U.S. 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 June 30, 2008

  [ ]  Transition Report Pursuant to Section 13 or 15(d) of the Securities
       Exchange Act of 1934

                       Commission File Number 1-05707


                     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, Suite 2200, Oakbrook Terrace, Illinois 60181
                  (Address of principal executive offices)

                                (630) 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 [ ]

Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act).                Yes [ ]    No [X]

The number of shares outstanding of the issuer's common stock as of
June 30, 2008 was 5,165,265.

Transitional small business disclosure format:     Yes [ ]    No [X]





                       PART I - FINANCIAL INFORMATION

Item 1, Financial Statements.

GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEET
                                                    June 30    September 30
                                                       2008            2007
(In Thousands)                                   (Unaudited)

ASSETS
Current assets:
Cash and cash equivalents                            $4,267          $6,344
Accounts receivable, less allowances
   (June 2008--$187; Sept. 2007--$248)                1,537           1,915
Other current assets                                    455             252

Total current assets                                  6,259           8,511
Property and equipment, net                             849             929
Other assets                                            441             436

Total assets                                         $7,549          $9,876


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accrued compensation                                 $1,130          $1,602
Other current liabilities                               444             514

Total current liabilities                             1,574           2,116

Other liabilities                                       441             436

Shareholders' equity:
Preferred stock, authorized -- 100 shares;
   issued and outstanding -- none                        --              --
Common stock, no-par value; authorized --
   20,000 shares; issued and outstanding --
   5,165 shares in June 2008 and
   5,153 shares in September 2007                     4,971           4,912
Retained earnings                                       563           2,412

Total shareholders' equity                            5,534           7,324

Total liabilities and shareholders' equity           $7,549          $9,876

See notes to consolidated financial statements.

                                     2


GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
                                          Three Months          Nine Months
                                         Ended June 30        Ended June 30
(In Thousands, Except Per Share)        2008      2007       2008      2007

Net revenues:
Contract services                     $1,805    $1,942    $ 5,665   $ 6,255
Placement services                     1,817     2,922      5,810     8,413

Net revenues                           3,622     4,864     11,475    14,668

Operating expenses:
Cost of contract services              1,207     1,306      3,816     4,224
Selling                                1,232     1,856      3,885     5,308
General and administrative             1,779     1,601      5,170     4,791

Total operating expenses               4,218     4,763     12,871    14,323

Income (loss) from operations           (596)      101     (1,396)      345
Investment income                         14        83         64       225

Net income (loss)                     $ (582)   $  184    $(1,332)  $   570

Average number of shares:
Basic                                  5,165     5,151      5 163     5,149
Diluted                                5,165     5,399      5,163     5,372

Net income (loss) per share:
Basic                                 $ (.11)   $  .04    $  (.26)  $   .11
Diluted                               $ (.11)   $  .03    $  (.26)  $   .11

Cash dividends declared per share     $   --    $   --    $   .10   $   .10

See notes to consolidated financial statements.

                                     3


GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
                                                                Nine Months
                                                              Ended June 30
(In Thousands)                                         2008            2007

Operating activities:
Net income (loss)                                   $(1,332)         $  570
Depreciation and other noncurrent items                 245             220
Accounts receivable                                     378             192
Accrued compensation                                   (472)            339
Other current items, net                               (273)           (309)

Net cash provided (used) by operating activities     (1,454)          1,012

Investing activities:
Acquisition of property and equipment                  (116)           (334)

Financing activities:
Exercises of stock options                               10               5
Cash dividends paid                                    (517)           (515)

Net cash used by financing activities                  (507)           (510)

Increase (decrease) in cash and cash equivalents     (2,077)            168
Cash and cash equivalents at beginning of period      6,344           5,904

Cash and cash equivalents at end of period          $ 4,267          $6,072

See notes to consolidated financial statements.

                                     4



GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY (Unaudited)
                                                                Nine Months
                                                              Ended June 30
(In Thousands)                                           2008          2007

Common shares outstanding:
Number at beginning of period                           5,153         5,148
Exercises of stock options                                 12             5

Number at end of period                                 5,165         5,153

Common stock:
Balance at beginning of period                        $ 4,912        $4,839
Stock compensation expense                                 49            47
Exercises of stock options                                 10             5

Balance at end of period                              $ 4,971        $4,891

Retained earnings:
Balance at beginning of period                        $ 2,412        $2,013
Net income (loss)                                      (1,332)          570
Cash dividends declared                                  (517)         (515)

Balance at end of period                              $   563        $2,068

See notes to consolidated financial statements.

                                     5




NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)


Basis of Presentation

The consolidated financial statements are prepared in conformity with
accounting principles generally accepted in the United States of America and
the rules of the United States Securities and Exchange Commission.  In the
opinion of management, all adjustments (consisting only of normal recurring
adjustments) necessary for a fair presentation of the financial statements
have been included.  Interim results are not necessarily indicative of
results for a full year.  These financial statements should be read in
conjunction with the financial statements included in the Company's annual
report on Form 10-KSB for the fiscal year ended September 30, 2007.


