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, 2007

  [ ]  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, 2007 was 5,153,265.

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
                                                        2007            2006
(In Thousands)                                    (Unaudited)

ASSETS
Current assets:
Cash and cash equivalents                             $6,072          $5,904
Accounts receivable, less allowances
   (June 2007--$250; Sept. 2006--$280)                 1,786           1,978
Other current assets                                     756             592

Total current assets                                   8,614           8,474
Property and equipment, net                              962             801

Total assets                                          $9,576          $9,275


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accrued compensation                                  $2,130          $1,791
Other current liabilities                                487             632

Total current liabilities                              2,617           2,423

Shareholders' equity:
Preferred stock, authorized -- 100 shares;
   issued and outstanding -- none                         --              --
Common stock, no-par value; authorized --
   20,000 shares; issued and outstanding --
   5,153 shares in June 2007 and
   5,148 shares in September 2006                      4,891           4,839
Retained earnings                                      2,068           2,013

Total shareholders' equity                             6,959           6,852

Total liabilities and shareholders' equity            $9,576          $9,275

See notes to consolidated financial statements.

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GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
                                        Three Months              Nine Months
                                       Ended June 30            Ended June 30
(In Thousands, Except Per Share)      2007      2006          2007       2006

Net revenues:
Contract services                   $1,942    $2,566       $ 6,255    $ 7,889
Placement services                   2,922     2,755         8,413      7,145

Net revenues                         4,864     5,321        14,668     15,034

Operating expenses:
Cost of contract services            1,306     1,848         4,224      5,606
Selling                              1,856     1,664         5,308      4,354
General and administrative           1,601     1,453         4,791      4,509

Total operating expenses             4,763     4,965        14,323     14,469

Income from operations                 101       356           345        565
Investment income                       83        44           225        138

Net income                          $  184    $  400       $   570    $   703

Average number of shares:
Basic                                5,151     5,148         5,149      5,148
Diluted                              5,399     5,313         5,372      5,340

Net income per share:
Basic                               $  .04    $  .08       $   .11    $   .14
Diluted                             $  .03    $  .08       $   .11    $   .13

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

See notes to consolidated financial statements.

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GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
                                                                 Nine Months
                                                               Ended June 30
(In Thousands)                                          2007            2006

Operating activities:
Net income                                            $  570          $  703
Depreciation and other noncurrent items                  220             120
Accounts receivable                                      192             (40)
Accrued compensation                                     339             (38)
Other current items, net                                (309)           (214)

Net cash provided by operating activities              1,012             531

Investing activities:
Acquisition of property and equipment                   (334)           (223)

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

Net cash used by financing activities                   (510)             --

Increase in cash and cash equivalents                    168             308
Cash and cash equivalents at beginning of period       5,904           5,236

Cash and cash equivalents at end of period            $6,072          $5,544

See notes to consolidated financial statements.

                                      4


GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY (Unaudited)
                                                                 Nine Months
                                                               Ended June 30
(In Thousands)                                            2007          2006

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

Number at end of period                                  5,153         5,148

Common stock:
Balance at beginning of period                          $4,839        $4,839
Stock option expense                                        47            --
Exercises of stock options                                   5            --

Balance at end of period                                $4,891        $4,839

Retained earnings:
Balance at beginning of period                          $2,013        $1,011
Net income                                                 570           703
Cash dividends declared                                   (515)           --

Balance at end of period                                $2,068        $1,714

See notes to consolidated financial statements.

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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 year ended September 30, 2006.


Income Taxes

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



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, 2007 the Company operated 19
offices located in 9 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 4.5% in
June 2007 and 4.6% in June 2006.  These statistics indicate a relatively full
level of employment in the United States during the last twelve months.

During the nine months ended June 30, 2007, the Company experienced stronger
demand for its placement services, compared with the same period of the prior
year.  Because of the stronger demand, and because placements have a higher
profit margin than contract services, the Company focused its marketing
efforts on the placement business during the period.  As a result, the Company
achieved increases in both the number of placements and the average placement
fee, while the number of billable contract hours declined.

