UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                      WASHINGTON, DC  20549

                            FORM 10-Q

[X]  Quarterly Report Under Section 13 or 15(d) of the Securities
     Exchange Act of 1934

     For the quarterly period ended June 30, 2001

                               or

[ ]  Transition Report Pursuant to Section 13 or 15(d) of the
     Securities Exchange Act of 1934

     For the transition period from __________ to __________

               Commission File Number:  001-05707


              GENERAL EMPLOYMENT ENTERPRISES, INC.
     (Exact name of registrant 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 2100, Oakbrook Terrace, Illinois    60181
           (Address of principal executive offices)          (Zip Code)

                         (630) 954-0400
      (Registrant's telephone number, including area code)

                         Not Applicable
(Former name, former address and former fiscal year, if changed
since last report)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act during the preceding 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 __

The number of shares outstanding of the issuer's common stock as
of July 31, 2001 was 5,086,656.




                 PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEET
                                            June 30 September 30
                                               2001         2000
(In Thousands)                           (Unaudited)

ASSETS
Current assets:
Cash and cash equivalents                   $ 7,130      $ 7,236
Short-term investments                        1,484        5,470
Accounts receivable, less allowances
  (June 2001--$334; Sept. 2000--$512)         3,706        4,430
Income tax refunds receivable                   803           --

Total current assets                         13,123       17,136

Property and equipment:
Furniture, fixtures and equipment             6,737        6,058
Accumulated depreciation                    (3,776)      (3,215)

Net property and equipment                    2,961        2,843

Goodwill, net                                   893           --

Total assets                                $16,977      $19,979


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Dividends payable                           $    --      $ 1,272
Accrued compensation and payroll taxes        2,694        3,769
Other current liabilities                       621          795

Total current liabilities                     3,315        5,836

Shareholders' equity:
Common stock, no-par value; authorized --
  20,000 shares; issued and outstanding --
  5,087 shares                                   51           51
Capital in excess of stated value of shares   4,569        4,569
Retained earnings                             9,042        9,523

Total shareholders' equity                   13,662       14,143

Total liabilities and shareholders' equity  $16,977      $19,979

See notes to consolidated financial statements.



GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
                                  Three Months       Nine Months
                                 Ended June 30     Ended June 30
(In Thousands, Except Per Share)  2001    2000      2001    2000

Net revenues:
Placement services             $ 3,482 $ 6,088   $13,856 $17,397
Contract services                3,939   3,820    10,726  12,422

Net revenues                     7,421   9,908    24,582  29,819

Operating expenses:
Cost of contract services        2,568   2,480     6,964   8,145
Selling                          2,224   3,533     8,648  10,371
General and administrative       3,340   2,828    10,173   8,551

Total operating expenses         8,132   8,841    25,785  27,067

Income (loss) from operations    (711)   1,067   (1,203)   2,752
Interest income                     99     171       442     460

Income (loss) before
  income taxes                   (612)   1,238     (761)   3,212
Provision (credit) for
  income taxes                   (235)     495     (280)   1,290

Net income (loss)              $ (377) $   743   $ (481) $ 1,922

Net income (loss) per share:
Basic                          $ (.07) $   .15   $ (.09) $   .38
Diluted                        $ (.07) $   .15   $ (.09) $   .38

Average number of shares:
Basic                            5,087   5,087     5,087   5,087
Diluted                          5,087   5,116     5,087   5,118

See notes to consolidated financial statements.



GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
                                                    Nine Months
                                                  Ended June 30
(In Thousands)                                     2001    2000

Operating activities:
Net income (loss)                              $  (481) $ 1,922
Depreciation and other noncurrent items             627     510
Reduction of long-term obligations                   --   (400)
Changes in current assets and current
 liabilities, net of effects from acquisition:
  Accounts receivable                             1,314   (621)
  Income tax refunds receivable                   (803)      --
  Accrued compensation and payroll taxes        (1,097)     577
  Other current liabilities                       (180)   (227)

Net cash provided (used) by operating activities  (620)   1,761

Investing activities:
Acquisition of property and equipment             (691) (1,040)
Acquisition of Generation Technologies, Inc.    (1,523)      --
Purchases of short-term investments                  -- (1,461)
Maturities of short-term investments              4,000   3,800

Net cash provided by investing activities         1,786   1,299

Financing activities:
Cash dividend paid                              (1,272)   (254)

Increase (decrease) in cash and cash equivalents  (106)   2,806
Cash and cash equivalents at beginning of period  7,236   5,025

Cash and cash equivalents at end of period      $ 7,130 $ 7,831

See notes to consolidated financial statements.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)


Interim Financial Statements

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-Q.  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-K for the year ended September
30, 2000.


Accounting Policies

Goodwill is being amortized over a period of 40 years.

In June 2001 the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 141, "Business
Combinations," and Statement of Accounting Standards No. 142,
"Goodwill and Other Intangible Assets," effective for fiscal
years beginning after December 15, 2001.  Under the new rules,
goodwill will no longer be amortized but will be subject to
annual impairment tests.

The Company has not determined whether it will adopt these rules
beginning in fiscal 2002 or 2003.  The non-amortization provision
of Statement 142 is not expected to have a material effect on net
income.  The Company has not determined what effect, if any, that
the impairment tests might have on future earnings and financial
position of the Company.


Cash and Short-Term Investments

The balance of cash and cash equivalents as of June 30, 2000 on
the consolidated statement of cash flows has been adjusted to
include $3,876,000 of securities previously classified as short-
term investments.


Acquisition

On April 10, 2001, the Company completed a transaction to
purchase substantially all of the assets and business operations
of Generation Technologies, Inc. (GenTech) in accordance with an
Asset Purchase Agreement.  GenTech operates a staffing business
in Pittsburgh, Pennsylvania, specializing in the placement of
information technology professionals, and the Company intends to
operate the business in substantially the same manner in the
future.  The assets acquired include the business operations,
company name, customer lists, interests in office space and
equipment, accounts receivable and goodwill.

The purchase price was established as an initial cash payment to
the seller and three annual cash payments to be equal to a
multiple of the respective year's annual earnings, as defined.
The initial cash payment on April 10, 2001 was paid out of the
Company's existing cash resources, and the Company expects that
similar cash resources will be available to fund the future cash
payments.  The initial cost of the acquisition was $1,523,000, of
which $624,000 was allocated to the net assets acquired and
$899,000 represented the excess of the cost over net assets
acquired ("goodwill").  Future payments under the purchase
agreement will be recorded as additional goodwill when the
amounts are determined.

This transaction was accounted for as a purchase, and the results
of GenTech's operations are reflected in the Company's financial
statements for periods subsequent to the date of acquisition.
The pro forma results of operations presented below assume that
the acquisition had occurred at the beginning of fiscal 2000:

                                                  Nine Months
                                                Ended June 30
(In Thousands, Except per Share)                 2001    2000

Net revenues                                  $26,441 $31,466

Net income (loss)                               (371)   2,012

Net income (loss) per share - diluted           (.07)     .39

This information is presented for informational purposes only.
It is not necessarily indicative of the results that would have
been achieved had the acquisition taken place at the beginning of
fiscal 2000 or of future results of operations.



Item 2.  Management's Discussion and Analysis of Financial
Condition and Results of Operations.

The Company provides placement and contract staffing services for
business and industry, specializing in the placement of
professional information technology, engineering and accounting
professionals.  As of June 30, 2001, the Company operated 41
offices located in major metropolitan business centers in 13
states.

