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| T | Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|-----------------------------------------------------------------------------------|

| o | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|------------------------------------------------------------------------------------------|

| GENERAL EMPLOYMENT ENTERPRISES, INC                    |
|--------------------------------------------------------|
| (Exact name of registrant as specified in its charter) |

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

| One Tower Lane, Suite 2200, Oakbrook Terrace, Illinois 60181 |
|--------------------------------------------------------------|
| (Address of principal executive offices)                     |
|                                                         |
| (630) 954-0400                                               |
| (Registrant’s telephone number, including area code)   |

| Large accelerated filer | o      | Accelerated filer         | o      |
|-------------------------|--------|---------------------------|--------|
|                    |   |                      |   |
| Non-accelerated filer   | o      | Smaller reporting company | T      |

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|                                                                                                                                                                                   |   | June 30     |    |   | September 30 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|-------------------|--------|
|                                                                                                                                                                                   |   | 2010        |    |   | 2009              |   |
| (In Thousands)                                                                                                                                                                         |   | (Unaudited) |    |   |              |   |
|                                                                                                                                                                                   |   |        |    |   |              |   |
| ASSETS                                                                                                                                                                                 |   |        |    |   |              |   |
| Current assets:                                                                                                                                                                        |   |        |    |   |              |   |
| Cash and cash equivalents                                                                                                                                                              |   | $           | 555     |   |              | $      | 2,810 |   |
| Accounts receivable, less allowances (June 2010 - $168; September 2009 - $76)                                                                                                          |   |        | 2,130   |   |              |   | 1,038 |   |
| Other current assets                                                                                                                                                                   |   |        | 281     |   |              |   | 249 |   |
|                                                                                                                                                                                   |   |        |    |   |              |   |   |   |
| Total current assets                                                                                                                                                                   |   |        | 2,966   |   |              |   | 4,097 |   |
| Property and equipment, net                                                                                                                                                            |   |        | 423     |   |              |   | 570 |   |
| Other Assets – Intangibles, less amortization ($16)                                                                                                                              |   |        | 469     |   |              |   | — |   |
|                                                                                                                                                                                   |   |        |    |   |              |   |   |   |
| Total assets                                                                                                                                                                           |   | $           | 3,858   |   |              | $      | 4,667 |   |
|                                                                                                                                                                                   |   |        |    |   |              |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                             |   |        |    |   |              |   |   |   |
| Current liabilities:                                                                                                                                                                   |   |        |    |   |              |   |   |   |
| Accounts payable                                                                                                                                                                       |   | $           | 76      |   |              | $      | 348 |   |
| Accrued compensation                                                                                                                                                                   |   |        | 1,056   |   |              |   | 666 |   |
| Other current liabilities                                                                                                                                                              |   |        | 537     |   |              |   | 474 |   |
|                                                                                                                                                                                   |   |        |    |   |              |   |   |   |
| Total current liabilities                                                                                                                                                              |   |        | 1,669   |   |              |   | 1,488 |   |
|                                                                                                                                                                                   |   |        |    |   |              |   |   |   |
| Long-term obligations                                                                                                                                                                  |   |        | 468     |   |              |   | 575 |   |
|                                                                                                                                                                                   |   |        |    |   |              |   |   |   |
| Shareholders’ equity:                                                                                                                                                            |   |        |    |   |              |   |   |   |
| Preferred stock; authorized - 100 shares; issued and outstanding - none                                                                                                                |   |        | — |   |              |   | — |   |
| Common stock, no-par value; authorized - 20,000 shares; issued and outstanding – 14,856 and 13,380 shares at June 30, 2010 and   September 30, 2009, respectively |   |        | 7,286   |   |              |   | 6,743 |   |
| Accumulated deficit                                                                                                                                                                    |   |        | (5,565  | )      |              |   | (4,139 | ) |
|                                                                                                                                                                                   |   |        |    |   |              |   |   |   |
| Total shareholders’ equity                                                                                                                                                       |   |        | 1,721   |   |              |   | 2,604 |   |
|                                                                                                                                                                                   |   |        |    |   |              |   |   |   |
| Total liabilities and shareholders’ equity                                                                                                                                       |   | $           | 3,858   |   |              | $      | 4,667 |   |