Recent Accounting Pronouncements

The Company adopted the requirements of Financial Accounting Standards
Board Financial Interpretation No. 48, "Accounting for Uncertainty in
Income Taxes," as of October 1, 2007.  The interpretation specifies how a
position taken on a tax return is to be measured, recognized and disclosed
in the financial statements.  The adoption of it did not have a material
effect on the Company's financial statements.


Income Taxes

There were no credits for income taxes as a result of the pretax losses in
the 2008 periods, because there was not sufficient assurance that future tax
benefits would be realized.  There were no provisions for income taxes in
the 2007 periods, because of the availability of losses carried forward
from prior years.


Purchase Commitments

As of June 30, 2008, the Company had contractual obligations to
purchase approximately $1,000,000 of recruitment advertising through
December 31, 2009.


Subsequent Event

In July 2008, the Company closed one of its branch offices due to
unprofitable operations.  The closing cost, to be recorded in the fourth
quarter, is estimated to be approximately $70,000.



Item 2, Management's Discussion and Analysis of Financial Condition and
Results of Operations.


Overview

The Company provides contract and placement staffing services for business
and industry, specializing in the placement of information technology,
engineering and accounting professionals.  As of June 30, 2008, the
Company operated 18 offices located in 9 states.

                                     6

The Company's business is highly dependent on national employment trends in
general and on the demand for professional staff in particular.  As an
indicator of employment conditions, the national unemployment rate was 5.5%
in June 2008 and 4.6% in June 2007.  The change indicates a trend toward
a lower level of employment in the United States during the last twelve
months.

During the nine months ended June 30, 2008, the U.S. economy experienced a
period of uncertainty stemming from problems in the housing and credit
markets, and the rate of growth in national payroll employment turned
negative.  Management believes that employers became very cautious about
hiring during the period.  As a result, the Company experienced sharp
declines in both the number of placements and the number of billable
contract hours.

Consolidated net revenues for the nine months ended June 30, 2008 decreased
22% compared with the prior year.  Placement service revenues were down 31%,
and contract service revenues were down 9%.  The effects of lower
consolidated net revenues resulted in a $1,396,000 loss from operations this
year, compared with $345,000 of income from operations last year.

The Company's current strategy is to improve performance by enhancing staff
training programs, to limit losses by closing unprofitable operations and to
maintain control over operating costs.

Because long-term contracts are not a significant part of the Company's
business, future results cannot be reliably predicted by considering past
trends or by extrapolating past results.


Results of Operations

A summary of operating data, expressed as a percentage of consolidated net
revenues, is presented below.


                                                                Nine Months
                                                              Ended June 30
                                                             2008      2007

Net revenues:
Contract services                                            49.4%     42.6%
Placement services                                           50.6      57.4

Net revenues                                                100.0     100.0

Operating expenses:
Cost of contract services                                    33.3      28.8
Selling                                                      33.9      36.2
General and administrative                                   45.0      32.6

Total operating expenses                                    112.2      97.6%

Income (loss) from operations                               (12.2)%     2.4%

                                     7






Net Revenues
Consolidated net revenues for the nine months ended June 30, 2008 were down
$3,193,000 (22%) from the prior year.  Placement service revenues decreased
$2,603,000 (31%), and contract service revenues decreased $590,000 (9%).

As a result of the weaker economic conditions that prevailed during the nine
months ended June 30, 2008, the Company experienced less demand for its
services.  The decline in consolidated net revenues was the result of 33%
fewer placements and an 11% decrease in the number of billable contract
hours.


Operating Expenses
Total operating expenses for the nine months ended June 30, 2008 were down
$1,452,000 (10%) compared with the prior year.

The cost of contract services was down $408,000 (10%) as a result of the
lower volume of contract business.  The gross profit margin on contract
business was 32.6% for the nine months ended June 30, 2008, which was about
the same as the prior year.  There are no direct costs associated
with placement service revenues.

Selling expenses decreased $1,423,000 (27%) for the period.  Commission
expense was down 35% because of the lower volume of placement business.
Recruitment advertising expense was up 7%, despite a lower volume of job
postings, because of higher costs per posting.  Selling expenses represented
33.9% of consolidated net revenues, which was up 2.3 points from the prior
year.

General and administrative expenses increased $379,000 (8%) for the nine
months ended June 30, 2008.  The change was primarily due to a 24% increase
in compensation costs in the operating divisions.  Advances against
commissions increased during the period because commissions decreased.  All
other general and administrative expenses together increased 2%.  General
and administrative expenses represented 45.0% of consolidated net revenues,
which was up 12.4 points from the prior year because of the decline in
revenues.


Other
Investment income for the nine months ended June 30, 2008 was down $161,000
(72%), primarily due to a lower average rate of return on investments.

