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 June 30, 1998
                                
                               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, Suite 2100, 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 __

     As of July 31, 1998, there were 4,021,859 shares of common
stock outstanding.



                 PART I.  FINANCIAL INFORMATION

                                
GENERAL EMPLOYMENT ENTERPRISES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
                                            June 30 September 30
(In Thousands)                                 1998         1997
ASSETS
Current assets:
Cash and short-term investments             $ 9,395      $ 7,747
Accounts receivable, less allowances
  (Jun. 1998 --$539; Sept. 1997--$466)        4,018        3,412
Total current assets                         13,413       11,159

Property and equipment:
Furniture, fixtures and equipment             3,062        2,911
Accumulated depreciation                    (2,361)      (2,325)
Net property and equipment                      701          586

Other assets                                    713          578

Total assets                                $14,827      $12,323


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accrued compensation and payroll taxes      $ 4,408      $ 3,939
Other current liabilities                       461          802
Total current liabilities                     4,869        4,741

Long-term obligations                           454          433

Shareholders' equity:
Common stock, no-par value; authorized --
  20,000 shares; issued and outstanding --
  4,022 shares in June 1998 and
  3,987 shares in September 1997                 40           40
Capital in excess of stated value of shares   4,581        4,280
Retained earnings                             4,883        2,829
Total shareholders' equity                    9,504        7,149

Total liabilities and shareholders' equity  $14,827      $12,323
See notes to condensed consolidated financial statements.



GENERAL EMPLOYMENT ENTERPRISES, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
                                  Three Months       Nine Months
                                 Ended June 30     Ended June 30
(In Thousands, Except Per Share)  1998    1997     1998     1997

Net revenues:
Placement services              $6,228  $5,259  $18,924  $14,652
Contract services                2,908   2,213    8,531    6,050
  Net revenues                   9,136   7,472   27,455   20,702

Cost of services                 6,906   5,496   20,397   14,980
General and administrative
 expenses                        1,182   1,012    3,618    3,054

Income from operations           1,048     964    3,440    2,668
Interest income                    112      70      310      195

Income before income taxes       1,160   1,034    3,750    2,863
Provision for income taxes         460     415    1,495    1,145

Net income                      $  700  $  619  $ 2,255  $ 1,718

Net income per common share     $  .17  $  .16  $   .56  $   .43
Diluted net income per share    $  .17  $  .15  $   .54  $   .43

Average number of shares used in
 per share calculations:
  Net income per common share    4,022   3,977    4,015    3,977
  Diluted net income per share   4,175   4,029    4,202    4,018
See notes to condensed consolidated financial statements.



GENERAL EMPLOYMENT ENTERPRISES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
                                                   Nine Months
                                                  Ended June 30
(In Thousands)                                     1998    1997

Operating activities:
Net income                                       $2,255  $1,718
Noncash costs and expenses                          197     155
Changes in current assets and current liabilities -
  Accounts receivable                             (606)   (727)
  Accrued compensation and payroll taxes            469    (93)
  Other current liabilities                       (341)   (250)

Net cash provided by operating activities         1,974     803

Investing activities:
Short-term investments                          (2,401) (3,080)
Other investing activities                        (426)   (342)

Net cash used by investing activities           (2,827) (3,422)

Financing activities:
Exercises of stock options                          301      --
Cash dividend declared                            (201)   (159)

Net cash provided (used) by financing activities    100   (159)

Decrease in cash and cash equivalents             (753) (2,778)
Cash and cash equivalents at beginning of period  3,188   5,564

Cash and cash equivalents at end of period        2,435   2,786
Short-term investments at end of period           6,960   3,580

Cash and short-term investments                  $9,395  $6,366
See notes to condensed consolidated financial statements.



NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Interim Financial Statements

The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with generally
accepted accounting principles for interim financial information
and with the instructions to Form 10-QSB.  Accordingly, they do
not include all of the information and footnotes required by
generally accepted accounting principles for complete financial
statements.  In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary
for a fair presentation have been included.  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, 1997.