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

                                  Three Months       Nine Months
                                 Ended June 30     Ended June 30
                                 2001     2000     2001     2000
Net revenues:
Placement services               46.9%   61.4%     56.4%    58.3%
Contract services                53.1%   38.6%     43.6%    41.7%

Net revenues                    100.0%  100.0%    100.0%   100.0%

Operating expenses:
Cost of contract services        34.6%   25.0%     28.3%    27.3%
Selling                          30.0%   35.7%     35.2%    34.8%
General and administrative       45.0%   28.5%     41.4%    28.7%

Total operating expenses        109.6%   89.2%    104.9%    90.8%

Income (loss) from operations    (9.6)%  10.8%     (4.9)%    9.2%


Third Quarter Results of Operations

Net Revenues

For the three months ended June 30, 2001, consolidated net
revenues were down $2,487,000 (25%) from the same period last
year.  This was due to the combination of a $2,606,000 (43%)
decrease in placement service revenues and a $119,000 (3%)
increase in contract service revenues.  Placement services
represented 46.9% of consolidated net revenues for the period,
and contract services represented 53.1% of the total.

Placement service revenues were down for the quarter because of a
39% decline in the number of placements, together with a 4%
decrease in the average placement fee.  The increase in contract
service revenues was the result of a 6% increase in the average
hourly billing rate, while billable hours declined slightly.

The Company attributes the decline in revenues to the effects of
the slowdown in the U.S. economy that has caused customers to
delay or reduce their hiring and contract staffing activities,
particularly those customers operating in the computer and
information technology field.  As an indication of the national
slowdown, the U.S. Gross Domestic Product grew at a 0.7% annual
rate during the quarter ended June 30, 2001, compared with 5.6%
for the quarter ended June 30, 2000.


Operating Expenses

Total operating expenses for the quarter were down $709,000 (8%)
compared with the same quarter last year.

The cost of contract services was up $88,000 (4%), as a result of
the higher contract service revenues.  The gross profit margin on
contract services was 34.8% this quarter, compared with 35.1% the
prior year.

Selling expenses decreased $1,309,000 (37%) this quarter, and
they represented 30.0% of consolidated net revenues, which was
down 5.7 points from the prior year.  Commission expense was down
43% due to the lower placement service revenues and lower average
commission rates, while recruitment advertising expense was 17%
lower than last year.

General and administrative expenses increased $512,000 (18%) for
the quarter, and they represented 45.0% of consolidated net
revenues.  This was up 16.5 points from the same quarter last
year.  Compensation in the operating divisions increased 41% for
the quarter, as lower consultant productivity and lower
commissions led to higher amounts of base pay.  Office rent and
occupancy costs were up 19% for the quarter, while all other
general and administrative expenses were down 1%.  Areas where
the Company reduced costs include administrative compensation and
office operating costs.


Other Items

The effect of lower revenues combined with higher general and
administrative expenses resulted in a loss from operations of
$711,000 for the quarter, which was a decrease of $1,778,000
compared with income from operations of $1,067,000 for the same
quarter last year.

Interest income was down $72,000 (42%) in the quarter, due to a
combination of lower average funds available for investment and
lower average interest rates.

The effective income tax rate was 38% this quarter, down slightly
from the 40% rate the prior year.

After interest and taxes, the net loss for the quarter was
$377,000, which was a decrease of $1,120,000, compared with net
income of $743,000 last year.




Nine Months Results of Operations

Net Revenues

For the nine months ended June 30, 2001, consolidated net
revenues were adversely affected by the same U.S. economic
conditions that affected the third quarter, and they were down
$5,237,000 (18%) from the same period last year.  This was due to
the combination of a $3,541,000 (20%) decrease in placement
service revenues and a $1,696,000 (14%) decrease in contract
service revenues.  Placement services represented 56.4% of
consolidated net revenues for the period, and contract services
represented 43.6% of the total.

Placement service revenues were down for the period because of a
25% decline in the number of placements, partially offset by a 4%
increase in the average placement fee.  The decrease in contract
service revenues was the result of a 14% decline in billable
hours.


Operating Expenses

Total operating expenses for the year to date were down
$1,282,000 (5%) compared with the same period last year.

The cost of contract services was down $1,181,000 (15%), as a
result of the lower contract service revenues and an improvement
in the profit margin.  The gross profit margin on contract
services was 35.1% for the year to date, compared with 34.4% the
prior year.

