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| x | 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 | x      |   |

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|                                                                                           |   | March 31    |    |   | September 30 |   |
|------------------------------------------------------------------------------------------------|--------|-------------|---------|--------|--------------|--------|
|                                                                                           |   | 2010        |    |   | 2009         |   |
| (In Thousands)                                                                                 |   | (Unaudited) |    |   |         |   |
|                                                                                           |   |        |    |   |         |   |
| ASSETS                                                                                         |   |        |    |   |         |   |
| Current assets:                                                                                |   |        |    |   |         |   |
| Cash and cash equivalents                                                                      |   | $           | 1,433   |   |         | $      | 2,810 |   |
| Accounts receivable, less allowances (March 2010 - $115; September 2009 - $76)                 |   |        | 864     |   |         |   | 1,038 |   |
| Other current assets                                                                           |   |        | 283     |   |         |   | 249 |   |
|                                                                                           |   |        |    |   |         |   |   |   |
| Total current assets                                                                           |   |        | 2,580   |   |         |   | 4,097 |   |
| Property and equipment, net                                                                    |   |        | 470     |   |         |   | 570 |   |
|                                                                                           |   |        |    |   |         |   |   |   |
| Total assets                                                                                   |   | $           | 3,050   |   |         | $      | 4,667 |   |
|                                                                                           |   |        |    |   |         |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                     |   |        |    |   |         |   |   |   |
| Current liabilities:                                                                           |   |        |    |   |         |   |   |   |
| Accounts payable                                                                               |   | $           | 211     |   |         | $      | 348 |   |
| Accrued compensation                                                                           |   |        | 540     |   |         |   | 666 |   |
| Other current liabilities                                                                      |   |        | 428     |   |         |   | 474 |   |
|                                                                                           |   |        |    |   |         |   |   |   |
| Total current liabilities                                                                      |   |        | 1,179   |   |         |   | 1,488 |   |
|                                                                                           |   |        |    |   |         |   |   |   |
| Long-term obligations                                                                          |   |        | 504     |   |         |   | 575 |   |
|                                                                                           |   |        |    |   |         |   |   |   |
| Shareholders’ equity:                                                                    |   |        |    |   |         |   |   |   |
| Preferred stock; authorized - 100 shares; issued and outstanding - none                        |   |        | — |   |         |   | — |   |
| Common stock, no-par value; authorized - 20,000 shares; issued and outstanding - 13,380 shares |   |        | 6,795   |   |         |   | 6,743 |   |
| Accumulated deficit                                                                            |   |        | (5,428  | )      |         |   | (4,139 | ) |
|                                                                                           |   |        |    |   |         |   |   |   |
| Total shareholders’ equity                                                               |   |        | 1,367   |   |         |   | 2,604 |   |
|                                                                                           |   |        |    |   |         |   |   |   |
| Total liabilities and shareholders’ equity                                               |   | $           | 3,050   |   |         | $      | 4,667 |   |

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|                                         |   | Three Months Ended March 31 |   |   | Six Months Ended March 31 |   |
|----------------------------------------------|--------|----------------------------------|--------|--------|--------------------------------|--------|
| (In Thousands, Except Per Share Amounts)     |   | 2010                             |   |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
|                                         |   |                             |   |   |                           |   |   |   |   |   |   |   |
| Net revenues:                                |   |                             |   |   |                           |   |   |   |   |   |   |   |
| Contract services                            |   | $                                | 1,456  |   |                           | $      | 1,398 |   |   | $ | 2,858 |   |   | $ | 2,943 |   |
| Placement services                           |   |                             | 572    |   |                           |   | 1,074 |   |   |   | 1,142 |   |   |   | 2,416 |   |
|                                         |   |                             |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net revenues                                 |   |                             | 2,028  |   |                           |   | 2,472 |   |   |   | 4,000 |   |   |   | 5,359 |   |
| Cost of contract services                    |   |                             | 1,059  |   |                           |   | 1,017 |   |   |   | 2,055 |   |   |   | 2,053 |   |
| Selling, general and administrative expenses |   |                             | 1,660  |   |                           |   | 2,530 |   |   |   | 3,207 |   |   |   | 5,086 |   |
|                                         |   |                             |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                         |   |                             | (691   | )      |                           |   | (1,075 | ) |   |   | (1,262 | ) |   |   | (1,780 | ) |
| Other expense, net                           |   |                             | (9     | )      |                           |   | (13 | ) |   |   | (27 | ) |   |   | (84 | ) |
|                                         |   |                             |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                     |   | $                                | (700   | )      |                           | $      | (1,088 | ) |   | $ | (1,289 | ) |   | $ | (1,864 | ) |
|                                         |   |                             |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Average number of shares - basic and diluted |   |                             | 13,380 |   |                           |   | 5,165 |   |   |   | 13,380 |   |   |   | 5,165 |   |
|                                         |   |                             |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per share - basic and diluted       |   | $                                | (.05   | )      |                           | $      | (.21 | ) |   | $ | (.10 | ) |   | $ | (.36 | ) |