Net Income Per Share

Beginning in calendar year 1998, the Company adopted Statement of
Financial Accounting Standards No. 128, "Earnings Per Share."
Under the new pronouncement, companies are required to report
basic and diluted earnings per share.  The Company's net income
per common share is based on the average number of common shares
outstanding.  Diluted net income per share is based on the
average number of common shares and dilutive stock option shares
outstanding.  All per share amounts have been restated to conform
with the new pronouncement.


Common Stock

The Company declared a 3-for-2 stock split effective on October
31, 1997.  All per share amounts have been restated.

The Company declared special cash dividends of $.05 per common
share on November 17, 1997 and $ .04 per share on November 18,
1996.



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


The Company provides placement and contract staffing services for
business and industry, specializing in the placement of
professional information technology, engineering and accounting
personnel.  For the year ended September 30, 1997, the Company
derived 70% of its revenues from placement services and 30% of
its revenues from contract services.  As of June 30, 1998, the
Company operated 43 offices located in major metropolitan and
business centers in 15 states.

The demand for the Company's services has been strong in recent
years.  For the three fiscal years ended September 30, 1997, the
Company's average annual rate of revenue growth was 27%.
Management believes that this growth is attributable to three
factors.  First, the Company specializes in the fast-growing
information technology field.  Second, the Company's services
fill a growing need in the workplace for contract staffing.  And
third, the Company offers its clients the alternative of either
temporary or full-time staffing assistance.

The Company's business is affected by the U.S. economy and
national hiring levels.  The last two years were characterized by
relatively low, but stable, economic growth and historically low
levels of unemployment.  These economic conditions have
contributed to the strong demand for the Company's services.

To accommodate the demand for its services, the Company opened
six new branch offices during fiscal 1996, nine new branch
offices during fiscal 1997 and an additional five new branch
offices during the first nine months of fiscal 1998.  Generally,
the Company has entered into short-term leases for new locations,
initially using shared office facilities whenever possible; this
approach minimizes costs during the start-up period.


Third Quarter Results of Operations

For the three months ended June 30, 1998, consolidated revenues
were $9,136,000, up $1,664,000 (22%) from last year's $7,472,000.
Placement service revenues increased $969,000 (18%), primarily
due to a 13% higher average placement fee.  Contract service
revenues increased $695,000 (31%), due to a 17% increase in
billable hours and a 10% increase in the average hourly billing
rate.

The consolidated cost of services for the three months ended June
30, 1998 was $6,906,000, up $1,410,000 (26%) from $5,496,000 last
year.  Compensation expense for branch office personnel increased
23% due to the combined effects of higher commissions associated
with the higher placement service revenues, together with higher
salaries and wages associated with the increased number of branch
offices.  The payroll for contract service workers increased 30%
as a result of the higher volume of contract business this year.
Payroll taxes and employee benefits were 22% higher for the
quarter, due to higher payrolls.  Occupancy costs increased 29%
and recruitment advertising expenses increased 24% as a result of
opening new branch offices.  The cost of services as a percent of
service revenues increased 2.0 points, from 73.6% last year to
75.6% this year.

General and administrative expenses for the three months ended
June 30, 1998 were $1,182,000, which was a $170,000 (17%)
increase from $1,012,000 last year.  Administrative compensation
increased 24% and all other general and administrative expenses
increased 8% for the quarter.

Income from operations was $1,048,000 for the three months ended
June 30, 1998, which was an $84,000 (9%) increase from $964,000
last year.  The operating profit margin was 11.5% this year,
compared with 12.9% last year.

Interest income this year was $112,000, compared with $70,000
last year.  The $42,000 (60%) increase was due to higher
investable funds.

Pretax income was $1,160,000 for the 1998 period, a $126,000
(12%) increase from $1,034,000 last year.  The effective income
tax rate was 40% in both periods.

After taxes, net income was $700,000 for the three months ended
June 30, 1998, an $81,000 (13%) improvement compared with net
income of $619,000 for the same period last year.  Diluted net
income per share was $ .17 this year, compared with $ .15 last
year.


