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 March 31, 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 is not required to file reports pursuant to Section
13 or 15(d) of the Exchange Act.  [ ]

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
March 31, 2007 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
                                                    March 31    September 30
                                                        2007            2006
(In Thousands)                                    (Unaudited)

ASSETS
Current assets:
Cash and cash equivalents                             $5,539          $5,904
Accounts receivable, less allowances
   (Mar. 2007--$260; Sept. 2006--$280)                 2,103           1,978
Other current assets                                     703             592

Total current assets                                   8,345           8,474
Property and equipment, net                              928             801

Total assets                                          $9,273          $9,275


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accrued compensation                                  $2,059          $1,791
Other current liabilities                                465             632

Total current liabilities                              2,524           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 --
   5,148 shares                                        4,865           4,839
Retained earnings                                      1,884           2,013

Total shareholders' equity                             6,749           6,852

Total liabilities and shareholders' equity            $9,273          $9,275

See notes to consolidated financial statements.



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GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
                                             Three Months          Six Months
                                           Ended March 31      Ended March 31
(In Thousands, Except Per Share)           2007      2006      2007      2006

Net revenues:
Contract services                        $2,113    $2,685    $4,313    $5,323
Placement services                        2,847     2,315     5,491     4,390

Net revenues                              4,960     5,000     9,804     9,713

Operating expenses:
Cost of contract services                 1,442     1,902     2,918     3,758
Selling                                   1,848     1,420     3,452     2,690
General and administrative                1,639     1,554     3,190     3,056

Total operating expenses                  4,929     4,876     9,560     9,504

Income from operations                       31       124       244       209
Investment income                            59        51       142        94

Net income                               $   90    $  175    $  386    $  303

Average number of shares:
Basic                                     5,148     5,148     5,148     5,148
Diluted                                   5,381     5,328     5,358     5,351

Net income per share - basic and diluted $  .02    $  .03    $  .07    $  .06

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)
                                                                  Six Months
                                                              Ended March 31
(In Thousands)                                          2007            2006

Operating activities:
Net income                                            $  386          $  303
Depreciation and other noncurrent items                  139              80
Accounts receivable                                     (125)           (133)
Accrued compensation                                     268            (117)
Other current items, net                                (278)           (193)

Net cash provided (used) by operating activities         390             (60)

Investing activities:
Acquisition of property and equipment                   (240)            (33)

Financing activities:
Cash dividends paid                                     (515)             --

Decrease in cash and cash equivalents                   (365)            (93)
Cash and cash equivalents at beginning of period       5,904           5,236

Cash and cash equivalents at end of period            $5,539          $5,143

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, 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.


Shareholders' Equity

Changes in shareholders' equity for the six months ended March 31, 2007 and
2006 were as follows:

(In Thousands)                                            2007           2006

Common stock:
Balance at beginning of period                          $4,839         $4,839
Stock option expense                                        26             --

Balance at end of period                                $4,865         $4,839

Retained earnings:
Balance at beginning of period                          $2,013         $1,011
Net income                                                 386            303
Cash dividends declared                                   (515)            --

Balance at end of period                                $1,884         $1,314



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 March 31, 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

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indicator of employment conditions, the national unemployment rate was 4.4% in
March 2007 and 4.7% in March 2006.  The change indicates a trend toward fuller
employment over the last twelve months.

During the six months ended March 31, 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 placement services have a
higher profit margin than contract services, the Company focused its marketing
efforts on the placement business this year.  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.

Consolidated net revenues for the six months ended March 31, 2007 increased 1%
compared with the prior year.  Placement service revenues were up 25%, while
contract service revenues were down 19%.  Due to the growth in placement
service revenues, income from operations rose 17% 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
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.


                                                                  Six Months
                                                              Ended March 31
                                                              2007      2006
Net revenues:
Contract services                                             44.0%     54.8%
Placement services                                            56.0      45.2

Net revenues                                                 100.0     100.0

Operating expenses:
Cost of contract services                                     29.8      38.7
Selling                                                       35.2      27.7
General and administrative                                    32.5      31.5

Total operating expenses                                      97.5      97.8

Income from operations                                         2.5%      2.2%


Net Revenues
Consolidated net revenues for the six months ended March 31, 2007 were up
$91,000 (1%) from the prior year.  Placement service revenues increased
$1,101,000 (25%), while contract service revenues decreased $1,010,000 (19%).

National employment levels during the first six months of this year were
higher than for the same period last year, and the Company experienced

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stronger demand for its placement services.  As a result, the number of
placements grew by 11% and the average placement fee was up 12% 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 22% decrease in the number of billable hours,
which was partially offset by a 3% increase in the average hourly billing
rate.

Operating Expenses
Total operating expenses for the six months ended March 31, 2007 were up
$56,000 (1%) compared with the prior year.

The cost of contract services was down $840,000 (22%) as a result of the lower
volume of contract business.  The gross profit margin on contract business was
32.3% for the six months ended March 31, 2007, which was 2.9 points higher
than 29.4% for the prior year.  There are no direct costs associated with
placement service revenues.

Selling expenses increased $762,000 (28%) for the period.  Commission expense
was up 28% and recruitment advertising expense was up 43% because of the
higher volume of placement business.  Selling expenses represented 35.2% of
consolidated net revenues, which was up 7.5 points from the prior year because
of the change in revenue mix.

General and administrative expenses increased $134,000 (4%) for the six months
ended March 31, 2007.  They represented 32.5% of consolidated revenues, which
was up 1.0 point 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 March 31, 2007, the Company had cash and cash equivalents of $5,539,000,
which was a decrease of $365,000 from September 30, 2006.  Net working capital
at March 31, 2007 was $5,821,000, which was a decrease of $230,000 from
September 30, 2006, and the current ratio was 3.3 to 1.  The Company had no
long-term debt.  Shareholders' equity as of March 31, 2007 was $6,749,000,
which represented 73% of total assets.

During the six months ended March 31, 2007, the net cash provided by operating
activities was $390,000.  Net income for the period, together with
depreciation and other non-cash charges, provided $525,000, while working
capital items used $135,000.

Expenditures for the acquisition of property and equipment were $240,000 for
the six months ended March 31, 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

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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 March 31, 2007, and during the six 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, 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 March 31, 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 March 31, 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.

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                        PART II - OTHER INFORMATION

Item 4, Submission of Matters to a Vote of Security Holders.

At the annual meeting of shareholders on February 26,2007, the shareholders
elected all nominees for election as directors and approved the Amended and
Restated General Employment Enterprises, Inc. 1997 Stock Option Plan.

The name of each director elected, together with the number of votes cast for
election and the number of votes withheld, are presented below:


Nominees                       Votes For          Votes Withheld
Dennis W. Baker                4,222,273             342,645
Sheldon Brottman               4,237,450             327,468
Andrew Dailey                  5,970,465             163,853
Delain G. Danehey              4,233,106             331,812
Herbert F. Imhoff, Jr.         4,232,368             332,550
Joseph F. Lizzadro             4,263,665             301,253
Kent M. Yauch                  4,233,013             331,905

The number of votes cast and the number of broker non-votes on the proposal to
approve the Amended and Restated General Employment Enterprises, Inc. 1997
Stock Option Plan were as follows:

For                            2,370,260
Against                          444,877
Abstain                           49,558
Broker non-votes               1,924,423


Item 6, Exhibits.

The following exhibits are filed as a part of Part I of this report:

No.    Description of Exhibit

10.01* Amended and Restated General Employment Enterprises, Inc. 1997 Stock
       Option Plan.

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.



* Management contract or compensatory plan or arrangement.


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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:  May 4, 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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