There were no credits for income taxes as a result of the pretax losses in
the 2008 periods, because there was not sufficient assurance that future tax
benefits would be realized.  There were no provisions for income taxes in
the 2007 periods, because of the availability of losses carried forward
from prior years.


Financial Condition

As of June 30, 2008, the Company had cash and cash equivalents of
$4,267,000, which was a decrease of $2,077,000 from September 30, 2007.
Net working capital at June 30, 2008 was $4,685,000, which was a decrease of
$1,710,000 from September 30, 2007, and the current ratio was 4.0 to 1.
Shareholders' equity as of June 30, 2008 was $5,534,000, which represented
73% of total assets.

                                     8





During the nine months ended June 30, 2008, the net cash used by operating
activities was $1,454,000.  The net loss for the period, adjusted for
depreciation and other non-cash charges, used $1,087,000.  A reduction of
payroll liabilities required the use of $472,000, while all other working
capital items provided $105,000.

Expenditures for the acquisition of property and equipment during the period
were $116,000.

In November 2007, the Company's board of directors declared a cash dividend
in the amount of $.10 per common share, which resulted in a total payment of
$517,000 in January 2008.

All of the Company's office facilities are leased.  Information about future
minimum lease payments is presented in the Notes to Consolidated Financial
Statements on Form 10-KSB for the fiscal year ended September 30, 2007.
Information about purchase commitments is contained in the Notes to
Consolidated Financial Statements in this quarterly report on Form 10-QSB.

The Company's primary source of liquidity is from its operating activities.
The Company's philosophy regarding the maintenance of cash balances reflects
management's views on potential future needs for liquidity.  Despite recent
losses, management believes that existing cash balances will be adequate to
finance current operations for the foreseeable future.


Off-Balance Sheet Arrangements

As of June 30, 2008, and during the nine months then ended, there were no
transactions, agreements or other contractual arrangements to which an
unconsolidated entity was a party, under which the Company (a) had any
direct or contingent obligation under a guarantee contract, derivative
instrument or variable interest in the unconsolidated entity, or (b) had a
retained or contingent interest in assets transferred to the unconsolidated
entity.


Forward-Looking Statements

As a matter of policy, the Company does not provide forecasts of future
financial performance.  However, the Company and its representatives may
from time to time make written or verbal forward-looking statements,
including statements contained in press announcements, reports to
shareholders and filings with the Securities and Exchange Commission.  All
statements which address expectations about future operating performance
and cash flows, future events and business developments, and future economic
conditions are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995.  These statements are based on
management's then-current expectations and assumptions.  Actual outcomes
could differ significantly.  The Company and its representatives do not
assume any obligation to provide updated information.

Some of the factors that could affect the Company's future performance
include, but are not limited to, general business conditions, the demand
for the Company's services, competitive market pressures, the ability of the
Company to attract and retain qualified personnel for regular full-time
placement and contract assignments, the possibility of incurring liability
for the Company's business activities, including the activities of its
contract employees and events affecting its contract employees on client
premises, and the ability to attract and retain qualified corporate and
branch management.

                                     9
Item 3, Controls and Procedures.

As of June 30, 2008, the Company's management evaluated, with the
participation of its principal executive officer and its principal financial
officer, the effectiveness of the Company's disclosure controls and
procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities
Exchange Act of 1934 (the "Exchange Act").  Based on that evaluation, the
Company's principal executive officer and its principal financial officer
concluded that the Company's disclosure controls and procedures were
adequate as of June 30, 2008 to ensure that information required to be
disclosed in reports filed or submitted by the Company under the Exchange
Act is recorded, processed, summarized and reported, within the time
periods specified in the Securities and Exchange Commission's rules
and forms.

There was no change in the Company's internal control over financial
reporting that occurred during the Company's most recent fiscal quarter
that has materially affected, or is reasonably likely to materially
affect, the Company's internal control over financial reporting.



                    PART II - OTHER INFORMATION


Item 6, Exhibits.

The following exhibits are filed as a part of Part I of this report:

No.    Description of Exhibit

31.01  Certification of the principal executive officer required by Rule
       13a-14(a) or Rule 15d-14(a) of the Exchange Act.

31.02  Certification of the principal financial officer required by Rule
       13a-14(a) or Rule 15d-14(a) of the Exchange Act.

32.01  Certifications required by Rule 13a-14(a) or Rule 15d-14(a) of the
       Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United
       States Code.


                                     10


                               SIGNATURES


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


                                     GENERAL EMPLOYMENT ENTERPRISES, INC.
                                                 (Registrant)


Date:  August 5, 2008                By:  /s/ Kent M. Yauch
                                     Kent M. Yauch
                                     Vice President, Chief Financial Officer
                                     and Treasurer (Principal financial and
                                     accounting officer and duly authorized
                                     officer)

                                 11