Nine Months Results of Operations

For the nine months ended June 30, 1998, consolidated revenues
were $27,455,000, up $6,753,000 (33%) from last year's
$20,702,000.  Placement service revenues increased $4,272,000
(29%), on 7% more placements and a 20% higher average placement
fee.  Contract service revenues increased $2,481,000 (41%), due
to a 34% increase in billable hours and a 4% increase in the
average hourly billing rate.

The consolidated cost of services for the nine months ended June
30, 1998 was $20,397,000, up $5,417,000 (36%) from $14,980,000
last year.  Compensation expense for branch office personnel
increased 37% due to the combined effects of higher commissions
associated with the higher placement service revenues, together
with higher salaries and wages associated with the increased
number of branch offices.  The payroll for contract service
workers increased 39% as a result of the higher volume of
contract business this year.  Payroll taxes and employee benefits
were 29% higher for the nine month period, due to higher
payrolls.  Occupancy costs increased 27% and recruitment
advertising expenses increased 27% as a result of opening new
branch offices.  The cost of services as a percent of service
revenues increased 1.9 points, from 72.4% last year to 74.3% this
year.

General and administrative expenses for the nine months ended
June 30, 1998 were $3,618,000, which was a $564,000 (18%)
increase from $3,054,000 last year. Administrative compensation
increased 23% and all other general and administrative expenses
increased 11% for the period.

Income from operations was $3,440,000 for the nine months ended
June 30, 1998, which was a $772,000 (29%) increase from
$2,668,000 last year.  The operating profit margin was 12.5% this
year, compared with 12.9% last year.

Interest income this year was $310,000, compared with $195,000
last year.  The $115,000 (59%) increase was due to higher
investable funds.

Pretax income was $3,750,000 for the 1998 period, an $887,000
(31%) increase from $2,863,000 last year.  The effective income
tax rate was 40% in both periods.

After taxes, net income was $2,255,000 for the nine months ended
June 30, 1998, a $537,000 (31%) improvement compared with net
income of $1,718,000 for the same period last year.  Diluted net
income per share was $.54 this year, compared with $ .43 last
year.


Financial Condition

During the nine months ended June 30, 1998, the Company's cash
and short-term investments increased by $1,648,000 to a balance
of $9,395,000.  Net income for the period provided $2,255,000.
However, $606,000 was used for an increase in accounts
receivable.  Other operating items provided $325,000, so that the
net cash provided by operating activities was $1,974,000.  During
the period, $426,000 was used by other investing activities,
$201,000 was used by the declaration of a cash dividend, and
$301,000 was provided by exercises of stock options.

The Company's net working capital was $8,544,000 as of June 30,
1998, compared with $6,418,000 at September 30, 1997, and
shareholders' equity was $9,504,000 at June 30, 1998, compared
with $7,149,000 last September.

As of June 30, 1998, 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, 1997.

As of June 30, the Company had no debt outstanding, and it had a
$1,000,000 line of credit available for working capital purposes.


Forward Looking Information

The Company's business, particularly placement services, can be
volatile and may fluctuate from quarter to quarter.  Operating
results for interim periods are not necessarily indicative of
results that may be expected for the entire year.

Management is optimistic about the Company's growth prospects for
the future.  The Company has announced plans to open a total of
12 new branch offices during fiscal 1998 and an additional 16
branch offices during fiscal 1999.  Management believes that
existing financial resources are adequate to meet these needs.

This forward looking information is based on management's current
expectations and is subject to risks and uncertainties.  Actual
results could differ significantly.  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, and the ability
of the Company to attract and retain qualified personnel for
regular full-time placement and contract project assignments.
The Company's internal expansion growth plan for opening new
branch offices is contingent upon the Company's ability to
identify, hire and train candidates for new branch management
assignments.



                   PART II - OTHER INFORMATION


Item 6  Exhibits and Reports on Form 8-K


The following exhibit is filed as part of this report:

No.  Description of Exhibit

27   Financial Data Schedule for the nine months ended June 30, 1998.


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:  August 5, 1998         By:   /s/  Herbert F. Imhoff
                              Herbert F. Imhoff
                              Chairman of the Board
                              and Chief Executive Officer


Date:  August 5, 1998         By:   /s/  Kent M. Yauch
                              Kent M. Yauch
                              Chief Financial Officer
                              and Treasurer