During the same period, the Company experienced greater challenges in finding
well-qualified candidates for both placement and contract assignments than it
had last year.  This factor constrained revenue growth in both divisions.

Consolidated net revenues for the nine months ended June 30, 2007 decreased 2%
compared with the prior year.  Placement service revenues were up 18%, while
contract service revenues were down 21%.  As a result of the decline in
consolidated net revenues, income from operations was down 39% from the same
period last year.

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.  While it is difficult to accurately

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predict future hiring patterns or the demand for staffing services, management
believes that 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.


Results of Operations

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


                                                                 Nine Months
                                                               Ended June 30
                                                              2007      2006

Net revenues:
Contract services                                             42.6%     52.5%
Placement services                                            57.4      47.5

Net revenues                                                 100.0     100.0

Operating expenses:
Cost of contract services                                     28.8      37.3
Selling                                                       36.2      29.0
General and administrative                                    32.7      30.0

Total operating expenses                                      97.6      96.2

Income from operations                                         2.4%      3.8%


Net Revenues
Consolidated net revenues for the nine months ended June 30, 2007 were down
$366,000 (2%) from the prior year.  Placement service revenues increased
$1,268,000 (18%), while contract service revenues decreased $1,634,000 (21%).

During the first nine months of this year, the Company experienced stronger
demand for its placement services.  As a result, the number of placements grew
by 6% and the average placement fee was up 11% over the same period last year.

Because of a shift in the Company's marketing focus toward the placement
business, the contract service business declined.  The decrease in contract
service revenues reflects a 23% decrease in the number of billable hours,
which was partially offset by a 1% increase in the average hourly billing
rate.

Operating Expenses
Total operating expenses for the nine months ended June 30, 2007 were down
$146,000 (1%) compared with the prior year.

The cost of contract services was down $1,382,000 (25%) as a result of the
lower volume of contract business.  However, margins improved.  The gross
profit margin on contract business was 32.5% for the nine months ended June
30, 2007, which was 3.6 points higher than 28.9% for the prior year.  There
are no direct costs associated with placement service revenues.

Selling expenses increased $954,000 (22%) for the period.  Commission expense
was up 20% because of the higher volume of placement business.  Recruitment
advertising expense was up 35% because of a higher number of internet job

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postings needed to attract qualified candidates.  Selling expenses represented
36.2% of consolidated net revenues, which was up 7.2 points from the prior
year.

General and administrative expenses increased $282,000 (6%) for the nine
months ended June 30, 2007.  They represented 32.7% of consolidated revenues,
which was up 2.7 points from 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 June 30, 2007, the Company had cash and cash equivalents of $6,072,000,
which was an increase of $168,000 from September 30, 2006.  Net working
capital at June 30, 2007 was $5,997,000, which was a decrease of $54,000 from
September 30, 2006, and the current ratio was 3.3 to 1.  The Company had no
long-term debt.  Shareholders' equity as of June 30, 2007 was $6,959,000,
which represented 73% of total assets.

During the nine months ended June 30, 2007, the net cash provided by operating
activities was $1,012,000.  Net income for the period, together with
depreciation and other non-cash charges, provided $790,000, while working
capital items provided an additional $222,000.

Expenditures for the acquisition of property and equipment were $334,000 for
the nine months ended June 30, 2007.  The major expenditures were for computer
equipment and software purchased in connection with a program to upgrade the
Company's computer systems.  During the period the Company paid cash dividends
of $515,000.

All of the Company's office facilities are leased.  Information about future
minimum lease payments and other commitments is presented in the notes to
consolidated financial statements on Form 10-KSB for the fiscal year ended
September 30, 2006.

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.  Management
believes that funds generated by operations, together with existing cash
balances, will be adequate to finance current operations and capital
expenditures for the foreseeable future.


Off-Balance Sheet Arrangements

As of June 30, 2007, 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

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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.


Item 3, Controls and Procedures.

As of June 30, 2007, 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, 2007 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:  August 1, 2007                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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