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|                                                  |   | Three MonthsEnded June |   |   | Nine MonthsEnded June 30 |   |
|-------------------------------------------------------|--------|-----------------------------|--------|--------|------------------------------------|--------|
| (In Thousands, Except Per Share Amounts)              |   | 2010                        |   |   | 2009                               |   |   | 2010 |   |   | 2009 |   |
|                                                  |   |                        |   |   |                               |   |   |   |   |   |   |   |
| Net revenues:                                         |   |                        |   |   |                               |   |   |   |   |   |   |   |
| Contract services                                     |   | $                           | 2,982  |   |                               | $      | 1,490 |   |   | $ | 5,840 |   |   | $ | 4,433 |   |
| Placement services                                    |   |                        | 854    |   |                               |   | 1,030 |   |   |   | 1,996 |   |   |   | 3,446 |   |
| Net revenues                                          |   |                        | 3,836  |   |                               |   | 2,520 |   |   |   | 7,836 |   |   |   | 7,879 |   |
|                                                  |   |                        |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Cost of contract services                             |   |                        | 2,445  |   |                               |   | 1,040 |   |   |   | 4,500 |   |   |   | 3,093 |   |
| Selling, general and administrative expenses          |   |                        | 1,519  |   |                               |   | 3,809 |   |   |   | 4,726 |   |   |   | 8,895 |   |
| Loss from operations                                  |   |                        | (128   | )      |                               |   | (2,329 | ) |   |   | (1,390 | ) |   |   | (4,109 | ) |
|                                                  |   |                        |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense), net                           |   |                        | (9     | )      |                               |   | 34 |   |   |   | (36 | ) |   |   | (50 | ) |
|                                                  |   |                        |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                              |   | $                           | (137   | )      |                               | $      | (2,295 | ) |   | $ | (1,426 | ) |   |   | (4,159 | ) |
|                                                  |   |                        |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares - basic and diluted |   |                        | 13,867 |   |                               |   | 5,165 |   |   |   | 13,542 |   |   |   | 5,165 |   |
|                                                  |   |                        |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per share - basic and diluted                |   | $                           | (.01   | )      |                               | $      | (.44 | ) |   | $ | (.11 | ) |   | $ | (.81 | ) |

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|                                                                       |   | Nine MonthsEnded June 30 |    |
|----------------------------------------------------------------------------|--------|------------------------------------|---------|
| (In Thousands)                                                             |   | 2010                               |    |   | 2009 |   |
|                                                                       |   |                               |    |   |   |   |
| Cash Flows From Operating Activities:                                      |   |                               |    |   |   |   |
| Net loss                                                                   |   |                               |    |   |   |   |
| Adjustments to reconcile net loss to net cash used in operating activities |   | $                                  | (1,426  | ) |   | $ | (4,159 | ) |
| Depreciation and other noncurrent items                                    |   |                               | 166     |   |   |   | 210 |   |
| Deferred compensation and stock compensation expense                       |   |                               | (125    | ) |   |   | 1,027 |   |
| Expenses paid by principal stockholder                                     |   |                               | 46      |   |   |   | — |   |
| Changes in current assets and current liabilities -                        |   |                               |    |   |   |   |   |   |
| Accounts receivable                                                        |   |                               | (1,092  | ) |   |   | 210 |   |
| Accounts payable                                                           |   |                               | (273    | ) |   |   | 140 |   |
| Accrued compensation                                                       |   |                               | 390     |   |   |   | 102 |   |
| Other current items, net                                                   |   |                               | 59      |   |   |   | 2 |   |
|                                                                       |   |                               |    |   |   |   |   |   |
| Net cash used in operating activities                                      |   |                               | (2,255  | ) |   |   | (2,468 | ) |
|                                                                       |   |                               |    |   |   |   |   |   |
| Cash Flows From Investing activities:                                      |   |                               |    |   |   |   |   |   |
| Acquisition of property and equipment                                      |   |                               | — |   |   |   | (48 | ) |
|                                                                       |   |                               |    |   |   |   |   |   |
| Cash Flows From Financing Activities:                                      |   |                               |    |   |   |   |   |   |
| Issuance of common stock, net of issuance costs                            |   |                               | — |   |   |   | 1,432 |   |
|                                                                       |   |                               |    |   |   |   |   |   |
| Net cash provided by financing activities                                  |   |                               | — |   |   |   | 1,432 |   |
|                                                                       |   |                               |    |   |   |   |   |   |
| Decrease in cash and cash equivalents                                      |   |                               | (2,255  | ) |   |   | (1,084 | ) |
| Cash and cash equivalents at beginning of period                           |   |                               | 2,810   |   |   |   | 4,165 |   |
|                                                                       |   |                               |    |   |   |   |   |   |
| Cash and cash equivalents at end of period                                 |   | $                                  | 555     |   |   | $ | 3,081 |   |

