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 December 31, 2005

  [ ]  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 is not required to file reports pursuant to Section 13
or 15(d) of the Exchange Act.  [ ]

Note - Checking the box above will not relieve any registrant required to file
reports pursuant to Section 13 or 15(d) of the Exchange Act from their
obligations under those Sections.

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities 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
December 31, 2005 was 5,148,265.

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






                            PART I - FINANCIAL INFORMATION

Item 1, Financial Statements.

GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEET
                                                 December 31     September 30
                                                        2005             2005
(In Thousands)                                    (Unaudited)

ASSETS
Current assets:
Cash and cash equivalents                             $4,814           $5,236
Accounts receivable, less allowances
   (Dec. 2005--$291; Sept. 2005--$270)                 1,791            2,028
Other current assets                                     493              468

Total current assets                                   7,098            7,732
Property and equipment, net                              613              632

Total assets                                          $7,711           $8,364


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accrued compensation                                  $1,175           $1,834
Other current liabilities                                558              680

Total current liabilities                              1,733            2,514

Shareholders' equity:
Preferred stock, authorized -- 100 shares;
   issued and outstanding -- none                         --               --
Common stock, no-par value; authorized --
   20,000 shares; issued and outstanding --
   5,148 shares                                        4,839            4,839
Retained earnings                                      1,139            1,011

Total shareholders' equity                             5,978            5,850

Total liabilities and shareholders' equity            $7,711           $8,364

See notes to consolidated financial statements.


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GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)

                                                                 Three Months
                                                            Ended December 31
(In Thousands, Except Per Share)                               2005      2004

Net revenues:
Contract services                                            $2,638    $2,959
Placement services                                            2,075     1,923

Net revenues                                                  4,713     4,882

Operating expenses:
Cost of contract services                                     1,856     2,083
Selling                                                       1,270     1,154
General and administrative                                    1,502     1,546

Total operating expenses                                      4,628     4,783

Income from operations                                           85        99
Investment income                                                43        20

Net income                                                   $  128    $  119

Average number of shares:
Basic                                                         5,148     5,137
Diluted                                                       5,369     5,399

Net income per share - basic and diluted                     $  .02    $  .02

See notes to consolidated financial statements.


                                       3


GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)

                                                                 Three Months
                                                            Ended December 31
(In Thousands)                                                 2005      2004

Operating activities:
Net income                                                   $  128    $  119
Depreciation and other noncurrent items                          43        69
Accounts receivable                                             237       (73)
Accrued compensation and payroll taxes                         (659)     (113)
Other current items, net                                       (147)     (220)

Net cash used by operating activities                          (398)     (218)

Investing activities:
Acquisition of property and equipment                           (24)       --

Financing activities:
Exercises of stock options                                       --         5

Decrease in cash and cash equivalents                          (422)     (213)
Cash and cash equivalents at beginning of period              5,236     4,437

Cash and cash equivalents at end of period                   $4,814    $4,224

See notes to consolidated financial statements.


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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)


Basis of Presentation

The accompanying unaudited 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, 2005.


Income Taxes

There was no provision for income taxes in either year, because
of the availability of operating losses carried forward from
prior years.


Commitments

As of December 31, 2005, the Company had approximately $800,000
of commitments to purchase recruitment advertising through
December 2007.



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 December 31, 2005, the Company operated 18 offices located
in 10 states.

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 4.9% in December 2005 and 5.4% in
December 2004.  The change indicates a trend toward fuller
employment.

During the three months ended December 31, 2005, the Company
experienced a stronger demand for its placement services, but
weaker demand for its contract services, compared to the same
period last year.  These conditions led to an increase in the
number of placements, while billable contract hours decreased.
However, during the period, increased emphasis on higher-paid
contract positions resulted in a higher average billing rate for
contract services.

Consolidated net revenues for the three months ended December 31,
2005 were down 3% compared with the prior year.  Contract service
revenues were down 11%, while placement service revenues were up
8%.  As a result of the change in the mix, placement service
revenues increased to 44% of consolidated revenues from 39% last
year. Consolidated net income was $128,000 this year, which was
slightly more than last year.


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The Company had a net cash outflow of $422,000 for the three-
month period, due to working capital requirements, and the
balance of cash and cash equivalents was $4,814,000 as of
December 31, 2005.


Results of Operations

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


                                                                 Three Months
                                                            Ended December 31

                                                               2005      2004
Net revenues:
Contract services                                              56.0%     60.6%
Placement services                                             44.0      39.4

Net revenues                                                  100.0     100.0

Operating expenses:
Cost of contract services                                      39.4      42.7
Selling                                                        26.9      23.6
General and administrative                                     31.9      31.7

Total operating expenses                                       98.2      98.0

Income from operations                                          1.8%      2.0%


Net Revenues
Consolidated net revenues for the three months ended December 31,
2005 were down $169,000 (3%) from the prior year.  Contract
service revenues decreased $321,000 (11%) during the period,
while placement service revenues increased $152,000 (8%).

The decrease in contract service revenues was due to a 25%
decrease in the number of billable hours, which was partially
offset by a 19% increase in the average hourly billing rate.
Placement service revenues were up for the period because of a
10% increase in the number of placements.

The Company's past revenues and revenue patterns are not
necessarily indicative of the future.  While it is difficult to
accurately predict future hiring patterns or the demand for
staffing services, management believes the Company is well
positioned for growth of its operations.  Existing branch offices
have the capacity to accommodate additional consulting staff and
a higher volume of business.

Operating Expenses
Total operating expenses for the three months ended December 31,
2005 were down $155,000 (3%) compared with the prior year.

The cost of contract services was down $227,000 (11%), as a
result of the lower volume of contract business.  The gross
profit margin on contract business was 29.6% for the three months
ended December 31, 2005, which was the same as the prior year.
There are no direct costs associated with placement service
revenues.

Selling expenses increased $116,000 (10%) for the year, due to
higher commission expense resulting from the higher placement
service revenues.  Selling expenses represented 26.9% of
consolidated net revenues, which was up 3.3 points from the prior
year because of the change in revenue mix.


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General and administrative expenses decreased $44,000 (3%) for
the three months ended December 31, 2005. They represented 31.9%
of consolidated revenues, which was about the same as the prior
year.

There was no provision for income taxes in either year, because
of the availability of operating losses carried forward from
prior years.


Financial Condition

As of December 31, 2005, the Company had cash and cash
equivalents of $4,814,000, which was a decrease of $422,000 from
September 30, 2005.  Net working capital at December 31, 2005 was
$5,365,000, which was an increase of $147,000 from September 30,
2005, and the current ratio was 4.1 to 1.  The Company had no
long-term debt.  Shareholders' equity as of December 31, 2005 was
$5,978,000, which represented 78% of total assets.

During the three months ended December 31, 2005, the net cash
used by operating activities was $398,000.  Net income for the
period, together with depreciation and other non-cash charges,
provided $171,000.  A seasonal reduction of payroll liabilities
required the use of $659,000, while all other working capital
items provided $90,000.

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


Off-Balance Sheet Arrangements

As of December 31, 2005, and during the three 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, and the ability to attract and retain
qualified corporate and branch management.


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Item 3, Controls and Procedures.

As of December 31, 2005, 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 December 31, 2005 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.


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                                   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:  February 6, 2006              By:  /s/ Kent M. Yauch
                                     Kent M. Yauch
                                     Vice President, Chief Financial Officer
                                     and Treasurer (Principal financial and
                                     accounting officer and duly authorized
                                     officer)


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