the second quarter of 2024 from 3.3% in the second quarter of 2023 primarily due to a decrease in our selling and administrative expenses as a percent of revenue, partially offset by decreased activity in our higher-margin permanent recruitment business, as noted above. Other Americas OUP margin decreased to 4.8% in the second quarter of 2024 from 5.2% in the second quarter of 2023 primarily due to an increase in our selling and administrative expenses as a percent of revenue, partially offset by an increase in our gross profit margin as we saw a change in business mix towards higher margin Manpower staffing work.
Current wording
Operating Unit Profit (“OUP”) decreased -4.6% (-2.7% in constant currency) in the third quarter of 2024, which represents a 3.4% OUP margin, remaining flat from 3.4% in the third quarter of 2023. This OUP decrease was primarily due to decreased profitability in our United States business of $2.2 million, which experienced decreased demand in our higher-margin Experis interim services, as noted above. In the United States, OUP margin decreased to 3.2% in the third quarter of 2024 from 3.4% in the third quarter of 2023 primarily due to decreased activity and margins in our staffing/interim business, partially offset by a decrease in our selling and administrative expenses as a percent of revenue. Other Americas OUP margin increased to 3.9% in the third quarter of 2024 from 3.5% in the third quarter of 2023 primarily due to a decrease in our selling and administrative expenses as a percent of revenue, partially offset by decreased activity in our higher margin permanent recruitment business.
Previous wording
OUP decreased -22.5% (-17.6% in constant currency), in the first half of 2024, which represents a 3.4% OUP margin, a decrease from 4.1% in the first half of 2023. This decrease was primarily due to decreased profitability in our United States business of $13.8 million, which experienced decreased activity in our higher-margin permanent recruitment business, as noted above, partially offset by decreases to selling and administrative expenses. In the United States, OUP margin decreased to 2.9% in the first half of 2024 from 3.7% in the first half of 2023 primarily due to decreased activity in our higher-margin permanent recruitment and Manpower staffing businesses, as noted above, partially offset by a decrease in our selling and administrative expenses as a percent of revenue. Other Americas OUP margin decreased to 4.4% in the first half of 2024 from 5.0% in the first half of 2023 primarily due to an increase in our selling and administrative expenses as a percent of revenue.
Current wording
OUP decreased -17.3% (-13.3% in constant currency) in the first nine months of 2024, which represents a 3.4% OUP margin, a decrease from 3.9% in the first nine months of 2023. This decrease was primarily due to decreased profitability in our United States business of $16.0 million, which experienced decreased activity in our higher-margin permanent recruitment business, as noted above, partially offset by decreases to selling and administrative expenses. In the United States, OUP margin decreased to 3.0% in the first nine months of 2024 from 3.6% in the first nine months of 2023 primarily due to decreased activity in our higher-margin permanent recruitment and Manpower and Experis staffing/interim businesses, as noted above, partially offset by a decrease in our selling and administrative expenses as a percent of revenue. Other Americas OUP margin decreased to 4.2% in the first nine months of 2024 from 4.5% in the first nine months of 2023 primarily due to an increase in our selling and administrative expenses as a percent of revenue.
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Previous report — wording carried elsewhere
a 10 basis point unfavorable impact from changes in currency exchange rates.