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|                                                      |   | Nine MonthsEnded June 30 |   |
|-----------------------------------------------------------|--------|------------------------------------|--------|
| (In Thousands)                                            |   | 2010                               |   |   | 2009 |   |
|                                                      |   |                               |   |   |   |   |
| Common shares outstanding:                                |   |                               |   |   |   |   |
| Number at beginning of period                             |   |                               | 13,380 |   |   |   | 5,165 |   |
| Issuance of common stock for acquisition                  |   |                               | 1,476  |   |   |   | 8,200 |   |
|                                                      |   |                               |   |   |   |   |   |   |
| Number at end of period                                   |   |                               | 14,856 |   |   |   | 13,365 |   |
|                                                      |   |                               |   |   |   |   |   |   |
| Common stock:                                             |   |                               |   |   |   |   |   |   |
| Balance at beginning of period                            |   | $                                  | 6,743  |   |   | $ | 4,987 |   |
| Issuance of common stock, net of issuance costs           |   |                               | 487    |   |   |   | 1,432 |   |
| Stock compensation expense                                |   |                               | 10     |   |   |   | — |   |
| Administrative compensation paid by principal stockholder |   |                               | 46     |   |   |   | 362 |   |
|                                                      |   |                               |   |   |   |   |   |   |
| Balance at end of period                                  |   | $                                  | 7,286  |   |   | $ | 6,781 |   |
|                                                      |   |                               |   |   |   |   |   |   |
| Retained earnings (accumulated deficit):                  |   |                               |   |   |   |   |   |   |
| Balance at beginning of period                            |   | $                                  | (4,139 | ) |   | $ | 89 |   |
| Net loss                                                  |   |                               | (1,426 | ) |   |   | (4,159 | ) |
|                                                      |   |                               |   |   |   |   |   |   |
| Balance at end of period                                  |   | $                                  | (5,565 | ) |   | $ | (4,070 | ) |

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| Fixed assets                                     |   | $      | 2   |   |
|--------------------------------------------------|--------|--------|-----|--------|
| Intangible assets – non-compete agreement  |   |   | 151 |   |
| Intangible assets – customer relationships |   |   | 334 |   |
| Total fair value of assets acquired              |   | $      | 487 |   |

|                             |   | Nine months ended June 30, |   |
|----------------------------------|--------|----------------------------|--------|
|                             |   | 2010                       |   |   | 2009 |   |
| Net sales                        |   | $                          | 15,626 |   |   | $ | 17,240 |   |
| Net loss                         |   | $                          | (1,419 | ) |   | $ | (4,259 | ) |
|                             |   |                       |   |   |   |   |   |   |
| Basic and diluted loss per share |   | $                          | (0.10  | ) |   | $ | (0.64 | ) |