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|                                                |   | Six Months Ended March 31 |    |
|-----------------------------------------------------|--------|--------------------------------|---------|
| (In Thousands)                                      |   | 2010                           |    |   | 2009 |   |
|                                                |   |                           |    |   |   |   |
| Cash Flows From Operating Activities:               |   |                           |    |   |   |   |
| Net loss                                            |   | $                              | (1,289  | ) |   | $ | (1,864 | ) |
| Depreciation and other noncurrent items             |   |                           | 81      |   |   |   | 148 |   |
| Changes in current assets and current liabilities - |   |                           |    |   |   |   |   |   |
| Accounts receivable                                 |   |                           | 174     |   |   |   | 584 |   |
| Accounts payable                                    |   |                           | (137    | ) |   |   | 113 |   |
| Accrued compensation                                |   |                           | (126    | ) |   |   | (157 | ) |
| Other current items, net                            |   |                           | (80     | ) |   |   | (331 | ) |
|                                                |   |                           |    |   |   |   |   |   |
| Net cash used in operating activities               |   |                           | (1,377  | ) |   |   | (1,507 | ) |
|                                                |   |                           |    |   |   |   |   |   |
| Cash Flows From Financing Activities:               |   |                           |    |   |   |   |   |   |
| Deferred stock issuance costs                       |   |                           | — |   |   |   | (194 | ) |
|                                                |   |                           |    |   |   |   |   |   |
| Net cash used in financing activities               |   |                           | — |   |   |   | (194 | ) |
|                                                |   |                           |    |   |   |   |   |   |
| Decrease in cash and cash equivalents               |   |                           | (1,377  | ) |   |   | (1,701 | ) |
| Cash and cash equivalents at beginning of period    |   |                           | 2,810   |   |   |   | 4,165 |   |
|                                                |   |                           |    |   |   |   |   |   |
| Cash and cash equivalents at end of period          |   | $                              | 1,433   |   |   | $ | 2,464 |   |

----

|                                                      |   | Six Months Ended March 31 |   |
|-----------------------------------------------------------|--------|--------------------------------|--------|
| (In Thousands)                                            |   | 2010                           |   |   | 2009 |   |
|                                                      |   |                           |   |   |   |   |
| Common shares outstanding:                                |   |                           |   |   |   |   |
| Number at beginning of period                             |   |                           | 13,380 |   |   |   | 5,165 |   |
|                                                      |   |                           |   |   |   |   |   |   |
| Number at end of period                                   |   |                           | 13,380 |   |   |   | 5,165 |   |
|                                                      |   |                           |   |   |   |   |   |   |
| Common stock:                                             |   |                           |   |   |   |   |   |   |
| Balance at beginning of period                            |   | $                              | 6,743  |   |   | $ | 4,987 |   |
| Stock compensation expense                                |   |                           | 6      |   |   |   | 28 |   |
| Administrative compensation paid by principal stockholder |   |                           | 46     |   |   |   | — |   |
|                                                      |   |                           |   |   |   |   |   |   |
| Balance at end of period                                  |   | $                              | 6,795  |   |   | $ | 5,015 |   |
|                                                      |   |                           |   |   |   |   |   |   |
| Retained earnings (accumulated deficit):                  |   |                           |   |   |   |   |   |   |
| Balance at beginning of period                            |   | $                              | (4,139 | ) |   | $ | 89 |   |
| Net loss                                                  |   |                           | (1,289 | ) |   |   | (1,864 | ) |
|                                                      |   |                           |   |   |   |   |   |   |
| Balance at end of period                                  |   | $                              | (5,428 | ) |   | $ | (1,775 | ) |

----

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|                |   | Three MonthsEnded March 31 |    |   | Six MonthsEnded March 31 |   |
|---------------------|--------|----------------------------|---------|--------|--------------------------|--------|
|                |   |                       |    |   |                     |   |   |   |   |   |   |   |
| (In Thousands)      |   | 2010                       |    |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                |   |                       |    |   |                     |   |   |   |   |   |   |   |
| Interest expense    |   | $                          | (9      | )      |                     | $      | — |   |   | $ | (19 | ) |   | $ | — |   |
| Interest income     |   |                       | — |   |                     |   | 6 |   |   |   | 3 |   |   |   | 28 |   |
| Loss on investments |   |                       | — |   |                     |   | (19 | ) |   |   | (11 | ) |   |   | (112 | ) |
|                |   |                       |    |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Other expense, net  |   | $                          | (9      | )      |                     | $      | (13 | ) |   | $ | (27 | ) |   | $ | (84 | ) |

|                            |   | March 31 |    |   | September 30 |   |
|---------------------------------|--------|----------|---------|--------|--------------|--------|
| (In Thousands)                  |   | 2010     |    |   | 2009         |   |
|                            |   |     |    |   |         |   |
| Cash                            |   | $        | 1,433   |   |         | $      | 510 |   |
| Certificate of deposit          |   |     | — |   |         |   | 2,300 |   |
|                            |   |     |    |   |         |   |   |   |
| Total cash and cash equivalents |   | $        | 1,433   |   |         | $      | 2,810 |   |

| (In Thousands)                            |   | 2010   |   |   | 2009   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                      |   |   |   |   |   |   |
| Property and equipment, at cost           |   | $      | 3,464  |   |   | $      | 3,466 |   |
| Accumulated depreciation and amortization |   |   | (2,994 | )      |   |   | (2,896 | ) |
|                                      |   |   |   |   |   |   |   |   |
| Property and equipment, net               |   | $      | 470    |   |   | $      | 570 |   |

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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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| Nominees                  |       | Votes For  |   | Votes Withheld |
|---------------------------|------------|------------|--------|----------------|
| Dennis W. Baker           |       | 11,205,171 |   | 184,941        |
| Herbert F. Imhoff, Jr.    |       | 11,236,081 |   | 154,031        |
| Stephen B. Pence          |       | 11,268,468 |   | 121,644        |
| Charles W, B. Wardell III | 11,306,879 |       | 83,233 |
| Thomas C. Williams        |       | 11,299,379 |   | 90,733         |
| Salvatore J. Zizza        |       | 11,269,418 |   | 120,694        |

| 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:  May 11, 2010 | By: /s/ Salvatore J. Zizza                                                                                                                                                                                                 |
|                          | Salvatore J. Zizza                                                                                                                                                                                                         |
|                          | Chief Executive Officer (Principal executive officer and duly authorized officer)                                                                                                                                          |

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