8

                                
                                
                          UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                      WASHINGTON, DC  20549
                                
                           FORM 10-QSB
[X]       Quarterly Report Under Section 13 or 15(d) of the
                   Securities Exchange Act of 1934

        For the quarterly period ended December 31, 1995
                                
                               or
                                
[ ]       Transition Report Pursuant to Section 13 or 15(d) of
               the Securities Exchange Act of 1934
                                
     For the transition period from __________ to __________

                 Commission File Number:  1-5707


              GENERAL EMPLOYMENT ENTERPRISES, INC.
(Exact name of small business issuer as specified in its charter)


          Illinois                            36-6097429
(State or other jurisdiction of                  I.R.S. Employer
incorporation or organization)                Identification
Number)

        One Tower Lane, Oakbrook Terrace, Illinois 60181
            (Address of principal executive offices)

                         (708) 954-0400
                   (Issuer's telephone number)



     Check whether the issuer (1) filed all reports required to
be filed by Section 13 or 15(d) of the Exchange Act during the
past 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.

                                                  Yes  X    No __

     As of January 31, 1996, there were 2,195,985 shares of
common stock outstanding.



                 PART I.  FINANCIAL INFORMATION
                                
GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEET
                                        December 31 September 30
                                               1995         1995
(Dollars in Thousands)                  (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents                   $ 2,582      $ 3,225
Accounts receivable, less allowances
  (Dec. 1995--$312; Sept. 1995--$290)         2,261        1,803
Other current assets                             51           57
  Total current assets                        4,894        5,085

Property and equipment:
Property and equipment, at cost               2,505        2,473
Accumulated depreciation and amortization   (2,167)      (2,141)
  Net property and equipment                    338          332

Other assets                                    385          408

  Total assets                              $ 5,617      $ 5,825


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accrued compensation and payroll taxes      $ 1,765      $ 2,169
Other current liabilities                       683          670
  Total current liabilities                   2,448        2,839

Long-term obligations                           422          443

Shareholders' equity:
Common stock, no-par value; authorized --
  5,000,000 shares; issued and outstanding --
  2,195,985 shares                               22           22
Capital in excess of stated value of shares   3,494        3,494
Accumulated deficit                           (769)        (973)
  Total shareholders' equity                  2,747        2,543

  Total liabilities and shareholders' equity$ 5,617      $ 5,825
See notes to consolidated financial statements.


GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
                                                    Three Months
                                               Ended December 31
(In Thousands, Except Per Share)                   1995     1994

Net revenues:
Permanent placement services                    $ 3,478  $ 2,735
Contract services                                 1,519    1,043
  Net revenues                                    4,997    3,778

Costs and expenses:
Cost of services                                  3,635    2,896
General and administrative                          848      656

Income before income taxes                          514      226
Provision for income taxes                          200       10

Net income                                      $   314  $   216

Net income per share                            $   .14  $   .10
See notes to consolidated financial statements.


GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
                                                  Three Months
                                              Ended December 31
(In Thousands)                                     1995    1994

Operating activities:
Net income                                        $ 314   $ 216
Noncash costs and expenses                           33    (60)
Changes in current assets and current liabilities -
  Accounts receivable                             (458)     (1)
  Accrued compensation and payroll taxes          (404)   (542)
  Other, net                                         19      33
  Net cash used by operating activities           (496)   (354)

Investing activities                               (37)    (27)

Financing activities:
Cash dividends declared                           (110)     --
Exercises of stock options                           --     126
  Net cash provided (used) by financing activities(110)     126

Decrease in cash and cash equivalents             (643)   (255)
Cash and cash equivalents at beginning of period  3,225   1,843

Cash and cash equivalents at end of period       $2,582  $1,588

Supplementary information:
Income tax payments                              $  218  $   14
See notes to consolidated financial statements.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Interim Financial Statements

The accompanying financial information for interim periods is
unaudited but includes all adjustments (consisting only of normal
recurring adjustments) which the Company considers necessary for
a fair presentation of the results for the periods.  This
financial information should be read in conjunction with the
financial statements included in the Company's annual report on
Form 10-KSB for the year ended September 30, 1995.  Operating
results for interim periods are not necessarily indicative of the
results that may be expected for the entire year.


Income Taxes

The effective income tax rate for the 1994 quarter differs from
the "expected" rate because of the reversal of a previously-
recorded deferred income tax valuation allowance.


Net Income Per Share

Net income per share is based on the average number of common
shares outstanding and dilutive stock option shares -- 2,261,865
shares in the December 1995 quarter and 2,234,847 shares in the
December 1994 quarter.  The number of shares and per-share
amounts for the 1994 quarter have been adjusted to reflect a 15%
stock dividend paid on November 3, 1995.