|                       |   | Three MonthsEnded June 30 |    |   | Nine MonthsEnded June 30 |   |
|----------------------------|--------|-------------------------------------|---------|--------|------------------------------------|--------|
| (In Thousands)             |   | 2010                                |    |   | 2009                               |   |   | 2010 |   |   | 2009 |   |
|                       |   |                                |    |   |                               |   |   |   |   |   |   |   |
| Interest expense           |   | $                                   | (9      | )      |                               | $      | — |   |   | $ | (28 | ) |   | $ | — |   |
| Interest income            |   |                                | — |   |                               |   | 2 |   |   |   | 3 |   |   |   | 30 |   |
| Gain (loss) on investments |   |                                | — |   |                               |   | 32 |   |   |   | (11 | ) |   |   | (80 | ) |
|                       |   |                                |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Other income(expense), net |   | $                                   | (9      | )      |                               | $      | 34 |   |   | $ | ( 36 | ) |   | $ | (50 | ) |

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|                            |   | June 30 |    |   | September 30 |   |
|---------------------------------|--------|--------------|---------|--------|-------------------|--------|
| (In Thousands)                  |   | 2010         |    |   | 2009              |   |
|                            |   |         |    |   |              |   |
| Cash                            |   | $            | 555     |   |              | $      | 510 |   |
| Certificate of deposit          |   |         | — |   |              |   | 2,300 |   |
|                            |   |         |    |   |              |   |   |   |
| Total cash and cash equivalents |   | $            | 555     |   |              | $      | 2,810 |   |

| (In Thousands)                            |   | 2010   |   |   | 2009   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                      |   |   |   |   |   |   |
| Property and equipment, at cost           |   | $      | 3,364  |   |   | $      | 3,466 |   |
| Accumulated depreciation and amortization |   |   | (2,941 | )      |   |   | (2,896 | ) |
|                                      |   |   |   |   |   |   |   |   |
| Property and equipment, net               |   | $      | 423    |   |   | $      | 570 |   |

| (In Thousands)         |   | Cost   |   |   | AccumulatedAmortization |   |
|------------------------|--------|--------|--------|--------|-------------------------|--------|
|                   |   |   |   |   |                    |   |
| Non-Compete            |   | $      | 151    |   |                    | $      | 3 |   |
| Customer Relationships |   |   | 334    |   |                    |   | 13 |   |
|                   |   |   |   |   |                    |   |   |   |
|                   |   | $      | 485    |   |                    | $      | 16 |   |

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|   | · | Compensation in the operating divisions, which includes commissions earned by the Company’s employment consultants and branch managers on permanent and temporary placements.  It also includes salaries, wages, unrecovered advances against commissions, payroll taxes and employee benefits associated with the management and operation of the Company’s staffing offices. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Administrative compensation, which includes salaries, wages, payroll taxes and employee benefits associated with general management and the operation of the finance, legal, human resources and information technology functions. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Occupancy costs, which includes office rent, depreciation and amortization, and other office operating expenses. |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | Recruitment advertising, which includes the cost of identifying job applicants. |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | Other selling, general and administrative expenses, which includes travel, bad debt expense, fees for outside professional services and other corporate-level expenses such as business insurance and taxes. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | No. | Description of Exhibit |
|--------|-----|------------------------|

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

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

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

|   | 32.02 | Certifications of the principal financial officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act and Section 1350 of Title 18 of the United States Code.. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                             | GENERAL EMPLOYMENT ENTERPRISES, INC.(Registrant)                                  |
|----------------------------------|-----------------------------------------------------------------------------------|
|                             |                                                                              |
| Date:  August 13, 2010 | By: /s/ Salvatore J. Zizza                                         |
|                             | Salvatore J. Zizza                                                                |
|                             | Chief Executive Officer (Principal executive officer and duly authorized officer) |

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