Selling expenses decreased $1,723,000 (17%) for the nine-month
period, and they represented 35.2% of consolidated net revenues,
which was slightly higher than the prior year.  Commission
expense was down 22% due to the lower placement service revenues
and lower average commission rates, while recruitment advertising
expense was up 10% due to higher spending on the Internet.

General and administrative expenses increased $1,622,000 (19%)
for the year to date, and they represented 41.4% of consolidated
net revenues.  This was up 12.7 points from the same period last
year.  Compensation in the operating divisions increased 33% for
the year to date, due to an increase in the average number of
employment consultants, together with the effect of lower
consultant productivity and lower commissions that led to higher
amounts of base pay.  Office rent and occupancy costs were up
16%, and bad debt expense doubled.  All other general and
administrative expenses were down 1%.


Other Items

The effect of lower revenues combined with higher general and
administrative expenses resulted in a loss from operations of
$1,203,000 for the year to date, which was a decrease of
$3,955,000 compared with income from operations of $2,752,000 for
the same period last year.

Interest income decreased $18,000 (4%) in the period, primarily
due to lower average funds available for investment.

The effective income tax rate of 37% for the year to date was
less than the 40% rate last year because certain non-deductible
items affect the rate differently in a loss period than in a
profitable period.

After interest and taxes, the net loss for the nine months was
$481,000, which was a decrease of $2,403,000 compared with net
income of $1,922,000 last year.



Financial Condition

As of June 30, 2001, the Company had cash and short-term
investments of $8,614,000.  This was a decrease of $4,092,000
from September 30, 2000.  Net working capital at June 30, 2001
was $9,808,000, which was a decrease of $1,492,000 compared with
last September, and the current ratio was 4.0 to 1.

During the nine months ended June 30, 2001, net cash used by
operating activities was $620,000.  The cost to acquire GenTech
in April 2001 was $1,523,000, and the Company spent $691,000 for
the acquisition of property and equipment.  A cash dividend on
common stock of $1,272,000 ($.25 per share) was paid in January
2001.

All of the Company's office facilities are leased, and
information about future minimum lease payments is presented in
the notes to the consolidated financial statements contained in
the Company's annual report on Form 10-K for the year ended
September 30, 2000.

As of June 30, 2001, the Company had no debt outstanding, and it
had a $1,000,000 unused line of credit available.  Shareholders'
equity at that date was $13,662,000, which represented 80% of
total assets.

It is not known how long the slowdown in the U.S. economy will
last or how long it will continue to have an adverse effect on
the Company's operations.  The Company's short-term priority is
to minimize the impact of the economy and to be positioned for
growth when it recovers.  Management believes that existing cash
and short-term investments will be adequate to meet the Company's
anticipated needs.



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.  This
includes statements relating to business expansion plans,
expectations about revenue and earnings growth, and general
statements of optimism about the future.  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 project assignments, and the ability to attract and
retain qualified corporate and branch management.




                   PART II - OTHER INFORMATION


Item 6.  Exhibits and Reports on Form 8-K.

Exhibits

The following exhibit is filed as part of this report:

No.  Description

2.01 Asset Purchase Agreement Among Triad Personnel Services,
     Inc., Generation Technologies, Inc., and Michael P. Verona
     dated April 10, 2001.  Incorporated by reference to Exhibit
     2.01 to the Registrant's Form 8-K Current Report dated April
     10, 2001.  Commission File No. 1-05707.


Reports on Form 8-K

The Registrant filed the following 8-K Current Reports during the
quarter ended June 30, 2001:

The Company reported that it acquired the assets and business
operations of Generation Technologies, Inc. on April 10, 2001.

The Company reported the death of Herbert F. Imhoff, the
Company's Chairman of the Board and Chief Executive Officer, on
June 6, 2001.




                           SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.


                          GENERAL EMPLOYMENT ENTERPRISES, INC.
                                    (Registrant)

Date:  August 9, 2001         By:   /s/  Kent M. Yauch
                              Kent M. Yauch
                              Vice President,
                              Chief Financial Officer and Treasurer