Dividends Declared

In November 1995, the Company's board of directors declared a
cash dividend of $.05 per common share, payable on January 17,
1996.


MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

Economic Factors and Corporate Strategies

The Company is engaged in providing employment services in major
metropolitan business centers throughout the United States.
During the 1995 quarter the Company opened one new office,
bringing the total number of offices to 25 as of December 31,
1995.  The Company has announced its intention to open six
additional offices during the remainder of the fiscal year, and
this is expected to have a positive effect on net revenues for
the future.

One of the Company's corporate strategies since October 1992 has
been to market both permanent placement and contract services
through all of its offices, thereby providing the Company's
customers with a choice of staffing alternatives.  This strategy
has been a major factor in the Company's revenue growth over the
last two years.


The Company's business is strongly affected by the U.S. economy
and national hiring levels. During the last two years, the
national economy has experienced a period of relatively stable
growth and historically low levels of unemployment.  The Gross
Domestic Product increased at an estimated rate of 3.3% in 1995
and at an average rate of 4.1% in 1994, and the national
unemployment rate was 5.6% in December 1995.  These economic
conditions have been favorable for the Company's business.


Results of Operations

For the three months ended December 31, 1995, consolidated
revenues were $4,997,000, up $1,219,000 (32%) from last year's
$3,778,000.  Permanent placement revenues increased $743,000
(27%), on 8% more placements and an 18% higher average placement
fee.  Contract service revenues increased $476,000 (46%), due to
a 26% increase in billable hours and a 9% higher average hourly
billing rate.

The consolidated cost of services for the three months ended
December 31, 1995 was $3,635,000, up $739,000 (26%) from 1994.
Agency manager and consultant compensation increased 24%, and
salaries of contract service workers increased 35%, as a result
of the higher volume of business this year.  Payroll taxes and
benefits increased 31%; advertising expenses increased 36%; and
all other operating costs increased by 7%.  As a result, the cost
of services as a percent of service revenues decreased 4.0
points, from 76.7% last year to 72.7% this year.

General and administrative expenses for the three months ended
December 31, 1995 were $848,000, a $192,000 (29%) increase from
1994.  Administrative salaries and benefits increased 35%, while
all other general and administrative expenses were up 18% for the
period.

There was a $200,000 provision for income taxes in the 1995
period, compared with a $10,000 provision last year.  The
effective income tax rate for the 1994 quarter differs from the
statutory rate because of the reversal of a previously-recorded
deferred income tax valuation allowance.

Net income was $314,000, or $.14 per share, in the three months
ended December 31, 1995, a $98,000 improvement compared with net
income of $216,000, or $ .10 per share, last year.


Financial Condition

During the three months ended December 31, 1995, the Company's
cash and cash equivalents decreased by $643,000 to a balance of
$2,582,000.  Net income provided $314,000 during the period.
However, an increase in accounts receivable required $458,000,
and a seasonal reduction of accrued payroll liabilities required
$404,000.  The Company's net working capital was $2,446,000 as of
December 31, 1995, compared with $2,246,000 at September 30,
1995, and shareholders' equity was $2,747,000 at December 31,
1995, compared with $2,543,000 last September.

As of December 31, 1995, the Company had no debt outstanding, and
it had a $1,000,000 line of credit available for working capital
purposes. Management believes that existing resources are
adequate to meet the Company's current operating needs.

As of December 31, 1995, the Company had no commitments for the
acquisition of property and equipment.  All of its facilities are
leased, and information about future minimum lease payments is
presented in the notes to consolidated financial statements
contained in the Company's annual report on Form 10-KSB for the
year ended September 30, 1995.  The cost of opening new offices
during fiscal 1996 is expected to be minor because the facilities
will be leased.




                   PART II - OTHER INFORMATION

Item 6  Exhibits and Reports on Form 8-K

The following exhibits are filed as part of this report:

No.  Description of Exhibit

 3   By-Laws, as amended November 21, 1995.

10   Resolution of the Board of Directors, adopted November 21, 1995,
     establishing a Senior Executive Bonus Pool for fiscal 1996.

27   Financial Data Schedule for the three months ended December 31, 1995.


There were no reports on Form 8-K filed during the quarter.



                           SIGNATURES

In accordance with the requirements of the Exchange Act, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.


                          GENERAL EMPLOYMENT ENTERPRISES, INC.
                                       (Registrant)


Date:  February 13, 1996      By:   /s/  Herbert F. Imhoff
                              Herbert F. Imhoff
                              Chairman of the Board
                              and President


Date:  February 13, 1996      By:   /s/  Kent M. Yauch
                              Kent M. Yauch
                              Treasurer and Controller